Deep Dive
Why are construction leaders concerned about Trump's immigration and trade policies?
Immigrants make up a significant portion of the construction workforce, with 13% estimated to be undocumented. Deportations could lead to labor shortages, while tariffs on imports like wood and steel could increase material costs.
How could Trump's deportation policies impact the housing market?
Previous deportation efforts led to a 20% increase in home prices and a year's worth of lost construction in affected counties. With millions potentially deported, builders expect higher home prices and slower construction due to labor shortages.
What role do immigrants play in the construction industry?
Immigrants, including undocumented workers, perform many of the physically demanding jobs in construction, such as framing houses and laying pipes. They are crucial for maintaining the workforce, especially in areas with extreme weather conditions.
How might tariffs on imports affect the construction industry?
Tariffs on imports from Canada and Mexico, which supply significant amounts of wood and steel, could raise the cost of building materials by 7.3%. This would exacerbate existing housing shortages and increase home prices.
Why are builders struggling to fill construction jobs despite high unemployment?
Most native-born Americans are unwilling to take physically demanding construction jobs, especially in extreme heat. This has led to a reliance on immigrant labor, both documented and undocumented.
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