skills gap

Performance Property Real Estate Question

How Skills Gap Is Artificially Inflating Housing Prices

Q: Gerald, why has construction labor become so expensive lately and how is this going to affect real estate going forward? Eric, Quincy, MA A: Despite the fact that according to latest data, there are as many available jobs in the US as there are job seekers, the reality is that the available labor force lacks the skills to fill many vacancies particularly as it relates to construction. The housing bubble fiasco of the last decade displaced many construction workers and disincentivized many younger people from pursuing construction labor work which has caused a skilled construction labor shortage. This labor shortage in turn disincentivizes builders from building which exacerbates housing inventory shortages which causes home prices to rise further, faster. […]

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