Labor Shortages and Rising Costs Hinder Affordable Housing Development in the U.S.
The U.S. is facing a significant challenge in developing affordable housing due to rising labor costs and stagnant construction productivity. Despite a growing demand for low-cost rental units, developers are increasingly focusing on high-end projects because they cannot build affordable housing profitably. Labor costs have been rising steadily, while productivity in the construction sector has not improved, leading to higher overall building costs. This has resulted in a decrease in the availability of affordable housing units, with new construction of units renting for less than $1,000 a month becoming nearly impossible. The construction industry is heavily reliant on immigrant labor, and recent immigration policies have exacerbated worker shortages. 
