Homebuilding labor shortages are adding to construction costs in the United States, where nearly two-thirds of builders in a private survey reported staffing effects from immigration enforcement.
The Wall Street Journal reported the finding from a September survey by John Burns Research & Consulting. The share citing a labor effect was 23% in March and 13% in September 2025.
A separate measure captured how widely enforcement was occurring. More than one-third of builders reported activity in their markets during the previous month, the National Association of Home Builders (NAHB) said Oct. 19. That figure measures reported activity in local markets, rather than the share of builders experiencing a labor impact.
NAHB Chairman Bill Owens said enforcement was delaying construction and discouraging some workers legally authorized to work from coming to job sites.
In another September survey, NAHB found a median 4.2% increase over 12 months in the cost of directly employed labor needed to build the same house. Some or serious shortages of directly employed framing crews were reported by 57% of builders, up nine percentage points from April 2025. NAHB says labor shortages increase costs for builders and consumers.
Immigration enforcement is one of several pressures on the workforce. NAHB also identified competition from data center construction and said its shortage measure across nine trades exceeds its level during the 2004-2006 building boom.
Builder confidence has weakened as well. The NAHB/Wells Fargo Housing Market Index fell three points to 29 in October, its lowest reading since June 2012. NAHB also cited higher mortgage rates and construction costs.
Builders’ experiences have varied, Zonda chief economist Ali Wolf reported. Some described little disruption, while replacement crews helped others keep projects on schedule. Builders in Texas, Florida and California frequently cited enforcement activity.
A Department of Homeland Security (DHS) spokesperson, quoted by The Independent, said the operations target illegal employment networks that harm U.S. workers and communities. NAHB has raised its concerns with federal officials and is seeking expanded legal work pathways and training for construction trades.
The next NAHB/Wells Fargo Housing Market Index release is scheduled for Nov. 17.
