How the Labor and Material Shortage is Slowing Home-Construction in Texas and What Developers Can Do

Construction workers framing a new home in Dallas area, Texas labour shortage visible

Construction firms in Texas are increasingly hitting a wall: there aren’t enough skilled workers and materials costs continue to climb. The U.S. construction industry reports labour productivity in construction has fallen more than 30 % since 1970. Federal Reserve Bank of Richmond In Texas markets like Austin and Dallas, where housing demand is high, this dual-constraint is reducing project speed, increasing risk and squeezing margins.

Builders face longer build times and unpredictable costs. For example: average profit margins in U.S. construction hover around 6 % (some as low as 2-3 %). Revizto 

Our firm, Architect United, works with developers to mitigate this by:

• Pre-qualifying labour subs and securing labour contracts early (locking rate and schedule)

• Procuring long-lead materials ahead of time, grouping purchases across multiple projects to gain volume pricing

• Using design for manufacturing and assembly (DfMA) methods to reduce onsite labour hours, improving productivityBy taking these steps, developers in Texas can reduce schedule risk and stabilize cost before labour or material shocks hit

If you’re planning new residential construction in Austin or Dallas and want to protect your budget and schedule from labour and material shocks, contact Architect United for a consultation. View our portfolio at www.architectunited.com/auportfolio