A new study from Troup Howard, an assistant professor at the University of Utah, suggests that mass deportations of undocumented immigrants could have unexpected consequences for the housing market. The research reveals that stricter immigration enforcement leads to a decrease in the construction workforce, ultimately slowing down residential development. This slowdown contributes to rising home prices, not just for new homes but for existing properties as well, worsening the housing affordability crisis.
The study examined data from counties that implemented the Secure Communities program, which increased immigration enforcement. It found that when migrant workers, who often fill low-skill construction jobs, are deported, positions often go unfilled, particularly by American workers. The shortage of labor doesn’t just hurt the low-skilled workers—it also impacts higher-skilled jobs in the industry, leading to a broader slowdown in construction.
This research highlights the unintended economic consequences of immigration policies and their potential to exacerbate issues like housing shortages and job instability. It’s a reminder that the impact of immigration enforcement reaches far beyond border control, affecting local economies and the broader housing market.