Tag: Housing

Cost Recovery Reform to Spur New Housing Supply Gains Traction in Washington

Posted on by abigail_grenadier

A new report from the influential Center for American Progress (CAP) suggests that allowing immediate expensing for new multifamily rental housing could spur a major increase in multifamily construction and bring down housing costs over the next decade. (CAP Report, March 11)

Report Findings

  • The CAP report found that immediate expensing for new multifamily rental housing, with a per-unit cap of $150K-$250K, could spur the creation of 706,000 to 1.06 million new homes over 10 years, at a cost of up to $206 billion. (PoliticoPro, March 12)
  • The researchers claim that faster cost recovery would lower the cost of capital, improve project cash flow, and help move more rental developments from infeasible to financeable.
  • The research also shows that full or partial expensing could increase housing supply at a lower cost per unit than many direct subsidy programs. (Tax Policy Center, March 17)
  • The researchers’ preferred approach would cap immediate expensing at $150,000 per unit, paired with a refundable credit option to address the fact that many real estate investors are tax-exempt or otherwise unable to use additional tax deductions. They estimate the proposal could produce roughly 755,000 new homes over a decade for about $154 billion.
  • The proposal also parallels last year’s One Big Beautiful Bill Act, which provided full expensing for new factories. The Tax Foundation called that change a step forward, but said its economic benefits would be limited because it is temporary and narrowly targeted. (Tax Foundation, Oct. 27, 2025)
  • The Tax Foundation published a reply to the CAP report that generally supports the approach while outlining a variety of cost recovery reform options for policymakers to consider, including: neutral cost recovery, and investment tax credit, tax deduction transferability, shorter asset lives, and partial expensing. (The Tax Foundation, Mar. 23)
  • The recent reports by the two influential think tanks are further evidence that policymakers are open to new approaches aimed at addressing housing affordability challenges.

On the Hill

  • Sen. Lisa Blunt Rochester (D-DE) introduced the Rental Housing Investment Act on March 12, which would allow builders to immediately deduct a portion of new multifamily construction costs rather than recover them over 27.5 years. (Sen. Rochester News Release, Mar. 12)
  • The bill would allow builders to immediately deduct up to $150,000 per unit in construction costs, with an enhanced deduction of up to $250,000 per unit for projects that include income-restricted units under long-term attainability commitments. The incentive would apply only to newly constructed multifamily rental housing. (USA Today, Mar. 11)
  • The measure is intended to support efforts to expand rental supply and address affordability pressures by improving the tax treatment of new multifamily development, as high interest rates and rising construction costs continue to weigh on housing production.

Property Conversions

  • Office conversions now account for nearly half of all future adaptive reuse projects. (CRE Daily, Mar. 25)
  • RentCafe reported that 90,300 apartments were in the conversion pipeline nationwide at the start of 2026, up 28% from 70,600 a year earlier, as the trend continues to gain momentum in both major and mid-sized markets. (RentCafe, Mar. 24)
  • New York leads the pipeline, followed by Washington, D.C., and Chicago. (Bisnow, March 26 | Cushman & Wakefield, Feb. 2026)
  • New research from Pew and Gensler highlights office-to-residential conversions, particularly lower-cost co-living microapartments in underused downtown buildings.  (Pew Research, Mar. 24)
  • Pew found the model could cut per-unit development costs by more than half in some markets and deliver nearly four times as many affordable homes per subsidy dollar compared to traditional studio development. (Pew Research, Mar. 24)
  • RER has strongly backed the bipartisan Revitalizing Downtowns and Main Streets Act of 2025 (H.R. 2410), which would create a market-based tax incentive for converting older commercial buildings to residential use to help expand housing and support the recovery of downtowns and neighborhoods still feeling the effects of the pandemic. (Roundtable Weekly, Mar. 2025)

RER will continue working with policymakers to advance tax and regulatory policies that encourage property conversions, reduce barriers to development, and help expand the nation’s housing supply.

House Weighs Next Move on ROAD to Housing Act

Posted on by abigail_grenadier

The bipartisan 21st Century ROAD to Housing Act remains in limbo in the House, where lawmakers are still weighing how to reconcile the Senate-passed package with the chamber’s own housing bill. The Senate approved its version two weeks ago after combining House priorities with the upper chamber’s broader housing agenda, but House members have raised concerns about several provisions added or revised in the Senate package—most notably the bill’s treatment of build-to-rent (BTR) housing.

State of Play

  • The House and Senate remain at odds over how to advance the housing package after the Senate passed its bill with overwhelming bipartisan support earlier this month. (PoliticoPro, Mar. 23)
  • House Financial Services Ranking Member Maxine Waters (D-CA) urged House Democrats this week to support a formal conference committee, arguing that the final bill should restore House priorities and address stakeholder concerns—an apparent reference to the Senate bill’s restrictions on large institutional investors in single-family housing.
  • Rep. Mike Flood (R-NE) said Wednesday that Senate Banking and House Financial Services leaders need to meet to resolve key differences between the two packages.
  • Rep. Flood identified three major House concerns with the Senate bill: the need to preserve but revise the provision restricting institutional investors from purchasing single-family homes, the omission of environmental review changes for certain affordable housing programs, and the Senate’s inclusion of a temporary rather than permanent restriction on a Federal Reserve central bank digital currency. (PoliticoPro | Watch Rep. Flood Remarks, Mar. 25)

Build-to-Rent

  • The biggest sticking point remains the Senate bill’s requirement that rental homes developed by large investors be sold to individual homebuyers after seven years. (The Urban Institute, Mar. 17)
  • House Republicans have raised concerns that the provision could undercut new rental housing production, disrupt financing, and introduce significant long-term uncertainty into the market.
  • The Real Estate Roundtable (RER) has warned that the bill’s forced-sale structure raises serious constitutional concerns and could trigger years of litigation involving property owners, tenants, and the federal government.

New BTR Research

  • Based on a March 19 discussion with 146 BTR executives, developers, and capital partners, the firm reported this week that the Senate bill’s seven-year disposal requirement has already frozen capital and halted new development ahead of enactment. Some capital will not return even if the bill is altered, reflecting ongoing concerns about future policy risk. (John Burns Research & Consulting, Mar. 24)

RER Advocacy

  • RER and a broad real estate coalition have spent weeks urging lawmakers to preserve the housing bill’s supply-focused provisions while removing language that would force large investors to sell newly built single-family rental homes after seven years. (Roundtable Weekly, Jan. 9 | Jan. 16 |  Jan. 23 | Feb. 27| Mar. 6 | Mar. 13 | Mar. 20)
  • In March, RER joined a series of coalition letters urging senators to remove or revise Section 901, warning that the seven-year sale requirement would effectively eliminate the production of BTR housing. (Roundtable Weekly, Mar. 20) (Letter, Mar. 5 | Letter, Mar. 13)
  • That message was reinforced again this week in an open letter from housing policy researchers, who warned that the Senate-passed ROAD to Housing Act would undermine BTR housing, which represents a growing source of new supply in markets where housing is already out of reach for many households. (Letter, Mar. 26)
  • The researchers said BTR has helped expand the housing stock, particularly for middle-income renters seeking single-family-style housing, and cautioned that the bill’s seven-year sale mandate would disrupt the model’s economics and reduce future production.
  • The letter also noted that many BTR communities are not structured to be sold off unit-by-unit, making the requirement especially problematic in practice.

What’s Next

  • The House and Senate are out on recess and do not return to Washington until April 14, leaving the future of the broader housing package uncertain. (NYT, Mar. 25)

Whether lawmakers pursue a formal conference or a narrower compromise, RER will continue urging Congress to preserve the bill’s pro-supply provisions while removing language that would reduce rental-housing production and make it more difficult to meet the nation’s growing housing needs.

House Weighs Next Steps on ROAD to Housing Act as White House Issues Housing Executive Orders

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The Senate’s overwhelming passage of the bipartisan 21st Century ROAD to Housing Act last week has shifted attention to the House, where lawmakers are weighing how to reconcile the Senate bill with the House-passed housing package approved in February.  (PoliticoPro, March 17 | Politico, March 19)

State of Play

  • The House and Senate remain at odds over how to advance the 21st Century ROAD to Housing Act, with House Republicans threatening a formal conference to force negotiations while Senate leaders hope the House will ultimately accept the Senate-passed bill.
  • The Senate passed the bill 89-10 on March 12. They then sent it back to the House, which had already passed its own bipartisan housing package—the Housing for the 21st Century Act—by 390-9 on February 9.
  • The Senate-passed bill preserves much of the prior ROAD to Housing bill’s framework and includes several provisions intended to boost housing supply.
  • The Senate version also includes Section 901, which would restrict additional single-family home acquisitions by institutional investors that directly or indirectly own at least 350 homes and require owners to sell build-to-rent (BTR) homes within seven years or face an onerous penalty. The Section also provides unusually broad regulatory authority to the Treasury Department to address “market disruptions” and other situations that could create troubling future regulatory actions. (Roundtable Weekly, March 13 | Forbes, March 17)
  • House Financial Services Chairman French Hill (R-AR) told CNBC’s Squawk Box he is optimistic the House and Senate can work through differences in their housing bills, but stressed that the Senate text contains “some real problems” that need to be corrected. He pointed specifically to the build-to-rent provision requiring homes to be sold within seven years, which he said would undermine efforts to increase housing supply. (Watch Squawk Box CNBC, March 18)

Executive Orders – Housing

  • President Trump issued two executive orders aimed at boosting housing construction and expanding mortgage access, as the House and Senate work through differences over the ROAD Act. (EO Construction | EO Mortgage, March 13)
  • The administration said the orders are intended to reduce regulatory burdens, increase supply, and improve credit access for qualified borrowers. (WSJ, March 13)
  • The construction order, “Removing Regulatory Barriers to Affordable Home Construction,” directs federal agencies to revise or eliminate requirements related to environmental reviews, energy conservation standards for manufactured and federally financed housing, and historic preservation, while directing HUD and the White House Domestic Policy Council to develop best practices for state and local governments to increase housing supply and affordability. (EO Construction, Mar. 13)
  • The mortgage order, “Promoting Access to Mortgage Credit,” is intended to expand access to mortgage credit, particularly through community banks and smaller lenders. (EO Mortgage, March 13)
  • The EOs reinforce the administration’s broader housing message and overlap with parts of both congressional bills focused on cutting red tape, supporting community banks, and expanding supply. (PoliticoPro, March 13)

RER & Industry Advocacy

  • In March, RER joined a series of coalition letters urging senators to remove or revise Section 901, warning that the seven-year sale requirement would effectively eliminate the production of BTR housing. (BisNow, March 12) (Letter, March 5 | Letter, March 13)
  • Last week, RER President and CEO Jeffrey D. DeBoer sent senators an analysis warning that the bill’s forced-sale provision raises serious constitutional concerns and would likely trigger years of litigation. (RER Analysis, March 10)
  • DeBoer stated, “RER supports many provisions in the Senate-passed 21st Century ROAD to Housing Act that would help expand housing supply and reduce barriers to homeownership. But the bill’s forced-disposition provision for build-to-rent would discourage investment in new rental housing and raise serious constitutional concerns. As the House takes up the bill, RER urges lawmakers to remove that language and keep the focus on increasing housing supply and affordability. (NMHC & NAA Statement | NAHB Statement, March 12)

RER will continue urging lawmakers to preserve the bill’s pro-supply provisions while removing language that would reduce rental housing production and chill the capital formation needed to address the nation’s housing shortage.

Senate Passes ROAD to Housing Act as Industry Urges Changes to BTR Language

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The Senate passed the bipartisan 21st Century ROAD to Housing Act on Thursday in an 89-10 vote, advancing one of the most significant federal housing packages in years and setting up the next phase of negotiations with the House. (Multi-Housing News, March 13 | BisNow, March 12)

State of Play

  • The Senate-passed bill preserves much of the prior ROAD to Housing bill’s framework and includes several provisions intended to boost housing supply. (Politico, March 12)
  • The package would streamline project reviews, raise FHA multifamily loan limits, support manufactured housing, and encourage additional housing development in designated Opportunity Zones. (Roundtable Weekly, March 6)
  • The final Senate text includes Section 901, which would restrict additional single-family home acquisitions by institutional investors defined as entities that directly or indirectly own at least 350 homes. (Multifamily Dive, March 12)
  • It also includes a seven-year forced disposition requirement that would require owners to sell build-to-rent (BTR) homes they develop to another private party or pay an onerous penalty. (PoliticoPro, March 10)
  • Real Estate Roundtable (RER) President and CEO Jeffrey D. DeBoer stated, “RER supports many provisions in the Senate-passed 21st Century ROAD to Housing Act that would help expand housing supply and reduce barriers to homeownership. But the bill’s build-to-rent forced disposition provision would discourage investment in new rental housing and raise serious constitutional concerns. As the House takes up the bill, RER urges lawmakers to remove that language and keep the focus on increasing housing supply and affordability. (NMHC & NAA Statement | NAHB Statement, March 12)
  • RER has warned that the bill’s treatment of BTR housing raises significant concerns under the Fifth Amendment Takings Clause and the Supreme Court’s decision in Kelo v. City of New London. (RER Analysis, March 10 | WSJ, March 9)
  • A federal law compelling one private party to sell property it owns directly to another private party, without government initiation of eminent domain proceedings, would be without precedent.
  • If enacted, the BTR language would almost certainly invite years of constitutional litigation involving property owners, renters, and the federal government.

Congressional Concerns

  • House Financial Services Chairman French Hill (R-AR) called the Senate vote an “important step,” while cautioning that lawmakers still need to “get the details right” and address concerns raised by House members. (Politico, March 12)
  • Sen. Brian Schatz (D-HI) criticized the investor language on the Senate floor, calling it a “drafting error” and warning it could undermine housing production. (Watch Schatz Speech, March 11)
  • “I will stipulate that there are a lot of good things in this bill that are kind of on the pro-housing supply side, but what we are about to do is essentially ban a specific kind of housing,” said Sen. Schatz. (Barrons, March 11 | NBC News, March 12)
  • Sen. Schatz also said the bill could interfere with LIHTC projects, including affordable single-family developments, if the language is not revised.
  • Rep. Mike Flood (R-NE) has also warned that the Senate bill’s BTR provision could “crush an industry” that produces roughly 50,000 homes a year. (PoliticoPro, March 11)

What the Research Shows

  • Analysis has reinforced the concern that restricting institutional capital may do little to improve affordability while creating new supply problems.
  • RER has consistently emphasized that expanding housing supply is the most effective path to improving affordability, as research shows affordability pressures are driven primarily by supply shortages, construction costs, and mortgage rates—not institutional ownership levels. (Roundtable Weekly, Jan. 9 | Jan. 16)
  • Recent analysis from AEI and Cato indicated that driving institutional capital out of housing is unlikely to improve affordability and may instead reduce investment, shrink supply, and leave Treasury with broad discretion over favored and disfavored forms of housing investment. (AEI, March 10 | CATO Institute, March 4)
  • According to analysis by The Pew Charitable Trusts, Section 901 could sharply curtail build-to-rent housing, which has recently added 70,000 to 130,000 homes annually, by undermining the financial viability of those projects, displacing renters, and reducing new single-family construction starts by 100,000 or more homes a year. (Pew, March 10)

RER & Industry Advocacy

  • In March, RER joined a series of coalition letters urging senators to remove or revise Section 901, warning that the seven-year sale requirement would effectively eliminate the production of BTR housing. (PoliticoPro, March 10 | BisNow, March 12; Letter | Bisnow | Politico, March 5; Letter, March 9)
  • This week, RER President and CEO Jeffrey D. DeBoer sent senators an analysis warning that the bill’s forced-sale provision raises serious constitutional concerns and would likely trigger years of litigation. (RER Analysis, March 10)
  • In a letter sent today to House leadership, RER and other national organizations thanked the House for advancing landmark housing legislation while urging lawmakers to amend Section 901 before final passage. (Letter, March 13)
  • The letter warns that the Senate-passed language would effectively eliminate the production of BTR housing and take critically needed new housing units off the table at a time of severe affordability and supply pressures. (Letter, March 13)
  • The coalition also argued that BTR homes expand rental choices for families seeking more space and flexibility, and that forcing providers to sell those homes would displace renters, reduce supply, and undermine the bill’s broader pro-housing goals.

What’s Next

  • The House would need to pass the Senate’s version or convene with the upper chamber to combine the bills into one piece of legislation before it heads to the president’s desk. (Politico, March 12)
  • “If the White House wants the House to pick up the bill and pass it, they’ll probably have to make that argument to the House leadership,” Senate Majority Leader John Thune (R-SD) said Thursday. (Politico, March 12)

RER will continue urging lawmakers to preserve the bill’s pro-supply provisions while removing language that would reduce rental housing production and chill the capital formation needed to address the nation’s housing shortage.

Senate Housing Package Advances as Investor Ban Draws Opposition

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The Senate this week moved forward with the 21st Century ROAD to Housing Act. This sweeping bipartisan package combines House and Senate housing provisions with the Trump administration’s push to restrict large institutional investors from buying single-family homes. (BisNow, March 3 | March 6 | RER Statement, March 4)

State of Play

  • The measure cleared an initial procedural vote, 84-6, after Senate Banking Chair Tim Scott (R-SC) and Ranking Member Elizabeth Warren (D-MA) released updated legislative text. A second vote on Wednesday, 90-8, moved the package closer to final action.  (Politico, March 2)
  • The latest Senate text largely preserves the prior ROAD to Housing framework, while adding a new provision to limit additional single-family home purchases by large institutional investors. The bill defines a large institutional investor as a company that owns 350 or more homes and incorporates exemptions, including for build-to-rent housing.
  • The White House said President Trump’s advisers would recommend signing it in its current form. (BisNow, March 3)
  • The broader package also encompasses provisions to streamline reviews for projects, raise FHA multifamily loan limits, support manufactured housing, and encourage additional housing development in Opportunity Zones. (BisNow, March 3)
  • Several senators had not reviewed the updated legislative text before Monday’s vote because it was released shortly beforehand. (Politico, March 2)

Congressional Opposition

  • Sen. Thom Tillis (R-NC) said he was not supportive of the investor provision if it mirrors the administration’s earlier crackdown, warning it would move policymakers “further away from producing affordable housing.”
  • Today, House Financial Services Committee Chair French Hill (R-AR) warned that his chamber is not prepared to support the 21st Century ROAD to Housing Act. “There are members in the House whose provisions and views were not accounted for in the current iteration of the 21st Century ROAD to Housing Act,” Hill said. (Punchbowl News Vault, March 6)
  • Hill is “optimistic” that those concerns can be addressed. Absent that, Hill said “further negotiations, including a possible conference, may be needed.” (Punchbowl News Vault, March 6)

What the Research Shows

  • Analysis has reinforced the concern that restricting institutional capital may do little to improve affordability while creating new supply problems.
  • The Real Estate Roundtable (RER) has consistently emphasized that expanding housing supply is the most effective path to improving affordability, as research shows affordability pressures are driven primarily by supply shortages, construction costs, and mortgage rates—not institutional ownership levels. (Roundtable Weekly, Jan. 9 | Jan. 16)
  • A recent Brookings analysis concluded that banning large institutional purchases of single-family rentals would yield only a very small increase in homes available for purchase, while leading to higher rents for families who need or prefer renting. (Brookings Institute, Feb. 23)
  • The same analysis warned that unexpected limits on investor activity could reduce future capital commitments to the sector and weaken property rights in ways that discourage new supply. (Brookings Institute, Feb. 23)
  • A Cato Institute analysis similarly argued that the proposed Section 901 provision in the bill would give the Treasury Department broad discretion to distinguish among favored and disfavored forms of housing investment. (CATO Institute, March 4)

Industry & RER Advocacy

  • RER and broad housing coalitions have been making the same supply-focused case for weeks. (Roundtable Weekly, Jan. 9 | Jan. 16 |  Jan. 23 | Feb. 27)
  • “On one hand, it undermines the whole idea of the [ROAD to Housing Act] if the purported idea of [the bill] was to help us build more housing and reduce barriers to building, and then you create this legal structure that makes it effectively impossible to build and finance in this very important sector,” said Sharon Wilson Géno, president of National Multifamily Housing Council. (PoliticoPro, March 4)
  • RER member Sean Dobson ( Chairman, CEO and CIO, Amherst) echoed that argument in an op-ed this week, that restricting single-family rental supply does not erase the financial barriers that keep many households from buying; it simply reduces housing options for families who are structurally constrained from homeownership by income, credit, and down payment hurdles. (Fortune, March 5)
  • In a March 5 coalition letter to Senate leaders and the Banking Committee, RER and dozens of national housing organizations warned that Section 901, as drafted, “would effectively eliminate the production of Build-to-Rent (BTR) housing.” (Letter, March 5) (Bisnow, March 5 | Politico, March 5)
  • “It doesn’t prohibit it, but it greatly discourages build-to-rent activities,” RER President & CEO Jeffrey DeBoer told Bisnow in an interview Friday. (Bisnow, March 6)
  • “These projects take years to get through the development process, the zoning process, the funding process,” he added. “Requiring any private business or citizen to sell any kind of asset in a certain time is highly unusual, and I think a lot of people would say it’s unconstitutional.”
  • The letter notes that the bill’s seven-year disposition rule would chill investment across the BTR supply chain, even with nominal exemptions. It urges the Senate to amend the bill to fully exempt BTR housing. (PoliticoPro, March 5)
  • DeBoer also issued a statement earlier this week, following the release of the bill’s updated legislative text, “The Real Estate Roundtable supports many provisions in the ROAD to Housing Act and the Housing for the 21st Century Act, both of which take important steps toward expanding housing supply.  Expanding housing supply requires significant capital investment.  However, the institutional investor provisions under consideration in the Senate bill would be counterproductive. These provisions would discourage the capital investments that are needed to develop, redevelop, and modernize the nation’s owner-occupied and rental housing stock. In particular, the provision to force institutional owners of rental housing to sell the homes that they build within a specified 7-year timeframe would discourage investment in home construction, could actually result in rent increases in many markets, and would no doubt face substantial constitutional challenges. While much of the housing bill now before the Senate is properly focused, the institutional investor provisions should be dropped.” (RER Statement, March 4)

What’s Next

  • The Senate bill still must clear final passage and be reconciled with the House before it can reach the president’s desk. There is speculation that a vote on final passage of the package could happen as early as next week. (PoliticoPro, March 4)

RER will continue advocating for policies that expand housing supply and protect the capital formation needed to build and preserve housing, rather than measures that risk constraining investment without solving the underlying shortage.

RER Statement on the 21st Century ROAD to Housing Act

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Statement by Real Estate Roundtable (RER) President and CEO Jeffrey D. DeBoer

(WASHINGTON, D.C.) — “The Real Estate Roundtable supports many provisions in the ROAD to Housing Act and the Housing for the 21st Century Act, both of which take important steps toward expanding housing supply.  Expanding housing supply requires significant capital investment.  However, the institutional investor provisions under consideration in the Senate bill would be counterproductive. These provisions would discourage the capital investments that are needed to develop, redevelop, and modernize the nation’s owner-occupied and rental housing stock.  In particular, the provision to force institutional owners of rental housing to sell the homes that they build within a specified 7-year timeframe would discourage investment in home construction, could actually result in rent increases in many markets, and would no doubt face substantial constitutional challenges.  

Addressing housing affordability challenges facing families across the country requires a greater supply of housing.  While much of the housing bill now before the Senate is properly focused, the institutional investor provisions should be dropped.”

Fed Holds Rates Steady as Housing Affordability Pressures Shape Policy Debate

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The Federal Reserve building in Washington, DC

After the Federal Reserve’s Federal Open Market Committee (FOMC) concluded its January meeting on Wednesday by holding rates steady at 3.5 percent to 3.75 percent, President Donald Trump announced today he is nominating former Fed governor Kevin Warsh as the next Fed chair. (Axios, Jan. 30 | CBS News, Jan. 28)

Fed Chair

  • “I have known Kevin for a long period of time, and have no doubt that he will go down as one of the GREAT Fed Chairmen, maybe the best,” said Trump in a Truth Social post announcing the selection. (CNBC, Jan. 30)
  • Warsh still needs Senate confirmation and, if approved, would take over in May when Powell’s term expires.

Key Takeaways

  • The FOMC voted 10-2 to maintain rates, with Governors Stephen Miran and Christopher Waller dissenting in favor of an additional quarter-point cut. While most Fed officials still expect further reductions in 2026, Chair Powell emphasized that decisions will remain “data dependent.” (Fed statement, Jan. 28)
  • Fed Chair Jerome Powell said the economic outlook has “clearly improved” since the Committee’s December meeting.
  • Fed Chair Jerome Powell said the economic outlook has “clearly improved” since the Committee’s December meeting.
  • He cited growth and signs of stabilization in the labor market, while emphasizing that policymakers want greater confidence that inflation is moving toward the Fed’s 2 percent target before resuming rate cuts.
  • The U.S. economy grew at a 4.4 percent annual rate in the third quarter of 2025. Chair Powell noted that this performance suggests that interest rates are not currently restrictive enough to materially slow economic activity. (AP, Jan. 28)
  • Inflation remains above target, with the Fed’s preferred measure running near 2.8 percent late last year. Chair Powell acknowledged that recent tariff-related price pressures have lifted goods inflation but suggested those effects are likely temporary and could begin easing later this year. (AP, Jan. 28)
  • The Fed’s decision to hold rates steady reinforces expectations that borrowing costs will remain elevated through at least mid-year.
  • For commercial real estate, sustained higher-for-longer rates continue to place pressure on refinancing, valuations, and transaction activity.

Institutional Investor Legislation Introduced

  • Against this backdrop of a pause in rate cuts and broader concerns about housing affordability, lawmakers have renewed efforts to target institutional participation in the single-family housing market.
  • On Jan. 20, Reps. Summer Lee (D-PA), Ro Khanna (D-CA), Mark Takano (D-CA), and Jill Tokuda (D-HI) reintroduced the Stop Wall Street Landlords Act (H.R. 7138). (Press Release, Jan. 20)
  • The bill would deny mortgage interest, insurance, and depreciation deductions for large institutional investors that own single-family homes and impose a 100 percent federal real estate transfer tax on covered properties that are not sold within 18 months of enactment, with proceeds used to fund the federal Housing Trust Fund.
  • The proposal would also bar the Federal Housing Financial Agency, Fannie Mae, Freddie Mac, and Ginnie Mae from supporting single-family mortgages tied to large institutional investors. (CNBC, Jan. 18)
  • Other legislation aimed at restricting institutional investment in the single family rental market include:
  • Rep. Mary Miller (R-IL) introduced the American Family Housing Act (H.R. 7186), co-sponsored by Rep. Buddy Carter (R-GA), which would direct the SEC to enforce restrictions on large institutional investors (those with more than $100 billion in assets under management) from purchasing single-family homes. Rep. Miller serves on the House Agriculture Committee and Rep. Carter on the House Budget Committee.
  • The debate has taken on added political significance following President Trump’s recent statements and Executive Order on curtailing institutional ownership of single-family homes. (CNBC, Jan. 18 | Roundtable Weekly, Jan. 23)

Looking Ahead

  • Proposals such as the Stop Wall Street Landlords Act risk could further restrict housing supply and access to capital at a time when liquidity and investment are already under pressure.
  • As The Real Estate Roundtable (RER) and partners have emphasized, targeting institutional investment does not address the core drivers of unaffordability: high mortgage rates, rising construction costs, labor shortages, and restrictive zoning that limits housing supply. (Roundtable Weekly, Jan. 9)

RER will continue to engage policymakers about the importance of expanding housing supply, preserving access to capital, and maintaining regulatory flexibility to support long-term stability for the commercial real estate industry and the overall economy.

House Committee Advances Roundtable-backed Housing Package and Flood Insurance Bill

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This week, the House Financial Services Committee (HFSC) advanced 20 bills during a two-day markup session—including the bipartisan Housing for the 21st Century Act (H.R. 6644), which contains numerous reforms championed by The Real Estate Roundtable (RER) and a coalition of national real estate and housing organizations. (Letter, Dec. 15)

Comment Letter Highlights

  • Ahead of the two-day markup session, RER and a coalition of 11 other housing, finance, and real estate groups sent a letter to HFSC Chair French Hill (R-AR), Ranking Member Maxine Waters (D-CA), and housing subcommittee leaders expressing support for the Housing for the 21st Century Act and the committee’s broader efforts to expand affordable housing. (Letter, Dec. 15)
  • The coalition commended the committee’s bipartisan approach and highlighted H.R. 6644 as a “meaningful step toward addressing one of the most urgent challenges facing our nation: expanding housing supply for both renters and homeowners and improving affordability for working families.”
  • The letter focused on key provisions of the HFSC’s bill, such as modernizing and streamlining federal housing programs, removing unnecessary federal requirements, expanding financing pathways, promoting manufactured housing as cost-effective solutions, and more.
  • The coalition also warned that housing affordability is driven by sustained underproduction, rising construction costs, regulatory delays, and outdated standards, and emphasized that no single policy change can address these pressures alone.

Housing for the 21st Century Act Advances

  • Co-sponsored by Chair Hill and Ranking Member Waters, the Housing for the 21st Century Act received near-unanimous support this week—with the Committee voting 50-1 for its passage.
  • The Housing for the 21st Century Act incorporates some elements of the bipartisan ROAD to Housing Act, which was approved by the Senate in October before stalling after House Republicans signaled they wanted more scope to advance their own housing legislation. (Roundtable Weekly, Dec. 12)
  • A key feature of the House’s bill is an update to the HOME Investment Partnerships Program aimed at reducing red tape and expanding eligibility.
  • The bill also streamlines environmental review rules and enhances oversight of housing providers, among a range of other reforms.  
  • Chair Hill called the bill “historic” and said that it will “get to the root of the housing affordability challenges our country has experienced for the last several years.” (Chair Hill Press Release, Dec. 17)
  • The measure is now expected to go to a House floor vote in early 2026. (Housing Wire, Dec. 17) 

NFIP Reauthorization Advances

  • Additionally, the HFSC advanced the NFIP Extension Act of 2026 (H.R. 5577) to reauthorize the National Flood Insurance Program through Sept. 30, 2026.
  • While lawmakers emphasized the need for long-term reform, there was broad consensus that avoiding a lapse is essential ahead of the program’s Jan. 19 expiration.
  • RER has consistently supported long-term NFIP authorization and program reform.

RER will continue to engage with policymakers in support of legislation that increases housing supply and ensures that property owners can access the insurance protection that they need from increasingly costly natural disasters.

What the Government’s Reopening Means for CRE Policy Priorities

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The new stopgap extends government funding only through Jan. 30, leaving appropriators less than two months to complete the remaining FY2026 bills. With the government reopened, housing, permitting, tax, and energy policy issues are again at the forefront of congressional debates. (PoliticoPro, Nov. 13)

Housing

  • HOME Program: House Financial Services Housing and Insurance Subcommittee Chair Rep. Mike Flood (R-NE) plans to restart bipartisan work on legislation updating HUD’s HOME Investment Partnerships Program, which supports affordable housing development for low-income households. Rep. Flood hopes to hold a hearing with HUD Secretary Scott Turner, though the compressed calendar may limit year-end action. (PoliticoPro, Nov. 13) (Roundtable Weekly, July 18, Sept. 5)
  • Housing Supply: The Housing Supply Expansion Act of 2025 (S.2414) is a proposed set of provisions, not a standalone bill, that aims to increase housing supply by modernizing regulations and streamlining development processes. Key components include eliminating the permanent chassis requirement for manufactured homes to lower costs, simplifying environmental review processes, and providing incentives for local governments to adopt more pro-growth housing policies. It is part of broader legislative packages like the ROAD to Housing Act of 2025 (S. 2651) and the Strengthening Housing Supply Act of 2025 (H.R.5077).
  • The ROAD to Housing Act of 2025 (S. 2651), included in the Senate-passed National Defense Authorization Act (NDAA), is on track for a House vote in December, according to House Armed Services Chair Mike Rogers (R-AL). (PoliticoPro, Nov. 14) (Roundtable Weekly, Oct. 17)
  • Portable Mortgages: Federal Housing Finance Agency (FHFA) Director Bill Pulte said Wednesday the administration is actively evaluating portable mortgages, which would allow homeowners to transfer an existing mortgage rate when buying a new home, an attempt to break the current “lock-in effect.” (Bloomberg, Nov. 12)
  • RER President and CEO Jeffrey DeBoer raised a similar supply-focused idea during the National Summit on the Housing Affordability Crisis in September. He noted that affordability challenges stem from constrained supply, limited mobility in the for-sale market, and high development costs—and that portable mortgage–style tools could be part of the solution. (Roundtable Weekly, Sept. 5)

Permitting & Energy

  • Permitting remains one of the most consequential issues for real estate investment, energy transmission, construction timelines, and infrastructure reliability. House Republicans are preparing a major overhaul aimed at accelerating approvals of energy and infrastructure projects. (Roundtable Weekly, Oct. 10)
  • House Outlook: House Natural Resources Chair Bruce Westerman (R-AR) plans to mark up the SPEED Act, co-led by Rep. Jared Golden (D-ME), which would streamline NEPA reviews and limit legal challenges. Democrats secured “permit certainty” language to prevent agencies from indefinitely stalling approvals. (PoliticoPro, Nov. 12)
  • “To keep energy prices from escalating, we have to build more energy and more energy infrastructure, or the supply and demand is going to overpower any policy you can do in Washington D.C.,” Westerman said. “We’ve got to get electricity prices stabilized.” (PoliticoPro, Nov. 12)
  • Senate Outlook: Broader Senate negotiations may include updates to Clean Water Act reviews and reforms to transmission siting, both critical for meeting surging electricity demand from AI data centers and maintaining grid reliability.

Tax and Tariff Policy

  • Section 899: The U.S. continues to push for Organization for Economic Cooperation and Development (OECD) ratification of its carveout from the global minimum tax agreement (Pillar Two). Without an agreement, Republicans could revive legislation to enact “retaliatory tax measures” against foreign companies and taxpayers, including real estate investors, that reside in countries deemed to impose discriminatory taxes. (PoliticoPro, Nov. 13)
  • Over the weekend, President Trump floated the idea of issuing tariff rebate checks to American taxpayers, a “dividend” he suggested could total at least $2,000 per person, excluding high-income households. (ABC News | Bloomberg, Nov. 10)
  • These proposals have renewed speculation that Congress may pursue a tax package next year. A tax bill, pursued through budget reconciliation rules, could be a vehicle for other tax proposals related to health care, housing, and affordability issues.

Roundtable on the Road

  • This week, Jeffrey DeBoer participated in the Stanford Professionals in Real Estate (SPIRE) 2025 SREC Fall Conference in California with RER board member Michael Lowe (Co-CEO, Lowe), where he discussed the reopening of the government, the path ahead on appropriations, and RER’s policy priorities.
  • He also highlighted how recent election results have intensified focus on housing affordability, permitting reform, and practical policy solutions that support real estate investment and community growth.

RER will continue working with lawmakers to provide insights and advance practical solutions as Congress moves into a compressed legislative window.

Senate Passes Bipartisan ROAD to Housing Act

Posted on by abigail_grenadier

The U.S. Senate passed the Renewing Opportunity in the American Dream (ROAD) to Housing Act of 2025 (S. 2651) on Oct. 9, as part of its version of the National Defense Authorization Act (NDAA)—marking the first bipartisan, comprehensive housing package advanced in more than a decade. (MultiFamily Dive, Oct. 15)

ROAD to Housing Act

  • Introduced by Senate Banking Committee Chair Tim Scott (R-SC) and Ranking Member Elizabeth Warren (D-MA), the bipartisan bill passed the committee 24–0 in July before its inclusion in the NDAA. (CRE Daily, Oct. 14)
  • The legislation builds on years of bipartisan committee work, stakeholder engagement, and multiple hearings. It focuses on streamlining regulations, incentivizing construction, modernizing housing finance and disaster-recovery programs, and supporting vulnerable populations such as veterans and the homeless. (HousingWire, Oct. 10)
  • The bill incentivizes states and cities to boost housing supply by cutting red tape, streamlining federal inspections, and eliminating duplicative regulations. (The Hill, July 29)
  • Key pillars of the bill focus on expanding and preserving supply, improving affordability and access, enhancing accountability and fiscal responsibility, and strengthening oversight of federal housing programs. (Press Release, Oct. 9 | Roundtable Weekly, Aug. 1)
  • The legislation contains more than 40 provisions contributed by every committee member and reflects a coordinated effort to modernize housing policy at the federal level. (Politico, July 29 )
  • Sen. Warren said, “This landmark legislation—the first of its kind in more than a decade—takes important steps to boost the nation’s housing supply, improve housing affordability, and increase oversight and efficiency of federal regulators and housing programs. I look forward to working with my colleagues in the House to get the bill to the President’s desk.” (Press Release, Oct. 9)

What’s Next

  • The bill now heads to the House of Representatives for consideration before going to the President’s desk to be signed into law.

Roundtable on the Road

  • This week, RER President and CEO Jeffrey D. DeBoer was a featured speaker at NYU Stern’s Chen Institute National Apartment Finance & Investment Summit, where he was interviewed by Gregg Gerken (Former Head of Commercial Real Estate and Executive Vice President, TD Bank) on national policy outlook, housing affordability, housing finance reform and agency privatization, and capital availability.
  • “Safe, affordable housing is essential to strong communities and a healthy economy,” said DeBoer. “The nation’s chronic underbuilding has created an affordability crisis that demands coordinated action. The ROAD to Housing Act that recently passed reflects the kind of public-private collaboration needed to address the housing shortage by aligning federal incentives with local action to unlock private capital, expand supply, and strengthen communities nationwide.”

RER will continue engaging with policymakers and industry leaders to promote bipartisan solutions and regulatory reforms that expand housing supply, improve affordability, and strengthen economic stability.