News Type: Roundtable Weekly

Government Shutdown Continues

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The federal government shut down ten days ago, with no resolution in sight. (Punchbowl News, Oct. 9 | Oct. 10)

State of Play

  • On Thursday, Senate Democrats rejected for the seventh time, Republicans’ proposal to extend government funding through Nov. 21. (Roll Call, Oct. 8)
  • In response, GOP senators blocked Democrats’ competing plan to extend Affordable Care Act premium tax credits, reverse Medicaid cuts, and limit President Trump’s authority to rescind congressionally approved funds. (Punchbowl News, Oct. 7)
  • Top Democrats, led by Senate Minority Leader Chuck Schumer (D-NY), are calling for bipartisan negotiations on health care, arguing that Republicans face growing pressure to renew expiring health care subsidies as part of any funding deal. (PoliticoPro, Oct. 6)
  • House Speaker Mike Johnson (R-LA) said he will not recall the House to Washington until Democrats agree to work with Republicans on a funding plan. (NPR, Oct. 9)
  • Senate Majority Leader John Thune (R-SD) said he is open to discussions on health care tax credits only after the government reopens. “We said we’re willing to have those conversations, but it starts with ending the shutdown,” Sen. Thune said. (PoliticoPro, Oct. 6)

CRE Impact

IRS building in Washington, DC
  • While the shutdown poses broader economic risks, its immediate impact on commercial real estate remains limited, as most operations continue unaffected. A prolonged closure, however, could disrupt HUD rental subsidies, further delay economic data, and weigh on investor confidence, according to Marcus & Millichap. (Connect CRE, Oct. 7 | CNBC, Oct. 8)
  • The National Flood Insurance Program (NFIP) cannot issue new policies or renewals during the shutdown, threatening thousands of real estate transactions. The Real Estate Roundtable (RER) supports a long-term, sustainable NFIP reauthorization to avoid recurring market disruptions. (Roundtable Weekly, Sept. 19)
  • The shutdown is also stalling work on bipartisan priorities such as fiscal 2026 spending bills, energy legislation, and permitting reform. “One of the things that’s not getting done while the government is shut down is an appropriations process that allows us to fund the government the old-fashioned way, in the light of day,” said Sen. Thune. “We aren’t working on permitting reform, which should be a bipartisan priority.” (E&E News, Oct. 6)
  • At the IRS, nearly half the workforce has been furloughed as of Wednesday, though the agency will continue implementing President Trump’s recent tax cuts. (Politico, Oct. 8 | CNBC, Oct. 8)
  • The Cybersecurity and Infrastructure Security Agency (CISA) is operating with roughly one-third of its staff, heightening concerns about protections for the electric grid, water systems, and critical infrastructure amid rising cyber threats. (Washington Post, Oct. 2)
  • “Government shutdowns and temporary extensions of essential programs like the NFIP create avoidable uncertainty that disrupts real estate markets and undermines economic confidence,” said RER President & CEO Jeffrey DeBoer. “Congress should act responsibly by providing long-term solutions that protect communities and the American people, encourage investment, and sustain growth.” (Roundtable Weekly, Oct. 3)

The longer the shutdown persists, the greater the risk of delayed projects, stalled investment, and uncertainty across real estate markets that depend on reliable federal programs.

Record-Level Investments Aim to Enhance Grid Reliability

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Unprecedented demand for electricity is prompting major private sector investments to shore up the grid’s security and reliability, amid the Trump Administration’s cancellation of Biden era clean energy funds.

Billions in Private Investments

  • Investor-owned electric companies plan to invest an unprecedented record-high $208 billion in capital projects this year — a $30 billion increase from 2024 — to modernize transmission systems, expand capacity, and manage consumer costs, according to new Edison Electric Institute (EEI) data. (Axios, Oct. 7)
  • “Our new data shows how our industry is strengthening the energy grid with real investments—in jobs, critical infrastructure, and communities across the nation,” Edison Electric Institute President and CEO Drew Maloney said in a statement. (Axios, Oct. 7)

Major Energy Policy Shift

  • Meanwhile, the Trump administration is cutting federal support “to get low-cost renewable projects on the grid”—cancelling billions in Biden administration project funding—and “pinning many of its promises of energy affordability on a nuclear moon shot.” (PoliticoPro, Oct. 6).
  • The Department of Energy (DOE) announced millions to “reinvigorate America’s coal industry” (Release, Sept. 25), while the Department of the Interior (DOI) has opened up more federal lands to coal leasing. (Release, Sept. 29)
  • The Environmental Protection Agency (EPA) is pushing for a natural gas pipeline “vital to New England’s grid stability.” (Release, Aug. 6)
  • The sharp policy swing has some members of Congress calling for a fuel-agnostic, all-of-the-above national energy strategy. “We need every electron we can get if we want to be energy dominant. To do that, we should take every electron,” said Sen. John Curtis (R-UT). (PoliticoPro, Oct. 6)

The Drivers

  • Electricity demand is spiking from a “perfect storm” of multiple forces:
  • AI and Data Centers: Expected to account for nearly half of global demand growth through 2030. (IEA 2025)
  • EV Charging: Electric vehicles are expected to raise global power demand 6–8% by 2035 (IEA 2024)
  • Manufacturing Reshoring: New U.S. facilities for semiconductors, batteries, and critical minerals production will significantly increase industrial load (CSIS 2024)
  • Crypto Mining: U.S. Bitcoin mining consumes electricity equal to powering 6 million homes (EIA 2024)
  • Building Electrification: 40% of U.S. buildings now use electric heating, driven by codes, tenant preferences, and investor sustainability demands (BOMA 2023)

Permitting Reform

  • Permitting reform continues to be a top bipartisan priority on Capitol Hill, as lawmakers debate how best to reform the federal approval process for energy infrastructure projects. (Utility Dive, Sept. 18 | Roundtable Weekly, Oct. 2024)
  • Last month, the bipartisan House Problem Solvers Caucus released a framework to speed construction of transmission lines, pipelines, and power projects to meet surging energy demand. (PoliticoPro, Sept. 18)
  • In September, the House Natural Resources Committee held a legislative hearing on a trio of bipartisan permitting reform bills—including Chair Bruce Westerman’s (R-AR) SPEED Act, aimed at streamlining the permitting process. “My goal is to have a big permitting bill sitting over at the Senate for them to consider with some bipartisan support.” (PoliticoPro, Sept. 18)
  • At an event last month, White House National Energy Dominance Council Executive Director Jarrod Agen said, “Probably the top priority for us from an energy perspective” is permitting reform to build transmission lines and pipelines. (E&E News, Sept. 8)
  • RER believes permitting reform is essential for advancing our economy’s energy transition. The current fragmented system of administrative reviews and approvals hinders the delivery of quick, low-cost, reliable electricity to our nation’s homes and commercial buildings. (Roundtable Weekly, March 7)

Energy supply, grid reliability, and infrastructure investment will be a central topic at RER’s Fall Meeting (Roundtable-level members only) on Oct. 27–28 in Washington, D.C.

New Lumber Tariffs Spark Housing Affordability Concerns

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The Trump administration announced new trade measures this week aimed at building materials. The plan imposes a 10% duty on imported softwood lumber and a 25% tariff on kitchen cabinets and vanities—set to rise to 50% in 2026. The added cost burden threatens to ripple through the housing market, raising barriers to affordability at a time of heightened demand. (White House, Sept. 29) (NYT, Oct. 2)

State of Play

  • The new tariffs come on top of existing surcharges, marking a sharp escalation in trade measures against foreign suppliers of housing and construction products. (GlobeSt. Oct. 1)
  • President Trump’s tariff proclamation found that current wood imports “are weakening our economy, resulting in the persistent threats of closures of wood mills and disruptions of wood product supply chains” and putting at risk the United States’ ability “to meet demands for wood products that are crucial to the national defense and critical infrastructure.” (White House Action, Sept. 29)
  • Analysts warn that the tariffs could exacerbate the housing shortage by slowing construction, and, combined with earlier steel and aluminum tariffs, undermine the momentum that Fed rate cuts might otherwise provide. (NYT, Oct. 2)
  • The U.S. imports roughly one-third of the lumber it consumes because domestic production cannot meet demand. Canada supplies nearly 85% of U.S. lumber imports. (NAHB, Sept. 30)

CRE & Affordable Housing

  • Tariffs may present several challenges for commercial real estate, including increased construction costs, potential project delays, and heightened uncertainty among investors. (CBRE, March 19 | Roundtable Weekly, April 4)
  • “These new tariffs will create additional headwinds for an already challenged housing market by further raising construction and renovation costs,” said National Association of Home Builders (NAHB) Chairman Buddy Hughes.
  • Builders caution the measures will add to affordability pressures for renters and homebuyers already facing tight supply. (CRE Daily, Oct. 1)
  • Last month, it was reported that President Trump may declare a national housing emergency this fall. (Roundtable Weekly, Sept. 12)
  • As part of the broader effort to address the nation’s housing shortage, property conversions are gaining momentum. Manhattan alone launched 4.1 million square feet across 15 projects through August 2025, the fastest pace since 2008, according to a recent Cushman & Wakefield report. (GlobeSt., Oct. 2)
  • RER urges federal policymakers to support incentives for these transformative projects, helping to meet the nation’s growing housing demand. (RER Annual Report – Housing 2025)

RER will continue to engage with policymakers to reduce regulatory burdens and eliminate other obstacles that are impeding development and expand America’s housing infrastructure.

Treasury Issues Guidance on Rural Opportunity Zone Investments

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The Treasury Department and Internal Revenue Service (IRS) this week issued Notice 2025-50, providing guidance on Opportunity Zone (OZ) investments in rural areas under the One Big Beautiful Bill (OB3) Act. The notice designates 3,309 census tracts—about 38% of the OZ map—as rural, giving investors and developers clarity on how the new rules apply. (IRS, Sept. 30)

New Guidance

  • Rural definition: Any census tract outside a city or town with a population greater than 50,000—and not an adjacent urbanized area—qualifies as rural. (BisNow, Oct. 1)
  • 3,309 tracts designated: The notice identifies 3,309 rural OZ census tracts, representing about 38% of all OZs designated in 2018.
  • Lowered improvement threshold: Effective July 4, 2025, real estate projects in rural OZs must meet a more manageable 50% substantial improvement test—down from 100%—to qualify for OZ tax benefits. The substantial improvement test governs the level of new investment required, relative to the cost of the property.
  • The guidance applies only to the current OZ map. Treasury said definitions for future OZ designations, which will take effect in 2027, will be addressed separately. (PoliticoPro, Sept. 30)
  • The latest guidance enhances certainty for investors and developers seeking to expand housing and economic opportunity in rural America.

Roundtable Advocacy

  • The Real Estate Roundtable (RER) has long championed OZs as a transformative tool to drive economic growth and increase affordable housing in underserved communities. (Roundtable Weekly, April 4)
  • RER members have used OZ capital nationwide to finance multifamily housing, mixed-use developments, and life sciences facilities that support job creation and local tax revenues.
  • At the American College of Real Estate Lawyers (ACREL) Annual Meeting recently, RER President and CEO Jeffrey DeBoer and SVP & Counsel Ryan McCormick addressed the enhanced role of OZs in revitalizing communities. (Watch Video)
  • This week, RER’s Opportunity Zone Working Group met virtually with staff from Sen. Tim Scott (R-SC) office, the leading Congressional sponsor and advocate of OZs, to discuss next steps in the implementation of the OZ reforms and enhancements.

Why It Matters

  • Since 2017, OZs have spurred more than $120 billion in investment—much of it directed toward new housing, helping to expand supply, create jobs, and revitalize economically distressed areas.  (RER Annual Report 2025)
  • Housing impact: OZs accounted for 20% of all new multifamily units in 2023, up from 8% when the program began. (ULI, Sept. 22)
  • Economic impact: OZ incentives nearly doubled housing production in designated tracts from 2019 to 2024, generating more than 313,000 new residential addresses at relatively low fiscal cost. (Economic Innovation Group, March 11)

RER’s Tax Policy Advisory Committee (TPAC) and Opportunity Zone Working Group will continue to evaluate OZ changes, address technical issues, and ensure the industry’s voice is heard as Treasury and IRS implement the new law.

Government Shutdown: What It Means for CRE

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The federal government shut down on Wednesday—the first lapse since 2019—with no deal in sight. Both chambers are at an impasse after dueling stopgap funding bills failed again this week. (AP News, Oct. 2)

State of Play

  • Senate Democrats blocked Republicans’ “clean” Nov. 21 continuing resolution (CR). Republicans rejected Democrats’ version that included extending enhanced Affordable Care Act subsidies and reversing Medicaid cuts.
  • Senate Majority Leader John Thune (R-SD) and Minority Leader Chuck Schumer (D-NY) may meet Friday in their first one-on-one since the standoff began. Another round of votes is planned for Friday. (Punchbowl News, Oct. 2)
  • If Democrats block the GOP plan again, Majority Leader Thune is expected to adjourn the Senate until Monday, canceling Saturday votes, and force another vote on Monday. (Punchbowl News, Oct. 2)

CRE Impact

  • NFIP: The National Flood Insurance Program (NFIP) cannot issue new policies or renewals during the shutdown, threatening thousands of real estate transactions. The Real Estate Roundtable (RER) supports a long-term, sustainable NFIP reauthorization to avoid recurring market disruptions. (Roundtable Weekly, Sept. 19)
  • Senate Banking Committee Chair Tim Scott (R-SC) “remains committed” to funding the program and is “optimistic” Democrats will join Republicans to prevent a lapse in coverage during peak hurricane season, his spokesperson said. (Politico, Sept. 30)
  • Energy: The ENERGY STAR program has halted partner application processing, product list updates, and specification releases—stalling efficiency certifications important to building owners and tenants. Meanwhile, it remains unclear how the shutdown will affect EPA Administrator Lee Zeldin’s broader reorganization and regulatory timeline. (PoliticoPro, Sept. 30, Oct. 1 | NAHB, Oct. 1)
  • Housing: HUD is unable to access certain funds used to prevent evictions in its Tenant-Based Rental Assistance Program. Affordable housing initiatives also face delays due to the furloughing of program staff. (Politico, Sept. 30)
  • Construction: Fallout from the shutdown is also reverberating through the construction sector, where contractors warn that halting federal projects will ripple into private markets by raising costs and eroding confidence. (UtilityDive, Oct. 1)
  • Tax Policy & Treasury: Despite the shutdown, Treasury has said it will continue implementing President Trump’s tax law and deregulatory agenda, relying on multi-year funding streams. Its tax policy office will remain active, advancing the president’s tax cuts and regulatory rollbacks. Other Treasury operations—including debt management, collections, and oversight of financial markets will also continue. (PoliticoPro, Sept. 29)
  • “Government shutdowns and temporary extensions of essential programs like the NFIP create avoidable uncertainty that disrupts real estate markets and undermines economic confidence,” said RER President & CEO Jeffrey DeBoer. “Congress should act responsibly by providing long-term solutions that protect communities and the American people, encourage investment, and sustain growth.”

As the shutdown continues, mounting strain on real estate transactions, insurance coverage, and investment planning will intensify pressure on Congress to resolve the impasse.

New Visa Bill Addresses Construction Worker Shortage; White House Unveils “Trump Cards”

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Rep. Lloyd Smucker (R-PA) this week reintroduced the Essential Workers for Economic Advancement Act (H.R. 5494), bipartisan legislation aimed at expanding visa opportunities to address labor shortages in construction, hospitality, and other sectors. (Rep. Smucker Press Release)

Why It Matters

  • The Essential Workers bill proposes a new H-2C visa program for critical jobs that do not require a college degree but are essential to business operations and U.S. economic growth. (Coalition Statement, Sept. 17)
  • “Job creation and job preparation must go hand-in-hand,” Rep. Smucker said. “Investing in opportunities to strengthen our workforce and grow our economy is a win-win for American workers and businesses.” (Rep. Smucker Press Release)
  • There is an estimated shortage of 500,000 construction workers. Without additional labor, efforts to build more housing and address the nation’s affordability crisis will remain stalled. (Associated Builders and Contractors, Jan. 24)

Roundtable View

  • The Real Estate Roundtable (RER) commended the legislation.
  • “Now that the administration has controlled the emergency at the border, we need to address the nation’s affordable housing emergency—and we must build more supply to get out of it,” said Jeffrey D. DeBoer, RER President and CEO.
  • DeBoer continued: “The labor shortage is exacerbating the housing shortage … Congress should develop policies to increase our supply of construction workers so they can build all types of homes in communities across the country. The bipartisan Essential Workers for Economic Advancement Act is exactly the kind of smart response we need.” (Rep. Smucker Press Release, Sept. 23)
  • At the recent 2025 C5 + CCIM Global Summit in Chicago, DeBoer also remarked that a targeted construction visa program is essential to expand the labor force and increase housing supply.
  • 21 other business groups support the bipartisan Essential Workers bill, including the American Hotel & Lodging Association, Associated General Contractors of America, Business Roundtable, Leading Builders of America, and the National Association of Home Builders.

Trump “Gold Card”

  • On Sept. 19, 2025, the White House released an Executive Order, fact sheet, and website announcing Gold and Platinum “Trump Cards.” These programs are intended to grant permanent residency in the U.S. for immigrants with high net worth.
  • The Secretaries of Commerce, State, and Homeland Security will coordinate and establish a program within 90 days that expedites “green cards” issued under the EB-1 and EB-2 visa categories for foreign nationals who make a “significant financial gift to the Nation.”
  • Gold Card Website: TrumpCard.gov outlines new residency options tied to multimillion-dollar “gifts” to the U.S. to obtain a Gold Card ($1 million), Corporate Gold Card ($2 million), or Platinum Card ($5 million).
  • Following the EO’s release, RER developed a fact sheet summarizing what we currently know about the Trump Card program – and how it may interact with the EB-5 “regional center” program, which provides visas for foreign investors in infrastructure, real estate, and other U.S. development projects. (RER Fact Sheet)
  • EB-5: The “regional center” program rests on firm statutory foundation through 2027 under the EB-5 Reform and Integrity Act, enacted by Congress in 2022. EB-5 dates back to the 1990s and is the most established investor visa pathway with a proven record of creating jobs for U.S. workers. (Forbes, Sept. 22)
  • H-1B changes: The administration also announced that a $100,000 fee would accompany new applications for H-1B visas for highly-skilled workers— intensifying debate between critics who argue foreign workers displace Americans and business leaders who view overseas talent as vital to U.S. competitiveness. (Axios, Sept. 20 | The Hill, Sept. 23)
  • At a Sept. 19 press conference, Commerce Secretary Howard Lutnick said the new visa programs and HB-1 fee could raise over $100 billion, which President Donald Trump pledged the government will use toward tax cuts and debt reduction. (Tax Notes, Sept. 23)

RER Advocacy

  • In March, RER sent a letter to Sec. Lutnick, endorsing the “Gold Card” proposal, and reiterating the real estate industry’s longstanding support for the EB-5 program. (Roundtable Weekly, March 14)
  • As RER’s letter emphasized, the “Gold Card” and EB-5 must work in tandem to achieve multiple objectives: attract top global talent, drive foreign investment to the U.S., and create jobs for American workers. (Letter, March 11)

RER will continue to advocate for common sense immigration policies that prioritize national security while also boosting U.S. economic growth, productivity, and housing supply.

Government Shutdown Deadline Nears

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Congress has less than a week to keep the government open as an Oct. 1 shutdown looms. (Punchbowl News, Sept. 24)

State of Play

  • House GOP plan: A continuing resolution (CR) through Nov. 21 that would also extend the National Flood Insurance Program (NFIP). Senate Democrats blocked it. (Politico, Sept. 25)
  • Democratic plan: A shorter CR to Oct. 31 that adds priorities such as Affordable Care Act subsidies and reversing Medicaid cuts. Senate Republicans blocked it. (Punchbowl News, Sept. 23)
  • GOP leaders frame their plan as a clean extension to buy time to keep the government open while negotiations continue. Democrats say Republicans are ignoring urgent needs.
  • On Wednesday, President Trump canceled a planned meeting with Senate Democratic Leader Chuck Schumer (D-NY) and House Democratic Leader Hakeem Jeffries (D-NY), rejecting their push to include healthcare funding in a deal to avert a shutdown. (AP News, Sept. 23)
  • In a social media post, he said no meeting with Democratic leaders “could possibly be productive.”
  • Rep. Jeffries also scheduled a caucus call on Friday to discuss “the path forward,” and a follow-up meeting in Washington on Sept. 29, despite the House being out of session. (Roll Call, Sept. 24)

Government Funding & CRE

  • Without congressional action, the NFIP will lapse on Sept. 30. Another short-term extension would be its 34th in eight years.
  • The Real Estate Roundtable (RER) supports a sustainable, long-term NFIP reauthorization with appropriate reforms. A robust program is essential for residential markets, catastrophe insurance capacity, and the broader economy.
  • The CR would also let the Department of Housing and Urban Development (HUD) use funds to prevent evictions in the Tenant-Based Rental Assistance program. (PoliticoPro, Sept. 17)

Senate Democratic Leaders say they won’t support any House-passed funding bill unless GOP leaders negotiate, while Republicans argue there’s nothing to discuss—casting next week’s vote on a “clean” CR as the only path forward. (The Hill, Sept. 25)

OB3 Act Ends “Phantom Income” Tax Penalty on Condominium Development

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A new PwC analysis highlights the significance of tax accounting reforms in the One Big Beautiful Bill (OB3) Act, which end a long-standing burden on condominium developers—a change long advocated by The Real Estate Roundtable.

Why It Matters

  • The OB3 Act expands eligibility for the completed contract method (CCM) of accounting, allowing residential condominium projects to defer income recognition until projects are substantially complete. (PwC Study, Sept. 18)
  • This reform aligns tax liability with actual receipts and ends the problem of phantom income that often arises when condo units are pre-sold to buyers prior to completion. The change closely tracks standalone legislation, the Fair Accounting for Condominium Construction Act, long championed by RER. (RER Annual Report, July 2025)
  • Mixed-use projects with a substantial residential component can also qualify if 80% or more of the costs are tied to dwelling units. (PWC Study, Sept. 18)
  • Prior tax rules forced developers to use the percentage-of-completion method (PCM), requiring them to pay taxes on projected profits before projects were completed or units were sold.
  • PwC notes the expansion “opens the door” for general contractors and subcontractors to benefit, particularly in high-cost urban markets where new housing is most needed.

Roundtable Advocacy – Condominium Construction

  • Since 2015, RER has sought to promote housing construction by repealing the discriminatory tax accounting rule that unfairly creates phantom income for condo developers.
  • New condominium developments can take years to complete. Developers often market units and collect deposits to secure financing, but contractual restrictions typically limit access to those funds until closing.
  • Recent sponsors of the Fair Accounting for Condominium Construction Act have included Rep. Vern Buchanan (R-FL) in the House and Sen. Todd Young (R-IN) in the Senate.

RER will continue advocating for policies that encourage capital formation, housing construction, and rational taxation of real estate.

Fed Cuts Rates in Welcome Move for CRE

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On Wednesday, the Federal Reserve reduced its benchmark interest rate by 25 basis points, marking the first rate cut since December 2024. Central bank officials also projected two additional rate reductions this year, citing growing concerns about labor market softening and economic headwinds.

Fed’s Decision

  • The Fed’s move brings its target federal funds rate to a range of 4 percent to 4.25 percent, aligning with expectations on Wall Street. (CNBC, Sept. 17)
  • Fed Chair Jerome Powell emphasized that while inflation remains above the 2 percent target, rising signs of labor market weakness justify a more accommodative stance.
  • Governor Stephen Miran, confirmed to the Fed Board on Monday, cast the lone dissent in favor of a steeper half-point cut.
  • The central bank’s latest projections signal two more rate cuts before year-end, though the “dot plot” of officials’ individual expectations varied considerably.

Housing Impact

  • Mortgage rates have responded quickly to the Fed’s decision, falling to 6.17 percent as of Thursday—the lowest level in nearly a year. (Fortune, Sept. 18)
  • However, mortgage rates remain elevated compared to pre-pandemic levels, leaving many prospective homebuyers priced out. Home values remain roughly 50 percent higher than at the start of the decade. (AP News, Sept. 18)
  • Chair Powell acknowledged that monetary policy alone cannot solve the nation’s housing affordability crisis. “There’s a deeper problem here, that’s not a cyclical problem that the Fed can address, and that is just a pretty much nationwide housing shortage,” he said. (CNN, Sept. 17)
  • The Real Estate Roundtable (RER) continues to advocate for bipartisan solutions that increase housing supply and reduce regulatory barriers to new development, such as the Road to Housing Act (S. 2651) and the Revitalizing Downtowns and Main Streets Act (H.R. 2410).

Implications for CRE

(L-R): Jef Conn, Jeffrey DeBoer, and Shannon McGahn
  • The Fed’s rate cut comes soon after the release of RER’s Q3 2025 Sentiment Index, which reflected cautious optimism among CRE executives. The Index rose 13 points from last quarter to a score of 67, as signs of stabilization and sector-specific growth have started to emerge. (Roundtable Weekly, Sept. 5)
  • Interest rate cuts could provide a modest tailwind for CRE markets, although some property types remain under pressure.
  • Further reductions in borrowing costs into 2026 could support more robust valuations and transaction activity. (Multifamily Dive, Sept. 17)
  • At the 2025 C5 + CCIM Global Summit in Chicago this week, RER President & CEO Jeffrey DeBoer joined Shannon McGahn (Executive Vice President and Chief Advocacy Officer, National Association of REALTORS®) and Jef Conn (Industrial & Office Specialist, Coldwell Banker Commercial Capital Advisors) on a panel to discuss the bipartisan nature of the nation’s affordable housing crisis.
  • DeBoer emphasized the need for a construction visa program to expand the labor force and build more supply, along with policies such as YIMBY legislation, property conversion incentives, and permitting reforms to help address the crisis.

The Fed’s next rate decision is scheduled for Oct. 29, with the final FOMC meeting of the year set in early December.

Government Funding Deadline Looms as NFIP Nears Expiration; RER Hosts Town Hall

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Senate Democrats on Friday blocked a House-passed stopgap spending bill that would have funded federal agencies for seven weeks, setting the stage for a potential Oct. 1 government shutdown.

  • The measure failed on a 44-48 vote, with only Sen. John Fetterman (D-PA) joining Republicans in support of the proposal, which had cleared the House earlier in the day by a narrow 217-212 vote. (The Hill, Sept. 19)
  • Senate Majority Leader John Thune (R-S.D.) said the Senate will reconsider the vote when lawmakers return from recess. (Roll Call, Sept. 19)
  • Earlier in the week, House Republicans introduced their continuing resolution (CR) to keep federal agencies open through Nov. 21, while Democrats countered with a plan extending funding only until Oct. 31. (Punchbowl News, Sept. 18)
  • Lawmakers may not return until Sept. 29, leaving less than 48 hours to avert a shutdown. (Punchbowl News | PoliticoPro, Sept. 19)

Government Funding & CRE

  • The House GOP bill would also extend the National Flood Insurance Program (NFIP) until Nov. 21. Without congressional action, the NFIP will expire on Sept. 30. If approved, the House GOP’s proposal would mark the NFIP’s 34th short-term extension in eight years.
  • Lawmakers from both parties have long called for an overhaul, and signaled interest in pursuing longer-term reforms to the program.
  • Policymakers in both chambers have signaled interest in pursuing longer-term reforms to NFIP. Chair of the Senate Banking Securities, Insurance and Investment Subcommittee, Mike Rounds (R-SD) said he expects “some reforms that can occur” this fall to put the program on a stronger financial footing. (PoliticoPro, Sept. 18)
  • The rising cost of insurance premiums due to the growing number of billion-dollar natural disasters reinforces the importance of the NFIP.
  • The Real Estate Roundtable (RER) has long supported a sustainable, long-term NFIP reauthorization with appropriate reforms. A robust program is essential for residential markets, catastrophe insurance capacity, and the broader economy.
  • The funding bill would also allow the Department of Housing and Urban Development (HUD) to use available funds to prevent evictions of households served by the Tenant-Based Rental Assistance program. (PoliticoPro, Sept. 17)

RER Town Hall

  • RER hosted a virtual Town Hall this week, “How Today’s Political Climate Impacts Real Estate,” with Politico’s Jonathan Martin (Politics Bureau Chief and Senior Political Columnist)
  • The discussion was led by RER Chair Kathleen McCarthy (Global Co-Head of Blackstone Real Estate), RER President and CEO Jeffrey DeBoer, and RER policy staff.
  • Martin shared his outlook on the 2026 and 2028 elections, the messaging challenges facing both parties, and shifting party identities.
  • He cautioned that a short-term government shutdown remains “more likely than not” as both parties seek leverage over Medicaid cuts and health care tax credits.

RER members also engaged in policy discussions on a number of policy priorities, including the implementation of the OB3 Act, Section 899 “revenge tax” concerns, Opportunity Zones, clean energy tax incentives, housing finance reform, and the future of TRIA.