Builders have always found ways to get the job done, but right now, that job is getting a lot harder.
According to the Home Builders Institute’s Fall 2025 Construction Labor Market Report, the skilled labor shortage is costing the industry $10.8 billion every year. That includes $8.1 billion in lost homebuilding, or about 19,000 homes that never get built, and another $2.7 billion in higher carrying costs from longer project timelines.
Even though demand has slowed with high interest rates, the labor crunch isn’t going anywhere. As rates come down and buyers return, builders will feel that shortage even more. The ones who find ways to work smarter right now will be in the best position to grow when the market accelerates again.
When hiring more people isn’t an option, the only choice is to boost efficiency. That is where technology and AI can now make a real-world difference.
What the Numbers Say
The report paints a clear picture:
- Residential construction employs about 3.3 million workers, but lost 26,100 jobs over the past year.
- Wages for homebuilding crews are up 9.2 percent year over year, well above inflation.
- The average project delay tied to labor shortages is nearly two months.
Every extra week on a project means higher costs, slower payments, and fewer new starts. For most builders, that means you have to do more with the team you already have.
Why Tech Matters Now
Technology is not here to replace builders. It is here to make your team more productive and your projects run smoother.
From estimating to communication to final walkthroughs, the right tools help you save time, prevent mistakes, and stay on schedule. Here is how builders are putting tech to work:
1. Estimate and Plan Faster
AI-powered estimating tools help you create accurate bids and measurements in minutes instead of hours. That means fewer errors, faster turnaround, and more time spent building instead of catching up on paperwork.
2. Keep Projects Moving
Digital platforms keep everyone on the same page. When plans, change orders, and updates live in one place, you cut down on confusion and wasted trips to the jobsite.
3. Reduce Rework
Small mistakes can cause big delays and expenses. AI-assisted measurements, digital documentation, and photo verification help you catch problems early before they turn into costly fixes.
4. Train and Retain Talent
Newer workers can ramp up faster with modern, intuitive tools and guided workflows. The right technology makes it easier to learn on the job, build confidence, and keep crews engaged.
The labor shortage is not just a hiring problem. It is a productivity problem. And while no one can fix the workforce overnight, builders who use the right tools now will be ready when demand climbs again.
AI and construction tech are not about replacing people. They are about helping good builders build more, faster, and with less stress.
At Digs, we are helping builders save time, reduce rework, and simplify collaboration so you can keep projects moving even when crews are stretched thin.
