Immigration crackdown could drive up Lowcountry home prices, experts warn

CHARLESTON, S.C. (WCSC) - As Charleston’s red-hot housing market continues to challenge buyers, new immigration policies from the White House could make the search for an affordable home even tougher.

Latino workers make up nearly a third of the nation’s construction workforce. Many of these workers, particularly those who are living in the country without permission, now face the threat of deportation under the Trump administration’s renewed immigration enforcement efforts. Experts say the ripple effects could significantly disrupt the labor force — and drive up the price tag on new homes.

“It’s a risk they take every single day,” LocalSpanishNews.com founder Fernando Soto said. “They never know when ICE could show up at a job site. They’re just trying to provide for their families while helping build the American dream.”

Policy proposals could affect nearly 20% of the U.S. construction workforce, according to the Immigration Forum.

With the industry already experiencing a shortage, economists say losing even a fraction of those workers would have wide-reaching consequences.

“Labor costs are the single biggest expense for most businesses,” University of South Carolina Darla Moore School of Business economist Joseph Von Nessen said.

“When labor becomes scarcer, wages rise and those increased costs are often passed on to consumers,” he said.

Higher labor costs combined with rising tariffs on building materials could mean higher home prices across the board. In Charleston, where demand often outpaces supply, real estate agents say the situation could create even more uncertainty.

“Right now, it’s a big ‘what if,’” Sarah Pickard, a realtor with Keller Williams Realty, said. “But if tariffs continue and labor shortages worsen, prices are naturally going to go up. And buyers could get priced out of homes faster.”

Von Nessen said basic supply and demand principles are at work: fewer workers means longer building timelines and steeper housing costs.

“Just look at it from an economic standpoint,” Soto said. “If a starter home now costs $400,000 and let’s say your painter, your drywaller’s making $15 to $18 an hour. If these people are getting deported or they’re afraid to come to work and we have to hire American labor… we’re not going to do it for $15, $18 an hour. We’re going to want to do it for $35, $36 an hour, which means that a $400,000 home is now going to cost that much more. It just doesn’t add up.”

Von Nessen says the only way to address a growing labor shortage are to pay workers more, innovate with technology to reduce labor needs, or bring in more workers through immigration. Eliminating immigration as an option, he warns, leaves only two options, both of which could lead to higher costs for businesses and consumers alike.

Beyond the numbers, advocates like Soto remind the public that behind every labor statistic is a person, a family, and a future hanging in the balance.

“Immigrants aren’t asking for a 401(k) or a benefits package,” Soto said. “They’re just asking to go to work every day and support their families, something they’ve been doing for years.”

As Charleston continues to grow, experts say the effects of immigration policy on housing affordability could reshape the region for years to come.