This story at a glance…

1. Construction faces worker shortages and rising costs.

2. Immigrants make up 13% of its workforce.

3. Tariffs may hike prices for steel, drywall, and more.

4. Builders warn of higher housing costs ahead.

Construction Faces Uncertainty Amid Tariffs and Deportations

The construction industry in the U.S. is bracing for significant disruptions from proposed immigration crackdowns and trade tariffs, both of which could ripple through an already fragile sector. Home builders, especially in growing cities like McKinney, Texas, are voicing concerns over how these policies might affect labor availability and the rising costs of essential building materials.

McKinney’s mayor, George Fuller, a long-time developer, acknowledged the industry’s dependence on immigrant labor. “We will absolutely have a labor shortage,” he said. While Fuller supports legal workforces and domestic production, he believes harsh enforcement and tariffs could create immediate and substantial setbacks.

Immigrant Labor: A Cornerstone of Construction
Immigrants, including undocumented workers, play a vital role in the construction sector, making up more than 13% of the workforce nationwide—double their share in other industries, according to Pew Research. States like Texas, California, and New Jersey depend heavily on immigrant workers, who represent over half of the construction laborers in those areas.

Builders worry that deporting undocumented workers would exacerbate ongoing labor shortages. Following mass deportations between 2008 and 2013, a study by the universities of Utah and Wisconsin found counties affected by worker losses experienced delays in projects and a 20% increase in home prices, as reported by the Wall Street Journal.

Tariffs Push Costs Higher
Adding to labor concerns, proposed tariffs on imports from Canada and Mexico could increase material costs. Softwood lumber from Canada, cement from Mexico, and gypsum for drywall are vital imports for U.S. construction. Gypsum prices have already surged nearly 50% since 2020, and builders are preparing for additional strain.

About 7% of construction materials in the U.S. are imported, and disruptions to this supply chain could push home prices even higher. “It would just add to the price pressure of housing at a time when affordability is already very stretched,” noted Eric Finnigan, vice president of demographics research at John Burns Research & Consulting.

A Mixed Response from Industry Leaders
Some in the industry are hopeful about potential deregulation and expanded opportunities for building on federal land. Michael Bellaman, president of Associated Builders and Contractors, said, “Enthusiasm is high,” citing the Trump administration’s pro-business stance. However, many are wary of increased costs and worker shortages, which would likely be passed on to homebuyers.

Firms are exploring strategies to mitigate the impact of tariffs, such as adjusting supply chains and advocating for more stable immigration policies. “We are doing our best to stay in front of it,” said Mike Forsum, president of Dallas-based Landsea Homes.

Reflection
Proverbs 24:3 reminds us, “By wisdom a house is built, and by understanding it is established.” As the nation debates complex policy decisions, Christians can pray for leaders to balance economic growth with fairness and compassion. Supporting neighbors impacted by these shifts—whether employers, workers, or families—demonstrates the love of Christ in action. Just as God builds His kingdom with care and justice, we too can seek to build wisely in our communities.