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Labor rates, meanwhile, are driven by a classic scenario of demand outpacing supply. The labor pool has yet to fully recover from the pre-crash levels of 12 years ago, and there’s no indication it will until later this decade and even that may be wishful thinking.  There is genuine promise in off-site manufacturing applications for home building, yet beyond traditional trusses, panels, and components such as pre-hung doors, the industry penetration of true off-site–built homes remains about 3% as of 2019. That will change and inevitably increase, but only a handful of builders will find significant labor relief from manufacturing methods in the near term. 

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