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WESLACO, Texas—At Monte Cielo, a new housing development in this growing region of South Texas, half-built homes are sitting empty. On a recent day, just a few workers hovered behind temporary wrap tacked to wall frames.

The quiet scene comes after federal immigration agents have hit the development repeatedly, carrying out at least half a dozen raids there in recent months, builders said. The most recent was a few weeks ago. Some eight workers were arrested in a chaotic scene of laborers running away from federal vehicles racing through the three-street subdivision at high speed, the builders said.

The result? Homes are months behind schedule, and contractors face an uphill battle to recruit more workers to finish them.

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