A recent surge in federal immigration enforcement has significantly disrupted the U.S. homebuilding industry, driving up labor costs and delaying construction projects across the country. According to a September survey by John Burns Research & Consulting, nearly two-thirds of builders reported that immigration raids are impacting their workforce, a sharp increase from 23% in March and just 13% a year earlier.
Builders in Jacksonville, Florida, one of the hardest-hit areas, reported losing as much as 70% of their labor pool due to raids. Scott Brannock, president of Tidewater Homes and the Northeast Florida Builders Association, said that the shortage of workers has stalled projects and led national builders to miss financial targets, with construction sites left idle for lack of crews to proceed with framing.
The National Association of Home Builders (NAHB) also noted in a recent survey that labor costs in construction have risen by a median of 4.2% compared with the previous year. Labor shortages extend beyond immigration enforcement, as growing demand for specialized trades in data center construction has also drawn away essential workers such as HVAC technicians and electricians with higher salaries, creating further challenges for homebuilders.
The workforce impact comes amid ongoing efforts to address historically high housing prices that have hindered homeownership and sales nationwide. Immigrant workers have long filled critical roles in trades including roofing, painting, and framing. In 2024, immigrants made up 26% of construction workers, the highest share recorded by the NAHB.
Department of Homeland Security officials describe the raids as operations focused on illegal employment networks that disrupt labor markets and threaten communities. Advocates for stricter immigration enforcement argue that removing undocumented workers will ease the housing crunch by reducing demand and contend builders should prioritize hiring U.S. citizens. Matthew O'Brien, deputy executive director of the Federation for American Immigration Reform, dismissed claims that immigration arrests harm the construction industry, emphasizing enforcement regardless of labor needs.
The intensification of immigration enforcement under the Trump administration this summer has propelled the issue beyond localized areas like South Texas, expanding to multiple regions nationwide. Jim Tobin, NAHB’s chief executive, described the phenomenon as becoming "ubiquitous," while builders in states such as Indiana estimate the loss of up to 25% of their residential construction workforce.
Beyond apprehending undocumented workers, raids have affected legally authorized immigrants, many of whom have been detained or have chosen not to report to work out of fear. Builders report that even temporary absences contribute to costly delays, as inefficiencies in the step-by-step construction process increase expenses related to site management, equipment rentals, and insurance.
Wages for tradespeople have surged accordingly. Brannock cited framers’ hourly rates in Jacksonville doubling from about $20 to between $40 and $45. For an average 2,500-square-foot home, framing labor costs have risen from approximately $10,000 to $25,000–$28,000.
The human toll is also significant. Eddy Velazquez, a Florida siding and roofing specialist with nearly two decades of experience, was deported in March after being stopped en route to a job site. His absence leaves a gap difficult to fill; subcontractors like Josh Putnal of Jacksonville say few U.S. workers are willing or able to replace these skilled laborers, suggesting prolonged effects on construction timelines and housing affordability.