Who Gets to Build? The Growing Debate Over Licensing and Trade Restrictions

Part 1: The Problem

Despite the promise of high-paying, in-demand careers in the trades, many employers are struggling to find enough skilled workers. This shortage is compounded by regulatory restrictions that make it harder to grow the workforce.  From rigid apprenticeship requirements to inconsistent licensing laws, barriers within the labor system are quietly constraining our ability to construct housing at the scale and speed needed. 

In many states, strict licensing rules require aspiring trades workers to complete extensive training and certification, often with limited reciprocity across state lines. These systems are designed to ensure quality and safety but can also create bottlenecks. For example, journeyman to apprentice ratios can limit the number of trainees a company can hire, stalling workforce growth even if demand is there. 

Meanwhile, recent federal policies have tightened prevailing wage and apprenticeship requirements for projects receiving public funding. While intended to improve worker protections, these new rules can make it more difficult for smaller employers, especially in rural or underserved markets, to build  affordable housing. 

There are also equity implications. The time and cost required to obtain licenses or complete formal apprenticeships can be prohibitive, especially for younger workers, immigrants, or individuals without existing industry connections. These systems, while well-intentioned, often favor those who already have access and resources. 

At the same time, the decline in union participation has reduced access to apprenticeship programs that once served as on-ramps into the trades. While new models like youth apprenticeships are gaining traction, they have yet to scale nationally. 

Ultimately, the housing crisis is not just a materials or policy problem, it is a workforce problem. And until we address the question of who gets to build, we may continue to fall short of the solutions we desperately need.