The potential deportation of undocumented workers under recent federal policies may disrupt Utah's ambitious housing construction goals. Governor Spencer Cox aims to build 35,000 starter homes by 2028, but the removal of a significant portion of the workforce could lead to increased costs and delays. With approximately 12,000 undocumented workers in Utah's construction sector, their absence could severely strain the labor market, leading to higher building expenses and fewer affordable homes.

Construction Workforce Challenges

Utah's construction industry relies heavily on a diverse labor force, including many undocumented workers. The removal of these individuals could significantly impact the availability of labor and drive up construction costs. Experts warn that without this segment of the workforce, achieving the governor's housing goals will become increasingly difficult.

According to Steve Waldrip, the governor’s senior advisor for housing strategy and innovation, losing this part of the labor force would exacerbate already high housing prices. A study by economists from several universities found that deporting undocumented workers leads to increased home prices. This research analyzed changes in residential construction following the implementation of immigration enforcement programs, revealing shortages in both labor supply and housing stock, resulting in higher construction costs. Builders often responded by constructing smaller homes to mitigate rising expenses. The extent of the impact varies depending on the proportion of undocumented workers in a given area.

Economic Consequences of Deportations

Large-scale deportations not only affect the availability of low-skill jobs but also have broader economic implications. The departure of undocumented workers can lead to job shortages for U.S.-born workers and limit opportunities for higher-skilled professionals. The housing sector, particularly, faces challenges as essential tasks like framing and drywall installation are left undone, impacting related roles such as inspection and electrical work.

The study highlighted that while construction wages saw minimal increases, many low-skill positions remained unfilled. This created a ripple effect, reducing employment opportunities for higher-skilled workers. As a result, the overall job market suffered. Waldrip emphasized that rising costs could jeopardize the affordability of starter homes, making it harder to meet the governor's target. If construction prices climb too high, these homes may no longer be accessible to first-time buyers, undermining the initiative's core objective.