Immigration raids across Texas are raising concerns beyond border communities, as builders and business leaders warn the crackdown is hitting the economy and the housing market.
They argue fears surrounding heightened Immigration and Customs Enforcement activity are keeping workers away or forcing them to stay home, leaving some housing development projects sitting unfinished.
Last week, a group of South Texas builders brought their concerns to lawmakers in Washington, D.C., warning that immigration raids at construction sites would raise construction costs.
“A project that was taking maybe four to five months on an average, starter-type home is now taking eight, nine, 10 months, just because of the delays,” said Efrain Gomez, treasurer of the South Texas Builders Association. “It’s a huge ripple effect.”
Construction loans in South Texas have decreased by 30% over the past year, according to the group. Developers say lenders are becoming hesitant to finance projects that may face unpredictable timelines due to workforce disruptions.
Industry representatives add that subcontractors are struggling to schedule crews, and some suppliers have reported slower orders as builders scale back new starts. The uncertainty, they say, is beginning to show up in home prices and availability across the region.
The White House has said there is no shortage of American workers and that employers will have the legal workforce they need.
The administration said 1 in 10 young adults in the U.S. are “neither employed, in higher education, nor pursuing some sort of vocational training.”
“There is no shortage of American minds and hands to grow our labor force,” White House spokesperson Abigail Jackson said in a statement. “President Trump will continue growing our economy, creating opportunity for American workers, and ensuring all sectors have the legal workforce they need to be successful.”
Gomez argued the American workforce is not enough to fill the demand for construction jobs.
“We don’t have the system providing people with the education to actually have a strong workforce in the United States,” he said. “The system has failed to provide a proper workforce.”
Rep. Henry Cuellar, D-Texas, agrees and said he’s asking federal officials to back off construction sites, as they did after agricultural employers warned raids were harming planting and harvest operations.
“I want Americans to have the job first,” Cuellar said. “But we know the reality. There’s not enough Americans to fill certain jobs.”
Economists following the Texas housing sector say prolonged labor instability could have effects well beyond individual job sites. Extended build times often translate into higher interest payments on construction loans, which are ultimately passed on to buyers in the form of higher home prices.
Real estate analysts note that Texas has relied on rapid homebuilding to keep pace with population growth. If that pipeline slows, affordability — already a challenge in many metro areas — could worsen. Smaller contractors, who operate on thin margins, may be the most vulnerable if projects stall for months at a time.
Local chambers of commerce are beginning to collect data on business impacts, arguing that the issue is not about immigration politics but about economic stability. Several builder associations are preparing additional trips to Washington to seek exemptions similar to those granted in the agricultural sector.
Nexstar Media Wire contributed to this report.
Originally reported by Xavier Walton, Taylor Delandro in News nation Now.
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