McALLEN, Texas — Intensifying immigration enforcement across South Texas is slowing construction activity and raising alarms among builders who say labor shortages could worsen housing affordability across the region.
Construction leaders report that many undocumented workers in the Rio Grande Valley are avoiding jobsites out of fear of Immigration and Customs Enforcement (ICE) raids. Since President Donald Trump took office, ICE has arrested more than 9,100 people in South Texas — nearly one-fifth of all ICE arrests statewide — according to government data obtained through a FOIA request and analyzed by The Texas Tribune.
The labor disruption is already showing up in the data. Construction jobs in the region declined 5% in the third quarter of 2025, the largest drop among major industries, according to the Federal Reserve Bank of Dallas.
Mario Guerrero, executive director of the South Texas Builders Association, said the impact became impossible to ignore after he saw video footage of ICE agents detaining workers while they poured concrete at a residential construction site.
“I would like to start off this video by saying that I am an American citizen, and it’s crazy that we’re living in times where you actually have to state that,” Guerrero said in a video message he later shared publicly.
Guerrero stressed that while law enforcement has a duty to do its job, the manner in which ICE operations are unfolding is having serious economic consequences.
“It’s what’s happening across the Rio Grande Valley at construction sites,” he said.
He called on local officials to engage directly with the industry, warning that continued enforcement activity without solutions would further cripple construction.
“It’s time that we have our leaders show up,” he said. “Our people are hurting, our businesses are hurting. There’s no labor.”
Guerrero’s comments prompted a rare public discussion within the construction industry. At a November meeting in Pharr, more than 380 people — including builders, suppliers, lenders, and elected officials — gathered to discuss the fallout.
“Business is down significantly,” said Ronnie Cavazos, board president of the South Texas Builders Association. “If we continue on this trajectory, we will see a lot of businesses fail.”
Suppliers are also feeling the strain. Isaac Smith, co-owner of Matt’s Building Materials, said jobsite disruptions have sharply reduced sales and disrupted cash flow.
“If job sites are getting raided, at any level, the construction can’t continue,” Smith said. “It’s not a fun situation to be in.”
Smith noted that sales have dropped at double-digit rates since ICE operations escalated, while late payments from customers have increased.
“That takes an adverse effect on our cash flow and how we operate — how we manage expenses, and money coming in, and money going out,” he said.
For construction workers, the fear is deeply personal. Jesus, a 42-year-old laborer who asked that only his first name be used, said he now avoids many jobs entirely.
“We hardly work anymore; we’re afraid to go out into the street,” he said. “We don’t look for work because we’re scared.”
He estimates his household income has fallen by about 60% since the raids intensified.
“We wish it would stop, but we don’t control these things,” Jesus said. “The government does.”
Cavazos urged attendees at the meeting to remember the human toll of enforcement.
“Let me tell you about immigrants in this country,” Cavazos said. “Nobody believes in the American dream more than them. The immigrant should be celebrated, treated with dignity and allowed to work and provide for their families.”
Economists warn that prolonged labor shortages could further constrain housing supply, pushing prices higher at a time when Texas officials are focused on affordability.
Research on earlier immigration enforcement programs suggests similar outcomes. During the Obama-era Secure Communities initiative, deportations led to labor shortages, fewer new homes, and rising housing prices nationwide.
“It is difficult to forecast the future, as many economic conditions have changed over the past two decades,” said Dayin Zhang, an assistant professor at the Wisconsin School of Business. “However, given the current pace of deportations, it is reasonable to expect that shortages in construction labor and housing will become more severe than the period of Secure Communities.”
Guerrero’s public stance has drawn attention from state and federal leaders. He has met with U.S. Rep. Henry Cuellar and briefly spoke with Gov. Greg Abbott during a Valley visit, inviting him to future industry meetings.
Despite online criticism accusing him of defending cheap labor, Guerrero remains firm.
“People maybe don’t understand the magnitude of what’s happening,” Guerrero said. “But that’s where we have to come together as human beings, and we need to be a little cognizant about the real situation that we’re facing.”
Originally reported by Berenice Garcia, The Texas Tribune / Corpus Christi Caller-Times in DJC Oregon.
