IL construction workers highest paid in U.S. as new home building lags
[July 15, 2025]
By Jim Talamonti | The Center Square
(The Center Square) – According to two new reports by Construction
Coverage, Illinois ranked 48th out of 50 U.S. states for new home
construction last year while leading the nation in construction worker
pay.
Analysts at Construction Coverage looked at wage data from the U.S.
Bureau of Labor Statistics and cost-of-living data from the Bureau of
Economic Analysis to determine where in the country construction workers
earn the most when local price differences are taken into account.
Michael Stromberg, head of Engineering & Data Analytics at Construction
Coverage, said construction workers in Illinois have the highest median
wages in the country after adjusting for cost-of-living metrics.
“That’s coming in at over $79,000 per year. For reference, that’s nearly
12% more than the next-highest neighboring Midwest state, Minnesota, at
just over $70,000 annually. That’s also 50% more than the median wage
for all workers in Illinois at roughly $50,000 per year,” Stromberg told
The Center Square.
Without the cost-of-living adjustment factored in, Stromberg said
Hawaii’s construction workers earn higher median wages than Illinois
workers, but Hawaii’s high cost of living resulted in Illinois’
elevation to the top spot.
Stromberg said the trends hold true at the local level.
“The Chicago metropolitan area ranks first among large metros for
construction worker pay. The Peoria metropolitan area ranks first among
mid-size metros, and Decatur and Champaign rank second and third
respectively among small metropolitan areas. So, from a personal income
perspective, Illinois is an attractive state to work in for construction
workers,” Stromberg said.
Nationwide, construction workers earn a median wage of $58,000 per year.
Most neighboring states had median wages significantly lower than
Illinois but still finished relatively high in the overall rankings.
Wisconsin slotted 9th out of 50 with a median wage of $66,780. Indiana
ranked 11th at $65,868, Missouri 13th at $65,387 and Iowa 14th at
$65,249. Kentucky came in 32nd at $56,340.
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Alan Wooten | The Center Square
In a separate report, Construction Coverage found that Illinois built
the third-fewest homes in the U.S. last year, with just 3.7 new units
per 100 existing homes. For context, there were 10.1 authorizations per
1,000 existing homes across the U.S.
The numbers are even more troubling for communities around the Illinois
Capitol. The Springfield metro area authorized two new units per 1,000
existing homes last year, placing it 199th among all small U.S. metros
building the most new housing.
The Chicago metro area authorized 4.6 new units per 1,000 existing homes
in 2024, the 9th fewest of any large U.S. metro.
Construction Coverage analyzed U.S. Census Bureau and U.S. Department of
Housing and Urban Development data for the report.
Stromberg said the relationship between labor costs and the cost of
housing is a complicated topic.
“Generally speaking, higher wages and benefits for construction workers
are obviously a direct increase in labor costs. However, higher pay can
lead to better worker retention [and] more efficient productivity. For
example, an experienced and cohesive crew might have fewer setbacks or
reworks,” Stromberg explained.
Stromberg noted that the construction industry has a higher union
membership rate than the national average for all workers.
“More specifically, the Illinois union membership rate for workers in
the private construction industry is 26.1%, so that’s nearly double the
union membership rate for all workers in Illinois,” Stromberg said.
Stromberg said the 26.1% rate for Illinois ranks third among all U.S.
states. He said the national union membership rate for all workers is
9.9%. |
