Idaho’s construction sector stands out as one of the fastest-growing industries in the state, second only to health care and social assistance in percentage growth. Over the last two decades, from 2004 to 2024, the industry has expanded by more than 60%, fueled by strong population growth and robust economic development across Idaho.

Employment Trends and Recovery

The construction industry experienced a significant decline during the Great Recession, losing approximately 22,887 jobs, or 44% of its workforce between 2007 and 2011. However, as the economy rebounded, construction employment steadily increased, surpassing its pre-recession peak in 2020. In 2024, Idaho’s construction workforce consists of roughly 66,389 private sector workers.

Wages in construction have consistently outpaced the state average, reflecting the growing demand for skilled labor. “Average construction wages have been consistently higher than Idaho’s overall average wage,” according to state labor data. The wage gap has grown from 4.6% in 2019 to 6.7% in 2023, underscoring the rising value of construction jobs in the state.

Housing Market Impact

The rapid population increase, especially during the COVID-19 pandemic, has dramatically influenced housing demand and prices. Idaho’s population grew by 3.4% in 2020 alone, adding over 60,000 new residents. This surge contributed to a 17% increase in median home prices that year, with prices rising by more than $63,000.

However, rising mortgage rates since 2022 have started to temper demand, resulting in lower home sales in 2024—the lowest since 1995. “As mortgage rates continue to hover around 7%, would-be sellers are holding out to keep their lower rate locked in before the pandemic,” industry analysts note. Meanwhile, buyers face “sticker shock” from higher borrowing costs, slowing the housing market’s pace.

Future Projections and Workforce Needs

Looking ahead, the Idaho Department of Labor projects a 25.6% increase in construction employment from 2022 to 2032—adding more than 16,000 workers. This is the highest growth rate forecasted for any industry in the state. Among construction trades, septic tank servicers and sewer pipe cleaners, carpenters, electricians, floor layers, and tile and stone setters are expected to see some of the strongest job growth, with increases ranging from 26.9% to over 30%.

“As Idaho continues to grow, the construction industry will remain a key driver of economic opportunity,” experts say. The sector’s expansion is supported by ongoing infrastructure investments, housing developments, and commercial projects that aim to meet the needs of a rapidly growing population.

Challenges and Opportunities

Despite strong growth, the construction industry faces challenges, including labor shortages and supply chain disruptions. Efforts to attract new workers and invest in training programs are critical to sustaining the industry’s momentum.

The state’s proactive approach to workforce development, combined with the high demand for construction labor, positions Idaho well for future economic prosperity. With continued population growth and investment, Idaho’s construction sector is expected to thrive well into the next decade.

Originally reported by Clear Water Tribune.