On the subdivision Ronnie Cavazos is building near Harlingen, Texas, the framing crew that normally runs about eight to 10 workers is now down to just a few.
Cavazos owns The Structure Team, a homebuilding company in Texas’ Rio Grande Valley. He followed his father, a framer who immigrated from Mexico, into the business. Between scarce workers, longer build times and rising costs, Cavazos told Marketplace in October that he doesn’t expect his company to turn a profit in 2026.
He’s also president of the South Texas Builders Association, a homebuilders’ group in the Rio Grande Valley. In a segment that aired Nov. 1 on ABC’s “This Week,” Cavazos said that immigration officials had been “tapping guys on the shoulder while pouring concrete and picking them up.”
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When asked about replacing those workers, his answer was no. The manual laborers his industry needs aren’t there to hire, he said.
Voting blue and hoping for change
Cavazos considers himself neither a Democrat nor a Republican, ABC reported. This cycle, though, he found himself supporting Democratic candidates, and he predicted many people in his community would too.
On Nov. 3, Texas elected Democrat James Talarico to the U.S. Senate over Republican Ken Paxton. Texans hadn’t elected a Democrat to the Senate since Lloyd Bentsen won reelection in 1988.
Still, the win won’t do much for builders this year, as Talarico won’t be sworn in until January. Cavazos blames his losses in 2026 on tariffs and immigration raids.
President Trump put a 10% tariff on imported softwood lumber by proclamation in September 2025, under trade powers Congress had already handed the president. In the meantime, builders around the country say labor keeps getting harder to find and more expensive.
The National Association of Home Builders (NAHB) argues that with fewer workers on site, homes take longer to finish and cost more to build.
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Why building costs could keep climbing
An NAHB October survey found that one-third of builders reported seeing Immigration agents working in their area within the past month. Even some legally authorized workers were reluctant to come to work as a result and projects fell behind, the group said.
And builders are dealing with all of this while they report the weakest buyer traffic since April 2012, apart from the pandemic’s first month in March 2020. In October, NAHB’s builder confidence index also dropped to 29, its lowest reading since June 2012, and 43% of builders cut prices due to weaker demand and higher mortgage rates.
Builders’ own costs keep going up, too. In a Sept. 16 brief to a federal appeals court, filed with two other business groups, NAHB said the Trump administration’s policy of detaining immigrants without bond hearings had led to canceled builds and fewer homes for sale. That’s on top of a national shortfall of about 1.2 million homes.
Tariffs have also prompted 40% of contractors to raise their bids on how much a new build would cost, according to a national survey the Associated General Contractors of America conducted at the end of 2025. About three-quarters of respondents said the duties had affected their business.
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