Construction leaders in South Texas warn that stepped-up Immigration and Customs Enforcement (ICE) arrests at job sites have disrupted industry operations, slowed building activity, and raised concerns about rising housing costs across the Rio Grande Valley.
Mario Guerrero, executive director of the South Texas Builders Association, said fear of ICE operations has driven many construction workers to stay home, leaving contractors short-handed and projects delayed.
According to ICE data obtained through a Freedom of Information Act request, more than 9,100 people have been arrested in South Texas since President Donald Trump took office, accounting for nearly one-fifth of all such arrests statewide.
Without sufficient labor, construction activity has slowed, creating ripple effects across the regional economy. Economists warn the shortages could push housing prices higher, even as state leaders emphasize efforts to improve affordability.
Guerrero said he decided to speak publicly after seeing a video last month showing ICE agents detaining workers who were pouring concrete at a residential construction site in the Valley.
“It’s what’s happening across the Rio Grande Valley at construction sites,” Guerrero stated. While acknowledging that law enforcement has a job to do, he expressed concern about workers with authorization being detained and the broader impact on the industry.
Guerrero called for local officials and industry leaders to meet later that month to discuss the effects of enforcement actions on the industry.
“There’s no labor,” he said. “Our people are hurting, our businesses are hurting.”
The comments resonated across the region, with data from the Federal Reserve Bank of Dallas showing construction employment in the Rio Grande Valley fell 5% in the third quarter, the largest job decline among sectors in the region.
Over 380 attendees gathered at the Brookhaven Event Center in Pharr last month for a meeting involving concrete, lumber, real estate and lending company representatives as well as elected officials. Business owners described declining sales, delayed projects and growing financial strain caused by labor shortages.
“Business is down significantly,” said Ronnie Cavazos, board president of the South Texas Builders Association. “If we continue on this trajectory, we will see a lot of businesses fail.”
Isaac Smith, co-owner of Matt’s Building Materials, noted that ICE operations have contributed to double-digit declines in sales at his family’s lumber stores.
“If job sites are getting raided, at any level, the construction can’t continue,” Smith added, highlighting increased late payments from customers as another factor affecting cash flow.
