Construction leaders across South Texas say intensified immigration enforcement is rapidly shrinking the region’s construction workforce, forcing projects to slow and threatening to push housing costs higher, according to reporting by The Texas Tribune.
Industry officials say fear spread quickly this fall after videos circulated showing Immigration and Customs Enforcement (ICE) agents detaining workers at construction sites throughout the Rio Grande Valley. Since President Donald Trump took office, ICE has arrested more than 9,100 people in South Texas — nearly one-fifth of all such arrests statewide — according to ICE data obtained through a public records request.
Mario Guerrero, executive director of the South Texas Builders Association, said the impact on job sites has been immediate and severe. Many workers, including those with legal authorization, are staying home rather than risk detention, leaving contractors unable to staff active projects.
“Our people are hurting, our businesses are hurting. There's no labor,” Guerrero said in a video posted to the association’s Facebook page, urging local officials to intervene.
Data from the Federal Reserve Bank of Dallas show construction employment in South Texas fell about 5% during the third quarter of 2025 — the largest decline among major regional industries. Builders and suppliers say that slowdown is already rippling through the local economy.
Ronnie Cavazos, president of the association’s board, told industry leaders at a November meeting that construction activity is “down significantly” and warned that continued enforcement actions could force some companies to shut down entirely.
The labor shortage is also hitting workers’ incomes. A 42-year-old construction worker who asked to be identified only as Jesus told reporters he is earning roughly 60% less than before the raids began.
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“We're afraid to go out into the street,” he said. “The government controls these things.”
Economists say the pattern mirrors earlier immigration enforcement crackdowns. Research examining the Obama-era Secure Communities program found deportations reduced construction labor by 2% to 3% nationwide and cut new home construction by nearly 6%, contributing to higher housing prices.
“Given the current pace of deportations, it is reasonable to expect that shortages in construction labor and housing will become more severe,” said Dayin Zhang, an assistant professor at the Wisconsin School of Business.
The concern extends well beyond Texas. A recent analysis cited by CNBC found that in California — where more than 60% of construction workers are foreign-born and roughly one-quarter are undocumented — continued removals could sharply slow building activity and strip billions of dollars from the state’s economy.
Builders warn that prolonged labor shortages could delay infrastructure and housing projects at a time when demand remains high. Industry leaders are urging policymakers to balance enforcement with workforce realities, noting that labor scarcity could undermine efforts to expand housing supply and control costs.
While immigration policy debates continue at the federal level, construction executives say the immediate challenge is keeping projects staffed and communities growing amid mounting uncertainty.
Originally reported by Pedro Camacho in Latin Times.
