The construction industry is taking hits from all sides, grappling with labor shortages, skyrocketing material costs, and policy shifts that threaten to send builders scrambling. With immigration crackdowns and trade tariffs looming, it feels like trying to build a house with half a crew and overpriced lumber.
Industry lobbyists are waving the red flag, warning that these challenges could seriously chill new construction—at a time when prices are already near record highs and mortgage rates are doing their best impersonation of a rocket ship.
Here are some jaw-dropping stats to frame the issue (pun intended):
• 13% of the construction workforce is undocumented.
• 2x: Construction has double the number of undocumented workers compared to other industries (Pew ResearchCenter).
• 130K: Immigrants have joined the construction industry since 2022 (NAHB).
• 7.3% of home-building materials are imported (NAHB).
• 25%: Proposed tariff on Canadian and Mexican goods, which could send material costs soaring.
• 14.5%: Current tariff on Canadian softwood lumber—the backbone of home construction.
• No. 1: The U.S. is the world’s top importer of iron and steel for housing.
• ¼: A quarter of U.S.imported iron and steel comes from Canada (Observatory of Economic Complexity).
• $512M + $254M: Cement imported from Mexico and Canada, used in gypsum to make drywall.
• 50%: The cost increase for drywall since 2020 (NAHB).
• $90K: Federal and local regulations add this much to the cost of a new home (NAHB).
Regulations, Tariffs, and Deportations—Oh My!
While deregulation could provide relief (as the president of the Associated Builders and Contractors, a Trump backer, argues), it’s not the silver bullet. A study by the University of Utah and University of Wisconsin found that deportations from 2008 to 2013 of over 300,000 undocumented immigrants delayed about a year’s worth of construction per county and drove up new home prices by nearly 20%.
So, what’s a builder to do? Between regulations, tariffs, and labor woes, it might be time to consider prefab homes—or start learning to wield a hammer yourself. In the meantime, the housing market remains a construction zone, with plenty of caution signs ahead.
PHOTOS: Builder Dave Manley is preparing a new home in Auburn Ridge, thoughtfully designed by locally interior designer Brooke Mennen-Talsma. Their collaboration blends expert craftsmanship with innovative design, with completion anticipated in the summer 2025. They are proactively sourcing materials and securing bids earlier in the process to try and avoid unforeseen changes to the construction industry.
