In our area, the darned new homes keep going up, the prices keep going down, they're not slowing down new developments, and they're sucking up buyers from the resale pool so I think life is good for builders. Personally I hope the crackdown drive new construction prices up a bit so we get a few more buyers in the resale market!
I know one of the "loopholes" has been that undocumented workers provide a SSN without being "legal." Now, there is a stronger crackdown on providing actual paperwork. This has affected many industries in our area.
I've read quite a few articles about this recently. Here's an AZ story:
It will be interesting to see what unfolds....