Wages in the construction sector are skyrocketing, threatening to take the housing crisis to a whole new level.

Spain’s housing crisis threatens to leave a lasting mark on the lives of thousands of young people, especially in cities such as Barcelona. Prohibitively high apartment prices force buyers into endless mortgages, while renting consumes much of the income of those who choose that option. Both buying and renting are unaffordable in the most stressed parts of the market, and the situation could worsen in the coming years. The construction sector faces a pressing labor shortage, given the lack of interest from local workers. Wages in construction have surged 46% since 2019, adding to the rising cost of materials, the scarcity of buildable land, and financing restrictions. The result is a perfect storm in access to housing.

Among the many problems, the shortage of skilled workers stands out as one of the main constraints on new housing development. According to BBVA Research, unfilled vacancies in construction have quadrupled over the past eight years. Before the 2008 crisis, wages rose but there was a steady influx of young people into the sector, along with foreign labor. Early school leaving—despite its negative effects—supplied workers to construction. Today, the reality is very different: bricklayers and laborers willing to take on the tough working conditions are scarce, the workforce is aging, and generational replacement depends almost entirely on immigration.

Currently, Spain faces a critical housing shortage, aggravated precisely by the lack of workers. Industry reports note that the country builds very few new homes relative to its population—second worst in Europe. This shortfall creates a widening gap between supply and demand: between 2019 and 2023, over 900,000 new households were created, but only 430,000 homes were completed. The 450,000-unit deficit translates into pent-up demand that will put even more pressure on the market in the coming years. Without more construction workers, this gap will continue to widen, intensifying the housing crisis.

The supply of new homes is limited by labor shortages, rising material costs, lack of available land, and financing difficulties. On the demand side, population growth, unmet needs, stable employment, and the recent drop in interest rates are pushing housing purchases upward, further intensifying the housing crisis in Spain and cities such as Barcelona.

Since 2019, the share of construction workers over 45 has risen, now exceeding 55%. Moreover, a high proportion of these employees lack formal training—well above the European average. Construction’s economic importance has declined, and the number of workers remains far below historical averages. In March 2025, the sector accounted for just 6.8% of total employment, far from the nearly 14% seen in past decades. Still, the labor shortage affects not only construction but other economic sectors as well.

Consultancy Hays warned in 2023 that 80% of construction firms struggle to fill vacancies, putting intense upward pressure on wages, especially in on-site trades. This trend has equalized wages between manual roles and more technical positions, according to the firm.

There are very few young specialists—aged 25 to 40—willing to work in construction. Attracting and retaining young, skilled talent requires offering better pay to offset the physical demands of on-site work, as highlighted by Miguel De la Fuente of Hays Spain.

The National Construction Confederation estimates the labor shortage at around 700,000 workers, many of them in highly specialized roles such as formworkers, crane operators, tilers, site supervisors, and façade installers, among others.

This situation is a direct consequence of the major housing crisis that paralyzed the sector for more than a decade, pushing many workers into other industries or into early retirement. Many foreign workers returned to their countries, and construction work came to be seen as unattractive for young Spaniards.

Today, finding an experienced site manager without a university degree is nearly impossible. Some earn between €65,000 and €70,000 per year on large projects—sometimes more than the average salary of an architect in a firm—due to staff shortages and competition among developers.

Although the average salary of a site manager is about €39,000 per year, according to Indeed, some offers already reach €51,000 for projects in provinces such as Málaga.

Signs of optimism have emerged thanks to the arrival of immigrants, slightly lowering the average age in construction. Between 2022 and 2024, the share of employees aged 20 to 44 increased, reflecting the entry of foreign workers, especially in trades such as bricklayers, laborers, electricians, plumbers, and painters.

Even so, Miguel Cardoso, economist at BBVA Research, warns that these solutions are not definitive, since rising wages are unsustainable in the long run due to stagnant productivity. If this persists, it will only drive housing prices higher, worsening access for many citizens, especially in cities such as Barcelona.

The economist also points to the effects of the stalled Land Law reform, which continues to hinder land availability for construction. In addition, the sector’s profitability in Spain remains well below that of countries such as Germany or France. If hiring problems persist, housing will remain unaffordable. To face this challenge, Cardoso recommends investing in training, better planning of immigration, promoting business consolidation, advancing automation and industrialized construction, and forging political agreements to streamline procedures and expand housing supply.