The Role of Immigrants in Rebuilding Los Angeles Following the Wildfires

Immigrants have been contributing to the Los Angeles community since before the city was founded, fueling local agriculture, construction, and commerce, while also shaping the city's diverse cultural landscape through food, art, and entrepreneurship.

Throughout the Los Angeles housing shortage, we have relied on immigrant workers, some of whom are undocumented, to build local homes. And now, when thousands of housing units have been lost due to last month’s devastating wildfires, there is an even greater need for skilled immigrant labor to help rebuild communities, restore lost housing, and support the region’s recovery efforts.  

At the same time, the current political administration has clearly stated its intent to deport undocumented immigrants from the country. 

Here is an unbiased look at the role of immigrants in rebuilding Los Angeles and how politics could impact the efforts to recover decimated housing.

The National Association of Home Builders estimates that 41% of the construction workforce in California is foreign-born.

These workers play an integral role, joining their American-born peers in regularly adding much-needed housing inventory. In 2023 alone, California started 56,700 new single-family homes plus 53,000 new multi-family homes to address the estimated shortage of 337,000 units. 

While immigrant workers provide labor to American markets, they also support local communities. Many have families, own homes, and contribute culturally and economically to the city. Many Americans are surprised to learn that even undocumented immigrant workers pay income tax. In California alone, undocumented immigrants paid $8.5 billion in income tax for the 2022 tax year. In fact, they often pay higher tax rates than American-born workers because they are frequently barred from receiving meaningful tax credits. Furthermore, many do not claim tax credits, deductions, or refunds they are entitled to due to a lack of awareness, concern about their immigration status, or insufficient access to tax prep assistance.

Unfortunately, the current path to residency and citizenship is unmanageable for many undocumented immigrants who want to be here legally. 

Under the current system, becoming a US citizen can take more than five years and cost over $4,000 (not including necessary travel and lodging). And, in most cases, the undocumented immigrant is expected to leave the US for at least 2.5 years of the application process, forcing them to leave their families, schools, churches, and jobs without any promise of return. 

Removing immigrant workers from the US is not just about lost labor; it’s about dismantling communities.

At least 11,100 residential units (11,000 of which were single-family homes) were lost to the Palisades and Eaton fires in January, creating a more time-sensitive need for new construction on top of the previous need to address the pre-existing housing shortage.  

The scale of destruction requires a sufficient workforce to rebuild homes, infrastructure, and communities. Labor shortages could exacerbate an already dire situation, delaying recovery for thousands of displaced residents. 

Sadly, the longer the recovery effort takes, the more likely displaced residents are to leave the area entirely. If we want the people who make LA so special to stay, we need to support them in rebuilding as quickly as possible. 

While Los Angeles may be able to restore the lost housing inventory without immigrant labor, the results could be disastrous.  

Firstly, it would take much longer to rebuild with 40% of the labor force missing. Dan Gatsby, Founder of the Los Angeles Builders Association, estimates that it could take 20 years to rebuild the burned communities. This timeline could potentially double without the use of immigrant labor. Additionally, the lower availability of labor would drive costs up.

Individuals and families may simply not be able to pay the price or endure the wait times. They may, instead, be forced to leave their communities in search of more accessible housing elsewhere. 

It is easy to see how an exodus of Angelenos (both the immigrant workers and the displaced residents) would create a ripple effect, impacting local businesses, local tax revenue, and the broader economy.

While not as pressing as rehoming those who lost everything to the fires, reducing the housing deficit is critical to keeping California housing cost increases sustainable.

Would we be able to build enough units to cover the long-standing housing shortage without immigrants? 

The immigrant workers in construction have already been trained and are skilled workers. Bringing in a new workforce of American-born builders would require years of training, assuming we can find enough native-born workers who are willing to take on these physically demanding and often low-paying jobs.

Mass deportation without regard for the current situation in California or long-term repercussions for the entire country is worse than short-sighted; it ignores the pressing, obvious need for immediate recovery assistance and undermines our joint efforts to rebuild. 

LABA wants to encourage policymakers and community leaders to recognize the value of immigrant labor and develop solutions that support both the rebuilding efforts and the workers who make them possible.