By Prashant Gopal and Heather Perlberg
I don’t know how we solve the labor shortage otherwise,” said John Burns, an Irvine, California-based homebuilding consultant. “What drives modular construction is the ability to build the house more cost-effectively.”
U.S. homebuilders say the labor crunch is their biggest challenge, and that it’s pushing costs up as much as 5.2 percent on average over 12 months, according to National Association of Home Builders/Wells Fargo surveys last year. President Donald Trump’s proposals to crack down on undocumented workers may further squeeze the industry, one heavily dependent on immigrant labor.
Confidence among U.S. homebuilders cooled in April after jumping a month earlier to the highest level since mid-2005, according to data released Monday by the National Association of Home Builders and Wells Fargo.