In a construction industry already facing numerous challenges, the National Association of Home Builders (NAHB) has released a critical statement on the current federal immigration crackdown due to its reportedly negative effect on the industry’s labor force.
Off the bat, NAHB noted members of the trade organization have reported that “increased immigration enforcement and jobsite raids are heightening worker fears and further straining the construction labor pool,” specifically shortening the industry by about 300,000 workers, according to governmental data.
“Immigrant workers are vital to meeting the nation’s housing needs, accounting for more than one-quarter of the construction workforce,” the statement read. “The domestic labor pipeline alone cannot meet national or industry demand.”
NAHB said that it has been in contact with the Department of Homeland Security and Immigration and Customs Enforcement to voice its concerns directly.
Overall, these public comments represent stronger pushback from a prominent housing advocacy organization against federal immigration actions undertaken over the past year and a half, as the negative impacts on housing have become more clear.
Citing data from a Home Builders Institute (HBI) study, the statement noted that “the skilled labor shortage delays construction, drives up labor costs and raises home prices.” The study specifically found that the labor shortage on average adds two months to a construction timeline, reducing annual housing production by 19,000 homes, which represents a loss of $8.143 billion.
The study also found that these delays are costing builders $2.663 billion annually, in a situation where tariffs have already created barriers to affordability for homebuilders.
NAHB also noted that the push on immigration enforcement has “discouraged legally authorized workers from reporting to jobsites” in some markets, furthering the delays and raised costs.
The organization also had similar commentary on immigration in its recent Housing Market Index measuring builder confidence, which dipped to the lowest level in a year as builders remain vastly discouraged due to continued market challenges.
Other immigration commentary
The HBI is not the only organization to release a study on the negative impacts of immigration enforcement to housing.
Harvard’s Joint Center for Housing Studies (JCHS) has also released two reports this year on how slowdowns in immigration could hinder housing demand through lower levels of household formations.
In assuming a lower immigration scenario over the next decade, JCHS predicted that just 420,000 immigrants would be coming in per year through 2035, causing total new households to drop to 6.9 million, a 20% decline overall over the next decade.
Overall, households headed by immigrants have contributed roughly three-quarters of housing demand growth since 2010.
Additionally, as the immigrant population tends to skew younger, JCHS also expects nearly 60% of the household reduction to hit the under-45 crowd who are also in their prime home-buying years.
The path forward
In its voicing concerns, the organization also recently intervened in a Fifth Circuit immigration case—Sosnova Rodriquez v. Ortega—filing an amicus brief which argued against “indefinite detention without the opportunity to seek bond” and for “fair and consistent due process” for all. The oral arguments for the case were held last week on Sept. 24, with a decision to come within weeks or potentially months from now.
NAHB also used the statement to outline some of the ways it feels a solution can be reached: securing the border without “overly aggressive or unlawful enforcement,” creating legal pathways for some workers to remain in the U.S. and strengthening efforts to promote young adults toward skilled trades.
In this vein, the organization requested Congress pass the DIGNITY Act (H.R. 4393), which aims to both strengthen Border Patrol (via higher pay requirements) and create pathways to permanent work authorization for immigrants who meet requirements.
On the front of promoting trade careers, NAHB asked Congress to pass the CONSTRUCTS Act (H.R. 1055/S. 189)—a bipartisan legislation that aims to prepare young adults for rewarding careers in construction. The organization also asked for further expansion of apprenticeships and trade education.
Other solutions NAHB outlined include:
- Preserving legal pathways that allow immigrants to enter and work in the United States, including the H-2B temporary guest worker program
- Clarifying that employers are responsible for verifying only the identity and work authorization of their direct employees—not workers employed by subcontractors
