Marketplace Morning Report — "How ICE Raids Are Disrupting D.C.'s Economy"

Host: Sabri Benashore (in for David Brancaccio)
Date: November 21, 2025
Duration: ~10 minutes

Episode Overview

This episode highlights the ripple effects of increased Immigration and Customs Enforcement (ICE) raids in Washington, D.C., focusing on their disruptive impact on the local construction industry, businesses, and real estate market. It also briefly covers recent market volatility, the escalating rural housing affordability crisis, and touches on global economic news.

Key Discussion Points and Insights

1. Markets Update and AI Bubble Jitters

• [01:31–02:28]

  • Markets initially saw gains due to strong AI-related performance (notably Nvidia).
  • The optimism quickly faded; the S&P 500 dropped 1.5% and Nasdaq 2% following concerns over the AI bubble and interpretations of strong jobs data possibly delaying Federal Reserve interest rate cuts.
  • Discussion included context from the BBC on how UK and Asian markets responded similarly.

  Quote [01:55]:
  "Strong sales at chip giant Nvidia initially boosted markets, but sentiment has turned negative again." — William Lee Adams, BBC

2. Escalating Housing Affordability Problems, Especially in Rural Areas

• [02:28–04:26]

  • A wave of homebuyers moving to rural areas for cheaper properties is driving up prices and reducing affordability even there.
  • Rural home buyers now need to earn about $75,000 to afford a typical home — double the pre-pandemic requirement, though rural incomes have only gone up by 33%.
  • Real estate agents in Wisconsin and Colorado describe shrinking inventories and price surges, with long-time locals increasingly priced out.

  Quote [03:40]:
  "Rural buyers, they have to earn about $75,000 in order to afford the typical home, and that is double what they needed to earn before the pandemic." — Chen Zhao, Redfin

  Quote [04:13]:
  "When you get priced out of maybe the bigger resorts, you tend to look a little further afield. And then what happens to the people that are living there? To the ranches, it becomes harder and harder for people to afford their local areas." — Dana Cattrall, Colorado Realtor

3. The Human Toll of ICE Raids on D.C. Construction and Real Estate

• [06:12–09:15]

  • Months of ICE raids have instilled deep fear among construction workers (many of whom are immigrants), leading to severe labor shortages.
  • Contractors and subcontractors are hesitant, or outright refuse, to enter D.C. for work. This causes cascading project delays across construction and real estate.
  • Gilbert Garcia, owner of Monumental Contractors, now draws only from workers willing to enter D.C. — about two-thirds of his workforce — and juggles crews accordingly.
  • Not just workers; entire companies have shuttered operations in D.C. due to fear, such as Complete Roofing Solutions.
  • Even realtors like Casey Abulafia are directly impacted, with tasks like painting and cleaning falling to the agents themselves when crews won’t show — slowing property sales and renovations.
  • Attempts to interview immigrant workers were unsuccessful due to fear, underscoring the pervasiveness of anxiety.

  Quote [06:53]:
  "Certain people are afraid to go into D.C. or other places because they think they can get detained or questioned." — Gilbert Garcia, Monumental Contractors

  Quote [07:20]:
  "He just called us and just said, 'Oh, I didn’t realize it was in D.C. or it was in that section of D.C. I can’t go.'" — Gilbert Garcia on a plumber's refusal

  Quote [08:45]:
  "28% of contractors as of late August say they've been either directly or indirectly impacted by enhanced ICE enforcement." — Brian Turmail, Associated General Contractors of America

  Quote [08:53]:
  "For some, the impact has been devastating. Complete Roofing Solutions in D.C. closed. In an automated email, the company said its crews were terrified of working in the city and quote, 'We have nothing to do but close the company.'" — Nancy Marshall Genzer

Memorable Moments & Notable Quotes

• On home price surge in rural Wisconsin [03:32]:
  "Three bedroom, one bath little ranch. $350,000. Prior to 2021, that house probably would have been $170,000." — Kristen Furstenberg, Realtor

• On contractors refusing jobs [07:20]:
  "He just called us and just said, 'Oh, I didn't realize it was in DC or it was in that section of dc. I can't go.'" — Relayed by Gilbert Garcia

• On businesses closing [08:53]:
  "'We have nothing to do but close the company.'" — Complete Roofing Solutions, via Nancy Marshall Genzer

Timestamps for Key Segments

• [01:31–02:28] — Market overview, AI and job data anxiety
• [02:28–04:26] — Rural housing affordability crisis intensifies
• [06:12–09:15] — ICE raids disrupting D.C.’s construction, business, and real estate scenes

Tone and Language

• The episode’s tone is brisk but empathetic, combining data with personal stories to highlight the economic and human consequences of immigration enforcement.
• Workers and business owners express anxiety and resignation; experts sound alarms about wider economic ripple effects.

Conclusion

This episode paints a vivid picture of how government policy shifts, like increased ICE enforcement, can generate broad economic and social ramifications — slowing business, upending industries, and fueling systemic uncertainty well beyond the immediate scope of law enforcement.

For further context, listen to the full episode on the Marketplace podcast.