Congress returned from recess this week with housing affordability at the forefront, as lawmakers, industry leaders, and advocates launched new legislation, coalition efforts, and regulatory proposals aimed at expanding supply and lowering barriers to residential development.

Summit on Housing Affordability

• The National Summit on the Housing Affordability Crisis convened Sept. 3 on Capitol Hill and featured House Democratic Leader Hakeem Jeffries (D-NY), Sen. Ruben Gallego (D-AZ), and other lawmakers calling for bold action to expand and improve the affordability of housing nationwide. Rep. Jimmy Gomez (D-CA) hosted the summit. (Watch Panel)

• RER President & CEO Jeffrey DeBoer joined Rep. Gomez, Emily Cadik (Affordable Housing Tax Credit Coalition), and Will Fischer (Center on Budget and Policy Priorities) on the summit’s opening panel “Making the Housing Puzzle Work.” (Watch DeBoer’s Remarks, Sept. 3)

• DeBoer commented, “Housing affordability is at its core a supply problem—and supply is constrained by costs, labor, and capital. We need policies that continue to expand the Low-Income Housing Tax Credit, advance the bipartisan Revitalizing Downtowns and Main Streets Act to encourage the conversion of obsolete buildings, and ensure we have the skilled workforce to build. That’s why it’s so important to bring together lawmakers and stakeholders from every sector, because housing is an essential facet of American life, and solving this crisis requires public and private partners working together to expand supply, modernize rules, and deliver homes—both owned and rental single-family and multifamily—that meet the needs of Americans.”

• Rep. Gomez highlighted the RER-backed Revitalizing Downtowns and Main Streets Act, which would create a federal tax credit to convert underutilized and obsolete commercial properties into affordable housing.

• Rep. Gomez framed the affordability crisis as a test of confidence in U.S. institutions, saying America “needs a housing boom” prioritizing fairness and accessibility. (Rep. Gomez Press Release, Sept. 4)

Bipartisan Housing Legislation

• On Sept. 2, RER joined more than 20 real estate and housing groups in a Housing Affordability Coalition letter to Congress urging action on several bipartisan bills, including the HOME Investment Partnerships Reauthorization and Improvement Act, the Workforce Housing Tax Credit Act, and more. (Letter, Sept. 2)

• The letter emphasized that housing affordability requires public–private partnerships and the removal of regulatory barriers.

• Rep. Mike Flood (R-NE), chair of the Housing and Insurance Subcommittee, said he aims for an October markup of a bipartisan HOME program reauthorization with Ranking Member Emanuel Cleaver (D-MO). (PoliticoPro, Sept. 3)

• Their plan would expand uses of HOME funds, reduce regulatory burdens associated with Davis-Bacon, NEPA, and Buy America compliance, and speed affordable housing development.

• The House agenda complements the Senate’s ROAD to Housing Act, advanced in July, and includes veteran housing and land-use reform bills. (Roundtable Weekly, Aug. 1)

• RER submitted a comment letter in support of the ROAD to Housing Act ahead of the committee’s first bipartisan housing markup in over a decade in July. (Roundtable Weekly, Aug. 1)

• Earlier this week, Treasury Secretary Scott Bessent said the Trump administration is weighing whether to declare a national housing emergency this fall, citing zoning and building codes as barriers to new supply. (Bloomberg, Sept. 1)

Coalition Seeks Flexibility on Davis-Bacon

• On Sept. 3, RER and a group of multifamily trade associations sent a comment letter to HUD Secretary Scott Turner urging the use of Project Labor Agreements (PLAs) to determine prevailing wages on HUD projects. (Letter, Sept. 3)

• The letter states that PLAs would provide more accurate, local, and timely wage determinations than the Department of Labor’s (DOL) survey method, which often delays projects and raises costs.  

• In May, RER joined a coalition of 15 national real estate organizations urging the DOL to repeal and revise its 2023 Davis-Bacon rule. (Letter, May 20 | Roundtable Weekly, May 23)

• The coalition said voluntary PLAs could reduce administrative burdens, speed delivery of HUD-backed housing, and serve as a test case for future Davis-Bacon reforms.

What’s Next

With Congress back in session, housing advocates are pressing for quick action on bipartisan bills and regulatory reforms. RER will continue to push for policies that expand supply, modernize outdated rules, and foster partnerships to address the nation’s affordability crisis.

Major changes to the federal tax code’s clean energy incentives, signed into law on July 4 by the One Big Beautiful Bill (OB3) Act, continue to reshape the future of building-related solar, storage, and energy efficiency investments.

Energy Tax Incentives

• To address ongoing questions about the OB3 Act’s impact, RER developed a fact sheet, “Clean Energy Tax Incentives and the One Big Beautiful (OB3) Act – What CRE Should Know”, detailing how the law treats energy investments relevant to real estate. (RER Fact Sheet, Aug. 27)

• The OB3 Act accelerates the phase-down of certain tax credits, shortens eligibility timelines, and adds stricter foreign content and control rules. Projects beginning construction in 2025 and beyond should consider:

• Tax credits that phase out over the next few years (such as the Section 48E “tech neutral” credit for solar, the Section 179D deduction and 45L credit for energy efficiency projects, and the Section 30C credit for EV charging stations);

• Tax credits that remain available well into the 2030s (such as Section 48E for energy storage); and

• Permanent options for “full expensing” that can accelerate tax write-offs of energy-related and other building investments, regardless of Section 48E or other tax credit availability

Solar “Beginning of Construction”

• A July 7 White House executive order directed Treasury to tighten rules around the IRS’s “5% Safe Harbor” test, a key determinant of when solar projects officially “begin construction.” (Roundtable Weekly, July 11)

• The timing of when rooftop solar projects are deemed to “begin construction” is crucial for determining tax credit eligibility under the OB3 Act’s accelerated phase-down of the Section 48E credit.

• RER, Nareit, NAIOP, and ICSC submitted a joint letter to Treasury on Aug. 8 urging continued reliance on both the Safe Harbor and Physical Work Tests. (Letter, Aug. 8)

• On Aug. 15, the IRS issued Notice 2025‑42, preserving the Safe Harbor for rooftop solar projects of 1.5 MW or less, which includes most CRE rooftop solar projects and maintains their eligibility for Section 48E credits (for as long as they remain available). (Clean Energy Council, Aug. 18)

EPA ENERGY STAR

• The status of the ENERGY STAR program should become clearer as part of the “phase 2” reorganization plan of the Environmental Protection Agency (EPA), expected to be implemented by the end of September, as per a White House budget office memo. (EPA press release, July 18) (Politico, July 17).

• RER and multi-industry coalition partners advocated strongly for Senate and House Appropriations Committee actions this summer, which would provide ample federal spending for ENERGY STAR in FY’2026 starting on Oct. 1. (Roundtable Weekly, July 25).

• Meanwhile, ENERGY STAR recently certified 131 buildings nationwide under its voluntary new NextGen program, available for highly energy efficient buildings that also opt to reduce emissions and use renewable energy.

• RER has long supported EPA’s creation of the NextGen program as a meaningful, attainable federal alternative to onerous state and local building performance regulations that impose long-term mandates for all-electric buildings and “net zero” emissions.”  (Roundtable Weekly, Oct. 11, 2024; March 22, 2024).

California Guidance on Climate Reporting

• The California Air Resources Board (CARB) released draft guidance this week for companies required to publicly report on climate-related financial risks under state law SB 261.

• Quantifying and reporting Scope 1, 2, and 3 emissions will not be mandatory in the initial reporting period under California’s law, which applies to companies with annual worldwide revenue greater than $500 million. (PoliticoPro, Sept. 2 | RER’s fact sheet on SB 261 and SB 253, Sept. 2023)

• The new reporting requirements are expected to start in 2026. Final rules from CARB are expected by December. (ESGToday, Sept. 4)

Housing Affordability and Energy Codes

• Next Tuesday, Sept. 9, the House subcommittee focused on energy policy will hold a hearing examining the impact of residential building energy codes on housing affordability. (Energy Subcomm. Press release, Sept. 2)

• According to the memo prepared for the hearing, construction that aligns with the 2021 version of model residential energy codes can add $31,000 to the price of a new home, “and take up to 90 years for a home buyer to recoup the payback value.”

• Witnesses at the hearing include representatives from the National Association of Home Builders (NAHB) and the natural gas utility serving the Washington, D.C. metro area.

RER will continue advocating to the Trump administration and Congress for clear, workable policies that support long-term real estate energy investments.

Congress returned from recess this week to heavy debate over government spending and the looming risk of a shutdown. Meanwhile, a new push for permitting reform gained steam.

Back in Session

• With Congress back in session, legislative leaders have less than 30 days to pass a funding bill. Votes from both Democrats and Republicans will be needed to keep the government open.
  
  
• However, Democratic anger over the White House’s use of “pocket rescissions” has created additional complications. The White House has used these rescissions to impound billions of dollars in congressionally approved funding, sparking opposition from Democrats and even some Senate Republicans. (Punchbowl News | The Hill, Sept. 3)
  
  
• Senate Majority Leader John Thune (R-SD) is seeking bipartisan support for an FY’26 appropriations package, but it remains uncertain whether Congress will pass all funding bills or a short-term continuing resolution before the Sept. 30 deadline. (Punchbowl News, Sept. 3)
  
  
• In addition, the National Flood Insurance Program (NFIP) is set to lapse on Sept. 30 unless reauthorized. The importance of the NFIP to the health of commercial real estate markets has grown as the number of billion-dollar natural disasters and the cost of insurance premiums continue to rise. (Fact sheet)
  
  
• In late July, the House and Senate Appropriations Committees passed provisions preserving funding for the ENERGY STAR program in FY’26.

• The Real Estate Roundtable (RER) will continue working with policymakers and a broad coalition of organizations to ensure that these provisions are reflected in the final appropriations package. (Roundtable Weekly, July 25)

Roundtable on the Road

• House GOP leaders, are pressing ahead with early talks on another major domestic policy package, though momentum is uncertain as hopes for passage by year’s end fade.

• Senate Majority Leader John Thune didn't definitively rule out a second megabill in a brief interview but acknowledged “there would have to be a reason to do it.” (PoliticoPro, Sept. 4)

• RER’s SVP & Counsel Ryan McCormick discussed these dynamics this week at the University of Utah Ivory-Boyer Real Estate Center Fall Board Retreat, where he outlined the OB3 Act’s impact on CRE, RER’s advocacy on tax policy, and what to expect this fall in Washington.

Permitting Reform Push

• A bipartisan group of lawmakers, including House Natural Resources Chair Bruce Westerman (R-AR), Rep. Jared Golden (D-ME), and Senate Environment and Public Works Chair Shelley Moore Capito (R-WV), has not given up on efforts to reform the permitting process for energy infrastructure.
  
  
• While the effort failed last year, Rep. Capito said that she’s seen a “convergence of clean energy folks and people like me who are all-of-the-above meeting together with an urgency.” (Politico, Sept. 2)
  
  
• For years, energy projects of all kinds have been mired in slow, inefficient, and often years-long environmental reviews—among other issues. These problems have delayed the construction of critical infrastructure and made it more difficult for developers to realize their investments.
  
  
• RER has strongly advocated for an “all of the above” energy strategy focused on ensuring an abundant supply of energy, advancing programs to avoid energy waste, strengthening the nation’s electric grid, streamlining federal permitting processes, and fostering innovation in artificial intelligence. Permitting reform is a critical part of achieving these objectives. (Fact sheet)
  
  
• Permitting reform still faces an uphill battle—with policy differences on both sides of the aisle—but the renewed effort is a sign of positive momentum and continued urgency around the need for more energy infrastructure.

Looking Ahead

RER will keep engaging with policymakers on critical and emerging issues for the commercial real estate industry, particularly as momentum for permitting reform grows and congressional negotiations over the appropriations package heat up.

The Real Estate Roundtable’s Q3 2025 Sentiment Index shows increased confidence among industry executives as market conditions stabilize and sector-led growth emerges. The overall Index registered a score of 67—up 13 points from Q2—with notable increases in both the Current (63) and Future (71) indices. (Full Report)

Roundtable View

• RER President and CEO Jeffrey DeBoer said, “Our Q3 Sentiment Index results show that market conditions have continued to stabilize in a meaningful way, supported by improved supply and demand. Commercial real estate executives are increasingly optimistic that the next 12 months will bring continued improvement. That said, certain property types continue to face headwinds, and capital access remains uneven across markets and sectors. Even so, the prevailing sentiment is that stability is returning and opportunities are emerging.” (Press Release, Aug. 14)

• DeBoer added, “The provisions in the One Big Beautiful Bill Act should help accelerate this momentum—expanding housing supply, revitalizing communities, spurring job-creating investment nationwide, and strengthening the broader economy. Coupled with improving debt capital availability and stabilizing asset values, these policies set the stage for renewed growth. Moving forward, industry leaders and policymakers must continue to work together to promote investment, ensure credit access, and address persistent supply-demand imbalances in housing and other high-need property sectors.” (ConnectCRE, Aug. 14)

Topline Findings

The Q3 Sentiment Index topline findings include:

• The Q3 2025 Sentiment Index registered an overall score of 67, an increase of 13 points over the previous quarter. The Current Index registered a score of 63, a 13-point increase over Q2 2025. The Future Index posted a score of 71 points, an increase of 13 points over the previous quarter, reflecting sentiment that operating conditions have largely stabilized. Occupancy and demand are holding, and values appear to have bottomed. Participants expect modest, sector-led growth, yet acknowledge lingering headwinds for weaker property types.

• Sentiment around general market conditions has markedly increased since last quarter (Q2). Only 10% of respondents believe that general market conditions are worse than this time last year, and 56% of respondents believe that general market conditions are better than this time last year. Almost three-quarters (73%) of Q3 survey participants expect general market conditions to show improvement one year from now. Multifamily, data centers, and NYC office shine while industrial supply is overbuilt.

• Half of respondents believe asset values are roughly unchanged compared to a year ago. The remaining respondents are divided, with 32% believing asset prices have increased and 18% believing they have declined. Looking ahead, the outlook is optimistic: 59% expect asset prices to rise over the next year, 32% believe asset values will remain stable, and only 9% anticipate a slight decline.

• Perceptions on the availability of equity capital relative to last year are muted, with 50% of respondents believing equity availability is unchanged compared to a year ago. On the other hand, sentiment around debt capital has risen significantly, as 65% said the availability of debt capital has improved from last year. Looking forward, 55% of respondents believe that equity capital availability will be better in one year, and 48% believe debt capital availability will be better.

Market Dynamics

• Survey participants emphasized the sector-specific nature of today’s market, with performance tied closely to location, asset quality, and loan maturity schedules. Sample responses noted that conditions feel “far steadier than we have seen in recent years,” while others highlighted that “quality product will still get funded” despite a “haves and have-nots” equity environment. (ConnectCRE, Sept. 2)

• The Federal Reserve’s Beige Book released this week, noted that while overall economic momentum remains muted, commercial real estate showed resilience, especially in data center construction.

• Districts such as Philadelphia, Cleveland, and Chicago reported a surge in development, fueled by the push to deploy AI and select infrastructure projects. The Fed described this trend as a rare bright spot for CRE in an otherwise cautious market, while conditions in other property sectors varied widely. (GlobeSt. Sept. 4)

• The commercial real estate industry continues to face persistent challenges from a shortage of skilled labor and rising construction costs, underscoring the urgent need for workforce development and training initiatives.

• Labor Secretary Lori Chavez-DeRemer, joined Punchbowl News Thursday to discuss workforce innovation, calling for more apprenticeship and training programs to address the growing construction labor shortage. (Punchbowl News, Sept. 5)

RER’s Q3 survey was conducted in July by Chicago-based Ferguson Partners. Read the full Q3 report.