Construction activity throughout the Washington, D.C. metropolitan region — typically one of the nation's most active building markets — is slowing significantly as mounting fears over immigration enforcement drive workers away from job sites.
What was once a predictable labor pool has become volatile almost overnight, according to contractors and developers who now face ballooning deadlines, stalled projects, and rising costs.
While labor shortages have been a longstanding concern in the construction sector, local builders say the intensity of the workforce decline has accelerated sharply due to heightened enforcement actions by Immigration and Customs Enforcement (ICE) under the Trump administration.
Cuahutemoc Gonzalez, a handyman with 20 years of experience across Maryland and Virginia, said many workers are no longer willing to take the risk of stepping onto a job site.
“People are scared, and they don't want to go out and look for work,” he told News4 in Spanish — a sentiment echoed across many informal labor networks.
Some contractors are incurring thousands in losses each day as projects drag far beyond original timelines. Real estate developer and general contractor James Broady said his once-steady operation has nearly ground to a halt.
“Personally, it’s slowed down for me about 75%," he said.
With crews dwindling unexpectedly, Broady said the uncertainty has become just as damaging as the actual shortages.
"You question whether you’re going to stay in business. Whether you’re going to be able to continue operating the same business that you’ve operated before. I’m looking at ways to pivot as we speak," he added.
Data from the Associated General Contractors of America shows that the issue isn’t localized. A striking 92% of construction firms nationwide report difficulty finding skilled workers, suggesting the industry could soon face a critical breaking point.
Brian Turmail, representing the association, said it only takes a rumor to trigger mass absenteeism.
“There have been a handful of enforcement actions on construction job sites. But it’s really the word of ICE’s presence or the rumor of an ICE raid at a facility or a nearby facility that’s keeping a lot of workers from coming in to work," he said.
Industry analysts warn that without intervention, the cost of public infrastructure, housing, and commercial development is likely to skyrocket — costs that will ultimately land on taxpayers, homebuyers, and small businesses.
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Labor shortages aren’t the only obstacle. Material prices have also soared as federal tariffs push up the cost of steel, lumber, and aluminum — core materials in most construction projects. According to the contractor survey, 41% of firms have already raised project prices to offset tariff-related costs.
This double pressure — labor scarcity + material inflation — is creating one of the most challenging construction climates in decades. Some builders say even previously approved projects are now financially unviable.
Developers like Broady fear that without immediate policy clarity or workforce relief measures, the effects could ripple through the broader economy. Commercial real estate expansion could slow, housing shortages could worsen, and infrastructure upgrades — already delayed — could face further backlogs.
“People do want to show up. They do want to do the work. … What does this mean for us as a country? It’s a big problem," Broady said.
Some industry groups are now lobbying for temporary worker protections or construction-specific work permits, arguing that immigration enforcement without a replacement labor strategy threatens national growth.
Originally reported by Mauricio Casillas, News 4 Reporter in NBC Washington.
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