While some contractors dismiss the plan as political rhetoric, many say they can’t afford to lose more people from an aging, immigrant-dependent workforce still short of nearly 400,000 people.
Both presidential candidates promise to build more homes. One promises to deport hundreds of thousands of people who build them.
Former President Donald Trump’s pledge to “launch the largest deportation operation in the history of our country” would hamstring construction firms already facing labor shortages and push record home prices higher, say industry leaders, contractors and economists.
“It would be detrimental to the construction industry and our labor supply and exacerbate our housing affordability problems,” said Jim Tobin, CEO of the National Association of Home Builders. The trade group considers foreign-born workers, regardless of legal status, “a vital and flexible source of labor” to builders, estimating they fill 30% of trade jobs like carpentry, plastering, masonry and electrical roles.
The free market currently says that a new home is worth X dollars because of what people are willing to pay vs. the labor going into it. Materials are cheap compared to the work. The rates laborers get paid stem from the free market equilibrium on that. Labor rates go up, house prices go up, home ownership goes down. Builders in the US get about 15% margin on building and selling new homes. You have maybe 10% of wiggle room before the profit in building homes is not worth the effort. So laborers could get paid…10% more at best before home prices go up. That’s not going to attract many more people to offset immigrant labor demand.
The people who have to work at low wages bc of legal and social suppression are effecting the market equalibrum. Labor costs are just as real a factor in the market as anything.