Data: National Association of Home Builders analysis of 2024 census data; Chart: Emily Peck/Axios
Stepped-up immigration enforcement is disrupting construction across Virginia and Maryland, a Richmond homebuilder says, slowing how quickly new homes can get built.
Why it matters: Virginia’s construction industry is more reliant on immigrant labor than the nation overall, with nearly 28% of its workers — and almost 38% of its trades workers — being foreign-born, per a National Association of Home Builders analysis of 2024 census data.
- That’s compared with 26.3% of construction workers nationally.
What they’re saying: “ICE has had significant impacts to vendors throughout Virginia/Maryland in the last 90 days,” a Richmond builder said in a survey conducted earlier this month by John Burns Research and Consulting.”
- “This has had a major impact on cycle times and the ability to start new houses.”
- Builders in Houston and Jacksonville similarly reported labor shortages, rising labor costs and construction delays tied to immigration enforcement.
The intrigue: These remarks were unprompted and “completely unsolicited,” says Rick Palacios, the consulting firm’s research director.
- Meanwhile: Builders are simultaneously contending with rising mortgage rates rates, higher material costs driven by tariffs and the Iran war, and growing competition for resources.
Between the lines: The data doesn’t distinguish among naturalized citizens, visa holders, or undocumented people.
- But NAHB chairman Bill Owens said immigration raids can still discourage legally authorized workers from reporting to job sites.
- Richmond, Henrico and Chesterfield have also recorded some of the highest numbers for deportation orders in Virginia in recent years, with over 2,700 since last October.
The other side: “There is no shortage of American minds and hands to grow our labor force,” says White House spokesperson Lauren Bis…