Construction worker
Unsplash.com/Josh Olalde
Federal immigration enforcement raids in South Texas are disrupting home construction projects, delaying housing deliveries and straining local suppliers as builders say workers are increasingly unwilling to show up at job sites that have been repeatedly targeted by agents.
At the Monte Cielo housing development in Hidalgo County, partially built homes have sat idle after immigration agents conducted at least six raids in recent months, according to builders who spoke to The Wall Street Journal. In one recent operation, several workers were arrested as agents entered the subdivision, prompting others to flee. Contractors say projects are now months behind schedule and replacement crews are difficult to secure.
"They hear Monte Cielo and say, 'No, no. You can pay me whatever you want, but I'm not going to go work there,'" builder Alejandro Garcia told the Journal.
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Mario Guerrero, CEO of the South Texas Builders Association, said enforcement activity is affecting documented and undocumented workers alike. "They are basically taking everyone in there working, whether they have proper documentation or not," he said, adding that while he supports deporting criminals, "when you are terrorizing jobsites, people are afraid to go to work."
According to the Journal, residential construction activity in Hidalgo County has dropped by roughly 30% in recent months, based on estimates from local title executives. Concrete supplier 57 Concrete reported a 60% decline in usage between late May and November and filed for Chapter 11 bankruptcy protection in December, citing reduced demand tied to raids. A regional tile supplier reported millions in lost sales and staff layoffs.
Local officials say the slowdown could raise housing costs and deter investment. McAllen Mayor Javier Villalobos said continued raids could dampen business activity and homebuilding across the region.
The Texas Tribune reported in late December that immigration enforcement in South Texas was pushing workers off job sites and into hiding, slowing projects and threatening to raise housing costs. Mario Guerrero, executive director of the South Texas Builders Association, told the outlet at the time that fear has spread quickly after videos circulated showing ICE agents detaining workers at construction sites in the Rio Grande Valley
Economists have warned similar effects could extend beyond Texas. Research cited by CNBC in September estimated that expanded deportations and enforcement-related workforce declines could reduce California's GDP by as much as $278 billion, with construction, agriculture and hospitality among the most exposed sectors.
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Tags: Texas, Economy, Immigration enforcement, U.S. Immigration and Customs Enforcement