Los Angeles already has a shortage of affordable housing. Many home builders are illegal workers, so the raids are making the housing shortage even worse.

Google AI overview says:

Recent Immigration and Customs Enforcement (ICE) raids on construction sites, particularly those involving homebuilders, are causing significant disruption and fear within the industry. These raids, targeting undocumented workers, are raising concerns about workforce shortages, project delays, and increased costs. The raids are happening amidst an already existing labor shortage in the construction sector.