News Type: Roundtable Weekly

Sentiment Index Shows Market in Holding Pattern as Capital Conditions Improve but Transactions Lag

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The Real Estate Roundtable (RER) this week released its Q2 2026 Sentiment Index, which registered an overall score of 63, down three points from the previous quarter. The survey shows a CRE market with improving capital conditions and steady fundamentals, but one still constrained by limited transaction activity, pricing uncertainty, and uneven momentum across sectors. (Full Q2 Report)

CRE Market Conditions

  • The Current Index registered 61, down five points from Q1 2026, while the Future Index posted a score of 64, down three points from the previous quarter. (RER News Release, May 22)
  • Compared to one year ago, sentiment has improved: current conditions are up 11 points, future conditions are up six points, and overall conditions are up nine points. (Full Q2 Report)

Topline Findings

  • The Q2 Sentiment Index’s results reflect a market caught in stalemate, where capital is abundant, debt is open, and fundamentals are holding, yet transactions remain stuck behind a wide bid-ask spread. Sellers are refinancing rather than listing, geopolitical shocks have delayed an otherwise visible recovery, and a K-shaped dynamic is widening the gap between well-capitalized players and those running short on equity. The mood is patient, not pessimistic: a ‘decaffeinated’ recovery that participants believe will accelerate once pricing clarity returns.
  • Beneath the headline numbers, performance is increasingly defined by where firms are and what they own. Top-quartile markets and assets are pulling decisively away from the rest, with industrial, lodging, data centers, and high-quality retail running hot, while multifamily continues to absorb its supply overhang, and office remains sharply bifurcated between trophy assets and everything else. Across every sector, AI is emerging as both a demand driver and an operational force multiplier, reshaping where capital flows and how participants underwrite the next cycle.
  • A majority (53%) of respondents believe asset values are relatively unchanged compared to a year ago, while 32% feel they are higher and 15% think values have declined. Looking ahead, the outlook is overall optimistic: 54% expect asset prices to rise over the next year, 37% believe asset values will remain stable, and only 9% anticipate that values will decrease.
  • Perceptions on equity capital are split, with 24% believing availability is worse compared to a year ago, 33% thinking it is better, and 43% feeling it is the same. On the other hand, sentiment around debt capital is positive, as 69% said the availability of debt capital has improved from last year. Looking forward, 51% of respondents believe that equity capital availability will be better in one year, and 31% believe debt capital availability will be better.

Roundtable View

  • “Commercial real estate is on stronger footing than it was a year ago, but the recovery is still uneven,” said Jeffrey DeBoer, President and CEO of The Real Estate Roundtable. “Debt is available, values are stabilizing, and fundamentals are holding in many sectors. But transactions remain limited, equity capital is still cautious, and performance varies sharply by market and asset class.” (RER News Release, May 22)
  • “Now is the time for policies that encourage investment and capital formation—not new barriers that make it harder to build, finance, and modernize the real estate that supports housing, jobs, communities, and economic growth,” DeBoer added.

Data for the Q2 survey was gathered in April by Chicago-based Ferguson Partners on RER’s behalf.

House Passes Landmark Housing Bill, Sending Bipartisan Package Back to Senate

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The House passed the amended 21st Century ROAD to Housing Act on Wednesday by a vote of 396-13, sending the bipartisan housing package back to the Senate for final consideration. The legislation includes major reforms to expand housing supply, modernize federal housing programs, reduce regulatory barriers, and removes the Senate bill’s unconstitutional forced-sale mandate targeting build-to-rent (BTR) housing. (Politico | The Hill, May 20)

State of Play

  • House Financial Services Committee Chairman French Hill (R-AR) and Ranking Member Maxine Waters (D-CA) led months of bipartisan negotiations over the landmark housing package, navigating extensive back-and-forth among the White House, House leadership, and the Senate. (View Bill Text |  One-Pager | Section-by-Section ) 
  • The White House indicated it will back the House version of the bill, as the legislation moves to the Senate for final approval. (White House SAP, May 20 | CNBC)
  • The House-passed version amends the Senate-approved legislation, addressing concerns raised by House members and industry stakeholders, while preserving core reforms to streamline housing development, improve affordability, encourage new construction, update outdated HUD programs, restore critical community banking provisions, and eliminate burdensome regulatory barriers. (House Financial Services Committee Press Release, May 20)
  • Chairman Hill said, “Today, we proved Washington still works. After months of bipartisan, bicameral negotiations—and with the partnership of the Trump Administration—the House delivered to make housing more accessible and affordable for American families.”(House Financial Services Committee Press Release, May 20)
  • Ranking Member Waters added, “I am beyond proud of this legislation and the benefits it will bring to all of our cities, counties and states. The Senate must meet this moment with the same urgency and determination and quickly pass this bill.” (Rep. Waters Press Release, May 21)
  • In a joint statement before the House vote, Senate Banking Committee Chairman Tim Scott (R-SC) and Sen. Elizabeth Warren (D-MA) said there is “still work to be done” on a final bill. (Senate Banking Committee Press Release, May 20)
  • Chairman Hill urged Senate negotiators to support the amended House bill, calling it “the best landing spot for the two chambers” and saying it reflects both chambers’ priorities and their shared commitment to a “bicameral bipartisan housing bill.” (Watch–Fox News | Roll Call, May 21)

What’s In the Bill

  • The House-passed bill preserves the core housing supply and affordability provisions in the Senate package, including reforms to streamline environmental reviews, reduce barriers to new construction, modernize HUD programs, support manufactured housing, and encourage local zoning and land-use reforms. (Bipartisan Policy Center, May 20)
  • The most significant change is the removal of the Senate’s unconstitutional seven-year forced-sale mandate for BTR housing, which would have required certain owners to sell newly built single-family rental homes after seven years. (Axios, May 21)
  • Both Chairman Hill and Ranking Member Waters raised concerns about the provision’s constitutionality this week during their floor statements and an appearance on CNBC’s Squawkbox. (SquawkBox, May 19 | Roll Call, May 21 | Rep. Waters Floor Statement, May 19)
  • The bill still limits large institutional investors—defined as entities controlling at least 350 single-family homes—from buying additional single-family homes. However, it includes exceptions for BTR homes, newly constructed or renovated homes, rental conversions, and homes sold by another large institutional investor that already owned the property or acquired it in compliance with the bill. (Bisnow, May 20)
  • The bill also restores critical community banking provisions and includes measures to expand community lending, support transit-oriented development, improve federal tools for renters and homeowners, and convert abandoned buildings into housing.
  • Key provisions include:
  • Manufactured housing reforms to eliminate the outdated 1974 “permanent chassis” requirement for manufactured homes, which supporters estimate could reduce production costs by thousands of dollars per unit.
  • Zoning incentives to provide grants to local governments that adopt “pattern books” of pre-approved housing designs to speed up construction.
  • Permitting and development reforms to reduce delays, streamline environmental reviews, and lower barriers to new housing production.
  • Community lending and housing finance tools to support local development capacity, expand access to housing, and strengthen federal housing programs.

Roundtable Advocacy

  • The Real Estate Roundtable (RER) strongly endorsed the House amendment, which advances several housing supply and affordability reforms RER has long championed. (RER Statement | May 20)
  • “The latest amendment is focused where it should be — on increasing housing supply,” said RER President and CEO Jeffrey D. DeBoer. “Its sections to boost manufactured housing; help support renters interested in home ownership; build more homes in Opportunity Zones; streamline excessive environmental reviews that delay residential construction; encourage transit-oriented development; and promote much-needed land-use and zoning reforms, among other provisions, all add up to a comprehensive and robust package of smart housing policy.” (RER Statement | May 20)
  • Over the last several months, RER has led efforts to raise constitutional concerns about the Senate’s forced-sale mandate, including through a white paper by former U.S. Solicitor General Paul Clement, which characterized the provision as an unprecedented federal market intervention and outlined a “triple threat” to the U.S. Constitution. (RER’s One Pager, May 18 | RER Letter, May 12 | Roundtable Weekly, April 17)
  • More than 125 housing advocacy and industry groups supported the House amendment, urging lawmakers to advance legislation that would modernize outdated housing programs, reduce barriers to development, and increase flexibility for local communities. (Coalition Letter, May 18)
  • Following House passage, RER joined 10 other national housing organizations in commending House leadership for their work, while urging the Senate to swiftly pass the revised Act, calling it one of the most significant housing proposals in a generation. (Statement May 20)

What’s Next

  • The legislation now returns to the Senate, where lawmakers will determine whether to accept the House-passed package or pursue additional changes. With Congress out next week for recess, the earliest the Senate could take up the bill is June.
  • Sens. Scott and Warren have indicated they are not ready to accept the House-passed bill as-is and continue to push for the Senate-approved text. (Politico, May 21)
  • Neither Senate Majority Leader John Thune (R-SD) nor Senate Minority Leader Chuck Schumer (D-NY) has publicly indicated whether they will support the House-amended package. (Politico, May 21)

RER and its coalition partners will continue working with lawmakers as the housing bill moves back to the Senate to ensure the final package remains focused on increasing housing supply, improving affordability, protecting private property rights, and supporting the capital needed to build more homes nationwide

Housing Supply Push Gains Momentum with New Tax and Regulatory Proposals

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Federal policymakers offered new measures aimed at boosting housing supply this week, including bipartisan tax legislation to encourage rental construction and new Department of Housing and Urban Development (HUD) recommendations to reduce state and local regulatory barriers to homebuilding.

Rental Housing Investment Act

  • Reps. Claudia Tenney (R-NY), Linda Sánchez (D-CA), Darin LaHood (R-IL), and Jimmy Panetta (D-CA) introduced the Rental Housing Investment Act, bipartisan legislation to increase the supply of long-term rental housing by modernizing the tax code and incentivizing new construction. (Press Release, May 21)
  • The bill would allow builders to immediately deduct up to $150,000 per rental unit in construction costs for qualifying long-term residential rental housing developments, with an increased deduction of up to $250,000 per unit for qualifying affordable housing projects.
  • The legislation includes safeguards to ensure properties remain in long-term rental use and would apply to newly constructed housing placed in service after enactment.
  • “This bipartisan legislation takes a practical, market-driven approach to expanding housing supply, reducing development costs, and helping make housing more affordable for hardworking Americans,” said Rep. Tenney. (Press Release, May 21)
  • The bill’s bipartisan co-sponsors emphasized that high construction costs and limited rental supply are driving affordability challenges in communities across the country.
  •  A similar bill was previously introduced in the Senate by Sen. Lisa Blunt Rochester (D-DE). A Tax Policy Advisory Committee (TPAC) panel will discuss the bill and other housing tax incentives at The Real Estate Roundtable’s Annual Meeting in June.

HUD Regulatory Best Practices

  • HUD Secretary Scott Turner said the agency is encouraging state and local partners to review their regulations and policies to “lower the cost to build and enable more efficient housing supply growth.”
  • HUD noted that regulatory costs account for more than $100,000 of the final price of a new single-family home, while certain state and local green energy mandates can add up to $30,000 to construction costs. (HousingWire, May 20)

Housing Momentum

  • The housing debate was also front and center at an Axios event this week, where lawmakers highlighted growing bipartisan momentum around supply-side reforms, deregulation, zoning flexibility, and alternative construction methods. (Watch, May 20)
  • Rep. Ritchie Torres (D-NY) said “housing is having a moment in Washington, D.C.,” while Rep. Mike Flood (R-NE) emphasized that housing supply is also an economic development issue tied to workforce shortages and regional growth. (Axios, May 21)

These new legislative and regulatory actions reflect growing bipartisan attention to the core drivers of housing affordability: supply shortages, high construction costs, land-use barriers, lengthy permitting timelines, and financing constraints. RER will continue working with policymakers to advance supply-side reforms that encourage private capital, reduce construction barriers, and expand housing supply nationwide.

Congress, Agencies Focus on Infrastructure and Federal Assets

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Federal infrastructure policy was active on multiple fronts this week, as House policymakers advanced a major transportation package and the General Services Administration (GSA) led a multi-agency appeal for stronger funding authority to maintain the federal real estate portfolio.

Infrastructure

  • The House Transportation and Infrastructure Committee this week advanced the $580 billion BUILD America 250 Act by a 62-2 vote, marking an early step in the surface transportation reauthorization process ahead of the current law’s Sept. 30 expiration. (PoliticoPro, May 22)
  • The Senate is working on its own transportation bill, and Congress may need to extend current transportation programs beyond Sept. 30. (PoliticoPro, May 22)
  • House Natural Resources Chair Bruce Westerman (R-AR) praised the bill’s permitting provisions and said he hopes they will complement a broader permitting reform package he is negotiating with Democrats. (PoliticoPro, May 22)

Federal Real Estate Portfolio

  • GSA and 22 Cabinet departments and federal agencies urged congressional leaders this week to provide full access to the Federal Buildings Fund to support the preservation, repair, and management of the federal real estate portfolio. (GSA Press Release, May 21)
  • The agency also requested authority to raise its funding threshold from $3.96 million to $75 million, which it said would help strengthen its ability to manage federal real estate assets. (Letter, May 21)
  • GSA Administrator Edward C. Forst called the request “an overwhelming show of support” for giving the agency the resources needed to deliver results. (GSA Press Release, May 21)

Last week, President and CEO Jeffrey D. DeBoer joined Administrator Forst and JBG SMITH Chairman and CEO Matt Kelly in a Washington Times op-ed urging Congress to address the chronic underinvestment in the federal government’s real estate portfolio as the nation approaches its 250th anniversary. (Washington Times, May 13 | Roundtable Weekly, May 15)

House Releases Revised Housing Package Focused on Supply and Affordability

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U.S. Capitol building

House leaders this week released amended text of the Senate-passed 21st Century ROAD to Housing Act, preserving major pro-housing provisions aimed at increasing supply, improving affordability, and expanding housing options across the country. The revised package is expected to receive a House vote next week, before returning to the Senate for final approval. (Politico | Bisnow | The Hill, May 14)

State of Play

  • House Republican leaders continued reworking the Senate-passed 21st Century ROAD to Housing Act this week, even as President Donald Trump publicly urged Congress to pass the Senate bill as written. (Politico, May 11)
  • Speaker Mike Johnson (R-LA) said Friday that he still intends for the House to vote on changes to the Senate’s housing package, despite opposition from White House officials and Senate Republicans. “We’re focused on producing a housing bill that meets all the objectives,” Speaker Johnson said. “It’ll be bipartisan, bicameral.” (Politico, May 15)
  • House Financial Services Committee Chairman French Hill (R-AR) and Ranking Member Maxine Waters (D-CA) released the House’s amended text Thursday, with leadership aiming to bring the bill to the floor next week. (The Hill, May 14)
  • Rep. Hill said the bipartisan amendment reflects concerns raised by members and stakeholders, adding that it “cuts unnecessary barriers to new home construction, modernizes Department of Housing and Urban Development (HUD) programs, and allows banks to more freely deploy funding into their communities.” (Rep. Hill Statement, May 14)

  • Speaking to reporters Friday, Rep. Hill said the House bill addresses legal concerns raised by the Senate’s investor restriction language, including its forced-sale requirement for certain build-to-rent homes. “It’s in the bill in the right way. I think it removes some of the legal challenges that we felt that were in the structure of the Senate bill. We think this has made a better bill.” (Politico, May 15)

  • Rep. Waters said the updated bill “restores key provisions to hold institutional investors accountable and protect renters, while expanding access to affordable housing opportunities for families across the country.”  (Rep. Waters Statement, May 15)
  • In a statement following the release, RER said the amended bill makes significant improvements by removing the forced-disposition requirement that would have raised serious constitutional concerns, chilled investment in new rental housing, prevented the construction of thousands of homes, and worsened supply constraints in markets across the country. (RER Statement, May 14)

  • Progressive and conservative groups alike have cited numerous benefits that single-family rental (SFR) owners and builders deliver to U.S. housing markets, including increasing supply, maintaining and improving homes, and providing opportunities for families to live in communities with strong education systems where homeownership may be out of reach. (Progressive Policy Institute | Competitive Enterprise Institute, February 2026) (Roundtable Weekly, April 17 | April 10)

Key House Revisions

  • The package includes broad housing supply and affordability reforms to reduce barriers to new construction, support manufactured housing innovation, streamline environmental reviews, and modernize HUD programs.
  • The updated House text removes the Senate bill’s forced-disposition requirement for build-to-rent housing, while retaining restrictions and enforcement provisions related to future single-family home acquisitions by large institutional investors. (The Hill, May 14)
  • Additionally, it would create grant programs for converting abandoned buildings into housing, expand community lending, and strengthen tools to encourage local zoning and pro-housing policies.

Roundtable Advocacy

  • RER and broad housing coalitions have consistently emphasized that housing affordability is driven by supply shortages, construction costs, and mortgage rates—not institutional ownership levels—and that restricting institutional capital would only make it harder to meet the nation’s growing housing needs. (Roundtable Weekly, Jan. 9 | Jan. 16 |  Jan. 23 | Feb. 27| March 6 | March 13 | March 20 | March 27 | April 3 | April 10 | April 17 | April 24 | May 1 | May 8)
  • Following the release of the amended text, RER and a broad housing coalition urged Congress to pass the bill quickly, calling it a major opportunity to expand supply, improve affordability, and broaden housing choice. (Coalition Letter | Coalition Statement | May 14)
  • The housing crisis cannot be solved without building more affordable homes of every type, in every market and for every stage of life — including rental housing, workforce housing and paths to homeownership,” said RER President & CEO Jeffrey DeBoer. “Restricting capital will only make that shortage worse. Increasing supply is the path forward.” (RER Statement | May 14)

HUD Raises Concerns

  • HUD Secretary Scott Turner wrote to congressional leaders Friday to remove parts of the House-amended bill related to institutional investor restrictions and a new tenant hotline, warning they could create significant operational challenges for HUD and expand the department’s role in state and local housing matters. (PoliticoPro, May 15)
  • Sec. Turner also testified before House and Senate appropriators this week on the administration’s fiscal 2027 HUD budget request, emphasizing the need to reduce regulatory barriers, streamline permitting, and lower housing production costs. (Politico, May 12)
  • Sec. Turner cited local zoning restrictions, environmental reviews, and federal regulations as major drivers of housing costs, while lawmakers in both parties raised concerns about proposed HUD funding cuts. (House Appropriations Subcommittee Hearing, May 12)
  • Lawmakers also highlighted Opportunity Zones (OZs) and public-private partnerships as housing production tools. Sec. Turner defended OZs as “very transformative,” saying public-private partnerships are “crucial and key” to increasing affordable housing supply and revitalizing communities. (Senate Appropriations Subcommittee Hearing, May 14)

RER and its coalition partners appreciate the bipartisan work of House and Senate leaders and urge swift passage of the housing bill to expand access to homeownership and rental housing opportunities nationwide.

Op-Ed Calls for Action on Aging Federal Buildings

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Real Estate Roundtable (RER) President and CEO Jeffrey D. DeBoer joined General Services (GSA) Administrator Edward C. Forst and JBG SMITH Chairman and CEO Matt Kelly in a Washington Times op-ed this week, urging Congress to address chronic underinvestment in the federal government’s real estate portfolio as the nation approaches its 250th anniversary. (Washington Times, May 13)

Federal Building Backlog

  • The op-ed warns that the federal government is “depriving one of its largest real estate portfolios of investment,” eroding asset value and driving up long-term costs for taxpayers. (Washington Times, May 13)
  • The authors note that federally owned buildings are deteriorating because GSA lacks timely access to resources for basic upkeep, even as agencies pay rent into the Federal Buildings Fund. (Washington Times, May 13)
  • Administrator Forst reinforced that message during a May 13 Senate Appropriations hearing on GSA’s FY2027 budget request, urging Congress to give GSA full annual access to the fund, stop redirecting it to non-GSA programs, and raise the prospectus threshold for routine repairs. (Senate Appropriations Subcommittee Hearing, May 13)
  • Administrator Forst testified that Congress has diverted $15.6 billion from the Federal Buildings Fund since 2011, while GSA’s repair backlog has increased by 408% to roughly $50 billion, leaving nearly half of its inventory in “fair” or “poor” condition. (Forst Testimony, May 13 | Legis1, May 7)

Why It Matters

  • The op-ed contrasts private-sector real estate management with a federal process that can take more than 400 days just to approve routine repairs—nearly as long as it took to build the Empire State Building. (Washington Times, May 13)
  • “Delayed spending is value destruction,” the authors write. “In the federal system, delays are built into the process.” (Washington Times, May 13)

The op-ed urges Congress to align resources, incentives, and execution authority so GSA can preserve asset value, support federal workers, and protect historic public buildings.

Roundtable Leaders Recognized on Commercial Observer’s 2026 Power 100 List

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Commercial Observer this week released its 2026 “Power 100” list of leading commercial real estate executives, recognizing numerous Real Estate Roundtable (RER) members, board leaders, and RER President and CEO Jeffrey DeBoer among the industry’s most influential voices. (Commercial Observer, May 12)

Power 100 List

  • Commercial Observer’s annual list highlights the executives and organizations shaping the future of commercial real estate across capital markets, development, housing, office, data centers, and emerging investment trends.
  • In introducing this year’s list, Commercial Observer noted, “The story of real estate over the last year has been its own crazy quilt. One big strand of the story has been the surge in artificial intelligence, and the incumbent data centers, power sources, and office space necessary to cater to it.” (Commercial Observer, May 12)

Roundtable Leaders Recognized

  • Commercial Observer highlighted DeBoer’s work in Washington to prevent major federal legislation from undermining real estate investment, while also advancing key industry priorities, including extending the Opportunity Zone program through 2032 and increasing state allocations of Low-Income Housing Tax Credits. (DeBoer’s listing)

DeBoer also emphasized the importance of private capital in meeting the nation’s housing needs. “The demand is constantly increasing for housing, so you have to have a dynamic supply chain that meets the demand, and part of that requires capital,” he said. “Where does capital come from if you want to meet that challenge

Housing Supply Efforts Continue as ROAD Act Path Remains Uncertain

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The path forward for the 21st Century ROAD to Housing Act remains uncertain as House Republican leaders, the White House, and key committee leaders continue working through possible changes to the Senate-passed housing package. (Punchbowl News, May 8)

State of Play

  • This week, House Financial Services Committee leadership continued efforts to find a path forward on a House-amended version of the Senate-passed housing bill, but a floor vote soon after lawmakers return from recess next week now appears unlikely. (PoliticoPro, May 6 | Politico, May 4)
  • House leaders are still working through legislative language and seeking White House support before moving forward. They have made clear the Senate bill cannot pass the House as written. (PoliticoPro, May 6)
  • Section 901 remains at the center of the debate, which would limit the role of large investors in the single-family housing market and impose a seven-year forced-sale requirement on certain build-to-rent homes. (Punchbowl News, May 8)
  • President Trump privately raised concerns with the Senate-passed bill, despite earlier White House support for the package, and was reportedly close to publicly objecting to the Section 901 language late last week. (Politico, May 4)
  • The developments follow President Trump’s recent comments to Rep. Zach Nunn (R-IA), a member of the House Financial Services Committee, that he wants the legislation moving forward. (Roundtable Weekly, May 1)
  • Senate Majority Leader John Thune (R-SD) said last week that the Senate housing bill is “stuck” and will likely require direct White House involvement to resolve the standoff with House GOP leadership. (Politico, May 4)

RER Advocacy

  • RER and broad housing coalitions have consistently emphasized that housing affordability is driven by supply shortages, construction costs, and mortgage rates—not institutional ownership levels—and that restricting institutional capital would only make it harder to meet the nation’s growing housing needs. (Roundtable Weekly, Jan. 9 | Jan. 16 |  Jan. 23 | Feb. 27| March 6 | March 13 | March 20 | March 27 | April 3 | April 10 | April 17 | April 24 | May 1)
  • Last week, RER and a broad housing coalition urged Congress to fix the Senate-passed 21st Century ROAD to Housing Act by removing language that would undermine build-to-rent housing construction and weaken the bill’s goal of expanding housing supply. (Letter, April 30)
  • The groups called on Congress to remove Section 901, pass a pro-supply housing package, and allow BTR developers and workers to get back to building the new rental homes the country urgently needs. (Roundtable Weekly, May 1)

HUD Eases Reviews

  • HUD announced this week that it is revising environmental review requirements in the FHA Multifamily Accelerated Processing (MAP) Guide, eliminating outdated provisions that HUD said have added costs, delays, and complexity for lenders and developers seeking FHA-insured multifamily financing. (HUD Press Release, May 4)
  • The updates are intended to reduce development costs, eliminate operational inefficiencies, and streamline requirements. (AHF, May 5)
  • HUD Secretary Scott Turner said the changes are aimed at “fixing policies that have made housing expensive and difficult to build,” adding that HUD is cutting outdated requirements, reducing costs and delays, and putting FHA financing back to work to support housing production and affordability.  (HUD Press Release, May 4)

Workforce Housing Legislation

  • The proposal is estimated to finance approximately 344,000 affordable rental homes and would allow state housing finance agencies to allocate credits through a competitive process similar to the Low-Income Housing Tax Credit (LIHTC). (Novograd, May 6)
  • The bill would also give states flexibility to transfer middle-income housing allocations to LIHTC and allow projects to combine both credits, helping make more mixed-income and affordable housing developments financially feasible.

RER and its coalition partners continue to urge Congress to advance a pro-supply housing package that expands production, preserves capital formation, and avoids policies that would make new rental homes harder to finance and build.

Federal Oversight of Data Centers Ramps Up

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The North American Electric Reliability Corporation (NERC) issued its highest-level grid alert this week, warning that data centers, crypto mining operations, and other large “computational loads” are creating new reliability risks as electricity demand accelerates across the country.  (NERC, May 4)

Why It Matters

  • NERC is the international regulatory “grid watchdog” that ensures reliability and security of North America’s bulk electricity system.
  • NERC’s Level 3 Essential Action Alert directs grid operators, transmission planners, and utilities to address risks from large loads that can unexpectedly disconnect from the grid or create significant power swings within seconds. (NERC, May 4)
  • The alert follows incidents involving data centers across the East Coast and Texas, where large loads unexpectedly dropped off the grid, raising concerns about frequency, voltage, and overall power system reliability. (Utility Dive, May 5)
  • A Union of Concerned Scientists representative called the alert a “big deal,” noting it is only the third Level 3 alert in NERC’s history. (PoliticoPro, May 4)
  • The alert signals a broader shift toward future data center regulations that could require such large power users to register with NERC, just as entities that own and operate the electric grid must currently do. (PoliticoPro, May 4). Entities that register with NERC must comply with its grid reliability standards.
  • NERC also released voluntary risk-mitigation guidelines while it develops formal reliability standards for data centers and other large loads. (E&E News May 4)
  • Meanwhile, the alert outlines “essential actions” for current NERC registrants, such as stronger modeling of computational loads, more frequent stability studies, and installation of fault-recording equipment to better understand how data centers behave during grid disturbances. Grid planners are asked to respond by Aug. 3. (NERC, May 4)
  • Separately, the Federal Energy Regulatory Commission (FERC) is drafting a proposal that could provide more federal oversight on how large data centers must connect to the power grid. (Latitude Media | E&E News, May 4)

Data Centers & Electricity Demand Growth

  • NERC’s warning comes as data centers face growing scrutiny over their energy use, infrastructure impacts, and effects on electricity costs. (NYT, April 27)
  • Eleven states have proposed legislation since late 2025 to restrict or ban data center development, while Sen. Bernie Sanders (I-VT) and Rep. Alexandria Ocasio-Cortez (D-NY) have introduced legislation to pause new data center construction nationwide. (Axios, April 5)
  • At a House Energy subcommittee hearing last week, witnesses argued that large-load customers such as data centers should cover the full incremental costs of the generation, transmission, and distribution upgrades needed to serve them. (Politico | Hearing, April 30)
  • Separately, the U.S. Green Building Council (USBGC) and eight partner organizations launched the Greening AI Data Centers Coalition to coordinate on non-governmental sustainability standards for AI data centers, including performance criteria for energy, carbon, water, waste, biodiversity, and community impact. (USGBC, April 22)
  • Data centers are not the only source of rising power demand, but they are accelerating a broader challenge: the nation needs more generation, more transmission, faster permitting, and better grid planning to support economic growth, housing development, and U.S. technological leadership. (NYT, April 27)

Electricity Costs & Infrastructure

  • The Chamber noted that rising demand alone does not determine electricity costs. States with major data center hubs, including Virginia, Texas, and North Carolina, continue to have electricity rates below the national average, underscoring the importance of generation mix, infrastructure capacity, and state-level policy decisions. (Chamber of Commerce, May 5)
  • Infrastructure bottlenecks are adding to the challenge. Wood Mackenzie estimates the U.S. electrical equipment market tied to data centers could more than triple from $20 billion to $65 billion by 2030, while shortages of transformers and other equipment have stretched lead times to 18 to 36 months and pushed prices up as much as 20 percent. (Wood Mackenzie, April 28)

Roundtable View

  • The Real Estate Roundtable (RER) has consistently emphasized that grid reliability is essential to expanding the nation’s housing supply, spurring new real estate development, supporting economic growth, and advancing U.S. technological leadership.
  • RER supports a national “all of the above” energy strategy that invests in building efficiency, grid modernization, faster permitting, and innovation across all energy sources. (RER’s Spring Policy Priorities-Energy)

Policymakers should continue advancing permitting reforms to accelerate construction of transmission lines, pipelines, and generation plants—helping reduce delays, expand

Coalition Urges Congress to Eliminate New York’s Antiquated “Scaffold Law” in Transportation Package

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The Real Estate Roundtable (RER) and a coalition of real estate, construction, and insurance organizations urged congressional leaders this week to include the Infrastructure Expansion Act (H.R. 3548) in upcoming surface transportation legislation. The bill would prevent property owners, contractors, and insurers from facing automatic liability in lawsuits tied to federally funded infrastructure and transportation projects. (Letter, May 6)

Why It Matters

  • The coalition warned that New York’s “Scaffold Law” imposes an absolute liability standard on property owners and general contractors for gravity-related worksite injuries, regardless of fault, worker conduct, or safety precautions taken by responsible employers.
  • Unlike New York, every other state uses a comparative negligence standard that allocates responsibility based on the conduct of all parties involved. (Yahoo, April 6)
  • H.R. 3548 would apply a uniform national liability standard to federally funded infrastructure projects, helping ensure federal tax dollars are used efficiently for roads, bridges, transit, and other projects critical to economic growth and competitiveness.
  • The coalition letter estimates the bill could save up to $2.3 billion in the Highway Trust Fund over five years by preempting New York’s absolute liability standard on federally funded projects. (Letter, May 6)

Cost Impact

  • The letter states that insurance costs in New York are typically double those in other states, with many insurers withdrawing from the construction market because of the open-ended exposure created by absolute liability.
  • According to a report from the Building Trades Employers Association, estimates that reforming New York’s liability standard could save taxpayers $280-$560 million for the Penn Station redevelopment and $550-$880 million for the Port Authority Bus Terminal project.
  • Shifting every $100 million from insurance costs back into productive infrastructure investment could support roughly 600 full-time jobs. (Letter, May 6)

Roundtable Advocacy

  • RER has long supported federal legislation to address the cost and liability impacts of New York’s Scaffold Law on federally assisted infrastructure projects.
  • In 2018, RER and a broad coalition of contracting, insurance, and real estate organizations urged Congress to pass an earlier version of the Infrastructure Expansion Act, sponsored by former Rep. John Faso (R-NY). (Roundtable Weekly, Jan. 2018 | Feb. 2018)

As Congress considers the next surface transportation package, RER and its coalition partners will continue urging policymakers to advance commonsense reforms that protect taxpayer dollars and help move critical infrastructure projects forward.