The United States construction industry is coming back strong this year. Just 96,000 building permits were issued in April 2020 — a five-year low. In contrast, an average of 135,500 building permits per month were issued in the U.S. during the first quarter of 2021.
A new Industrial Paint and Protection Magazine report reveals the top 10 cities for construction workers in 2021 based on demand, opportunity, median salary and cost of living for construction workers using BLS and Census data.
The following cities ranked in the top 10:
- Dallas, Texas
- Houston, Texas
- Minneapolis,
- Austin, Texas
- Phoenix, Ariz.
- Seattle
- Philadelphia
- Tampa
- Jacksonville
- Nashville
Six out of the top 10 cities for construction workers are in the South, and three of the top five cities are in Texas. The report also found construction laborer shortages across the country.
Here’s why the top five cities ranked highly on the list:
Dallas: Dallas had the most new building permits of any major metro in February. Construction worker demand is also one of the highest in the country.
Houston: Houston had the second highest building permits issued in February and construction workers enjoy above average wages compared to other cities in Texas.
Minneapolis: Minneapolis construction workers are paid the highest salaries on average. They also have a strong demand for workers — a 4:1 worker-to-permit ratio.
Austin: Austin has the third highest building permit requests in February and a shortage of construction workers. The Austin Business Journal described Austin as being, “in desperate need to build homes.”
Phoenix: The phoenix construction market has expanded 15% from 2016 to 2020, driven by a strong residential market.
Despite the lull in construction during the 2020 lockdowns, the construction industry is coming roaring back as residential units need to be built to keep up with insatiable home buyer demand driven by low interest rates. Both labor (e.g. tradesman, laborers, etc.) and materials (e.g. steel, lumber, and paint) are in short supply, driving up the value of skilled tradesman and construction laborers.
2021 will be a year where workers gain more leverage due to their in demand skills.
You can find the full list of the best cities for construction workers here.
