Trump's immigration and tariffs policies: How homebuilders are feeling the impact

Immigration Crackdown Impact - US industries like crop production, food processing, and construction are significantly impacted by immigration crackdown, with undocumented immigrants comprising 15% to 20% or more of the workforce [1] - Initial weeks saw a slight lull in construction, but no major problems have been observed recently on construction sites [3] - Labor shortages are significant, especially for skilled trades, leading to increased labor costs [11] Regional Differences - Southeast region experiences less impact compared to Texas and California, which have a higher percentage of Hispanic construction workers [5][6][7] - Nationally, over 60% of roofers and over 50% of painters are Hispanic [6] Employer Responsibility - Home builders primarily check licenses, workman's compensation, and insurance certificates of subcontractors, but not the individual workers of those subcontractors [9] - Responsibility of ensuring legal status falls on the subcontractors [9] Housing Market Dynamics - Supply chain constraints have eased, but labor remains a significant constraint [10][11] - Tariffs on lumber from the Pacific Northwest and Canada negatively affect the US and home building industries by increasing costs [12][13] - Rent increases are being kept reasonable at around 2% to 3% despite rising costs [14] - Renting is now cheaper than buying a home in all 50 MSAs in the US due to high interest rates [15] - Properties are nearly 100% full, indicating strong demand [16]