What a Slowdown in Immigration Means for the Home Building Industry

The home building industry relies heavily on the work from immigrants, with foreign-born workers making up one in every three workers in the construction trades, recent data from the Joint Center for Housing Studies of Harvard University show. And in metros where home building is more prevalent, the demand for foreign-born workers is even stronger. However, with a recent slowdown in immigration and a crackdown on immigration policies nationwide, the construction industry could begin to see the impact on its labor force.

Which roles are most affected by immigration policies?

According to most recent data from 2024, foreign-born trades workers are most likely construction laborers or carpenters. They also accounted for three-fifths of plasterers and drywall installers as well as half of all roofers, painters, and carpet, tile, and floor installers.

In metros where housing inventory is growing more quickly, the share of foreign-born workers is even greater

Nationwide, foreign-born workers make up a significant portion of the construction industry, but this is especially true in the metros where housing inventory is rapidly expanding.

In the seven metros that issued at least 150,000 building permits from 2019 to 2023, an average of 54% of the trades workforce was foreign‑born, according to the report. The Dallas–Fort Worth–Arlington, Texas metro led the nation in home building with nearly 350,000 permits during this timeframe. At the same time, 61% of its trades workforce was foreign‑born.

Meanwhile, in metros that issued between 75,000 and 149,999 permits, the average share of foreign-born workers was 40%, and the share of foreign-born trades people in metros with fewer than 75,000 housing permits averaged 22%.