When looking for a solution to the shortage, HBI discovered “an untapped market” in the veteran and transitioning military population.
A severe shortage of skilled workers entering the residential construction sector has had a major impact on affordability, but the Home Builders Institute (HBI) believes the country’s large veteran population may be part of the solution.
The skilled labor shortage has led to an increase in construction time, with each home taking nearly two months longer to build, according to an HBI study. Due to the delays, there was a reduction of 19,000 homes built in 2024, representing an economic loss of over $8 billion, the study found.
Associated Builders and Contractors (ABC) estimated that the construction industry needs to attract roughly 349,000 net new workers in 2026 and 456,000 new workers in 2027 to meet demand for construction services.
There are a number of factors in the past 30 years that have led to the labor shortage, according to HBI CEO Ed Brady. First, a strong push for four-year degrees led many young people toward academic careers rather than trades. With more people retiring from the workforce than entering, the shortage began.
The issue was compounded during the financial crisis of 2008, when the residential construction field lost tons of skilled workers because there wasn’t enough work. Without enough housing construction, workers left for jobs in manufacturing and hospitality or retired early, according to Brady.
More recently, rocky immigration policies have challenged the skilled labor workforce, Brady explains.
When finding a solution to the shortage became dire, HBI believed that the veteran and transitioning military population was “an untapped market.” The result was the HBI Military Services Program, which trains veterans, transitioning military service members, and their dependents in skilled trades.
On Monday, HBI and Invitation Homes announced a new partnership that will continue HBI’s mission to create opportunities for transitioning military service members, veterans, and their families.
The partnership includes an unspecified investment from Invitation Homes in HBI’s Military Services Program. It will also open doors for former military service members who complete HBI training to access job opportunities with the premier leasing and management company.
For nearly a decade, HBI has been raising awareness of the benefits of a career in a skilled trade among former members. It has proceeded to train, certify, and assist veterans and their families in finding successful careers.
HBI’s Military Services Program was supported early on by major companies like The Home Depot Foundation and Dewalt. It was recently given a $1 million gift from Google.org, and now Invitation Homes has joined the worthy cause.
These vital investments help HBI reach even more service members on their mission, according to Brady.
“It provides scale. We’re not changing our model—we feel like our model works. We introduce them to the industry, we train them in the industry, we certify them, we connect them to the industry to get a job,” Brady tells Realtor.com®.
“But the dollars from Invitation Homes, the dollars that Google have given us to apply into the veteran space just gives us more scale. We can provide better service, and we can grow our programs to serve more veterans, more transitioning military, even the spouses of veterans.”
Associated Builders and Contractors estimated that the construction industry needs to attract roughly 349,000 net new workers in 2026 and 456,000 new workers in 2027 to meet demand for construction services. (Stock image) (Bloomberg via Getty Images) Expanding training programs for former military could make a huge difference in the skilled labor shortage being experienced by residential construction.
“In many cases, the demographic of soldiers that want to be outside, want to work with their hands, and have that physicality, it’s natural for them to look at our industry,” says Brady. “They’ve got more discipline, they know how to create a task and how to do a job. They have a desire to be productive and build a career.”
Brady has also observed that many veterans want to “control their own destiny” once they leave the military. The desire to not be dependent on anyone else or an organization makes them great candidates for entrepreneurship, business ownership, and contracting roles.
A veteran’s point of view
For Philip Shealy, HBI offered a path when he was unsure of next steps.
After spending five years as an Army infantryman at Fort Drum in New York and Fort Stewart in Georgia, he had no clue what he wanted to do next, Shealy recalls. He decided to take advantage of the DoD SkillBridge to learn some skills before departing the service.
“I saw the HBI program and thought, even if I don’t go into the skilled trades like that, that will be information I hold for the rest of my life. It’ll be great for owning a home or just knowing a thing here or there,” Shealy tells Realtor.com.
“But the program does a pretty cool thing where they bring in recruiters from local companies. And they brought one in that sounded like something I wanted to do. So I applied with him and ended up getting the job.”
Shealy now works for Ace Electric, an electrical contractor in southern Georgia, alongside several fellow veterans who went through the same HBI program.
Although he wasn’t sure of his next steps, former Army infantryman Philip Shealy met a local Georgia electrical contractor through the HBI program and found a career he sees himself in for a long time. (Stock image) (Getty Images) The three-month program was conducted right at Fort Stewart. Participants learned everything they needed to enter a career in carpentry or electrical work, and they even built little homes on base as part of the training.
Shealy recalls one of the instructors being former military himself, so he was able to communicate effectively by building upon military skills and terminology and translating them to trade terms.
Many skills emphasized by the military, such as leadership and the ability to take instruction and corrections well, have transferred well to his career in a skilled trade.
Shealy shares HBI’s belief that trade jobs and the military attract the same type of person, making it a logical next step for many leaving the service.
“People that like to work with their hands, many of which are going to be hard workers and aren’t going to stop until the job gets done and done well—I think a lot of it transfers well over,” says Shealy.
For those still considering next steps, he says to give the SkillBridge and HBI programs a shot, because you may just end up finding a great path.
“When we’re getting out, it can be a very scary thing, not knowing where you’re going to end up,” says Shealy. “From my personal experience going through HBI programming, I had no clue what I wanted to do, and then I ended up finding something I’ll enjoy doing for a long time.”
Brady also emphasizes the longevity of a trade career.
“This is a career path, not just a job. Getting into the trades is something that you can hang your hat on for your career,” says Brady. “And it’s not a career that’s going to be diminished by technology or AI. Certainly innovation will make it more efficient, but you’re not going to take away roofers. You’re not going to take away plumbers.”