March's weakened home construction and non-moving builder sentiment are not the results of a labor shortage as many assume. Goldman Sach's reported that, to the contrary, the construction sector has experienced the largest job growth over the past year."

The Bureau of Labor Statistics reports that construction grew by 5.5%, leading all other sectors, and wage grew by 2.0% which was the national average. This data all-but destroys the lack of labor and wage growth theories, with the real culprit  apparently being permit issuing and land scarcity:

They asked about costs that didn't exist 10 years ago, and found high levels of builder frustration, not just from labor, but from cost overruns stemming from new regulations for house erosion control, energy codes and fire sprinklers. They also cited understaffed planning and permit offices as well as utility company delays.

Read More