The housing advisor to Utah Gov. Spencer Cox is predicting the Trump administration’s crackdown on illegal immigration could drive up home prices.
The Deseret News reports that Steve Waldrip, who serves as senior advisor for housing strategy and innovation for the Republican governor, estimated that roughly 10% of Utah’s construction workers are illegal immigrants. But he also stated that Utah construction companies are dealing with labor shortages that will be exacerbated if illegal immigrants are either forcibly removed by the federal government or voluntarily stay out of sight to avoid deportation.
“We’ve had a lot of feedback from the construction industry that they are really struggling to find skilled labor, and particularly carpenters, electricians, plumbers – those kind of trades are really, really thin in the state right now,” Waldrip said, adding home prices could soar if mass deportation occur. “No question that this will impact the bottom lines of builders, and they don’t generally absorb those losses, they pass those on to the ultimate buyers.”
Waldrip also pushed back at the belief that the removal of illegal immigrants would make more affordable housing available – Utah faces a housing shortage of roughly 40,000 units.
“It’s not going to have a measurable impact on the price of housing to deport immigrants,” Waldrip said. “But it will have a negative impact on the production side.”
Photo courtesy Jared / Flickr Creative Commons
I fail to see how this is even remotely a possibility. First and foremost, the illegal immigrants cannot work (legally) as they do not have valid papers. So, if a builder is employing illegal labor and paying them under the table, there is lost revenue for the state. Secondly, the focus is on “the worst of the worst”, which are illegal immigrants who have committed serious crimes in this country. Again, if a builder is hiring criminals to work on their crews, there is another infraction. Lastly, if we have a shortage of trained trades people, let’s get our Vocational Schools ramped up and get rid of DEI in the school system. In fact, eliminating DEI programs could be used to fund these programs.
I Totatally agree with you and you read my mind! We need to definitely Amp up more with the trade school getting more attendees enrolled to help build America and make it great.
Illegal migrants usually are not a skilled labor, familiar with construction codes, materials and requirements here in US. Construction companies should employ qualified workers, delivering high quality product – fine if this costs a bit more. Sales prices will still be what market is ready and willing to pay for it, not what a government official thinks it will be.
Supply v Demand 101. last 4 years millions of new people or demand for housing. Now mass deportation. or less demand. Vacancy are up nation wide . Austin Tx and some are over built.
I wonder if the illegal immigrants are actually plumbers, electricians, or skilled labor?
First, who states that Utah has a shortage of 40,000 units? Does this mean that Utah needs to build another 40,000 units to have places for illegals to live?! These people are here ILLEGALLY so what part of this does not Mr Wildrip not get? Furthermore if Utah deports say 10,000 illegals now living there then rents will drop and as for builders, supply and demand dictate prices so to say prices will be driven up is both disingenuous and untruthful. In fact prices could even drop so some people need to go back to Economics 101
Agreed 100%
100% deporting illegals will have a negative impact on housing affordability!
Doesn’t necessarily have to be “skilled”, there’s plenty more trades and/or functions that undocumented immigrants do and have been doing in construction for DECADES. E.g., my father was a drywall contractor up until the 90’s and Mexican laborers would be hired by his competitors. Drywall, carpentry, roofing, siding installation, landscaping, all the functions that go into home construction will be affected. My roof was redone two years ago, and all 13 laborers there were hispanic. I did not inquire about their status, but they got the job done. Yes, deport the violent criminals, but let the ones who are productive and do the jobs “we” don’t typically do (anymore) stay and earn a pathway to residency if not citizenship.
So, this guy is stating that wages paid to illegal aliens under the table (i.e. committing tax fraud) is less-expensive than wages paid to legal persons. That may be correct in the short-term, but it probably isn’t in the long-term.
By the same logic, I can buy stolen goods cheaper than I can purchase goods from a store. It *might* be true, but it doesn’t make it right.
So the fear is taxpayers homes might go up in value because it will be a better place for your family to live?