The only way labor is going to get cheaper is by using less of it. As it is, your most labor intensive stuff (framing, roofing, drywall, paint) is already being done almost exclusively by immigrants, whether legal or legal.
I think you're going to continue to see housing move more and more towards being manufactured and assembled rather than built. Where I live, your sand in place wood floors are pretty much non-existent outside the highest end homes. Even good looking engineered wood is becoming less common in favor of vinyl or laminate plank; not sure if that's just a price issue for the material or if the labor is cheaper to install the vinyl and laminate. Custom cabinets only go in pretty high end homes and they are now manufactured offsite and then hung in the house. Even with the out of the box cabinets, some of the tract home builders seem to be moving towards designs that cut down on corners in kitchen cabinets and countertops, I think because it takes extra labor.
I'm wondering whether the manufactured walls might become cost competitive now. They seemed to be getting popular for a hot minute, but I think it ended up not saving any money and not improving quality. With how tight the labor market is getting, I wonder if that won't take off, especially for tract home builders that are buildng the same five houses over and over again.
