The Real Estate Roundtable (RER) is pleased to share our 2025 Annual Report, A New Era for America’s Buildings: Policy to meet increased energy demands, new technology, and evolving living and working environments.
Roundtable Leadership
This year’s report highlights how RER’s engagement drove policy wins in tax, capital and credit, housing, energy, and homeland security, amid one of the most intense legislative years in recent memory.
It also underscores commercial real estate’s vital role in powering jobs, growth, and communities nationwide, while ensuring our industry’s trusted voice is heard at the highest levels in Washington.
“The pace and complexity of policy this past year has been unprecedented, requiring rapid and well-coordinated responses,” said Jeffrey DeBoer, RER President and CEO. “Thanks to the engagement and expertise of our members, policy committees and national real estate partners, we have met each legislative challenge with substance, speed and credibility. I believe the past 12 months have been among the most challenging and most successful in our history.”
“In the year ahead, we will continue to evolve how we communicate our mission, align our membership with the future of the industry and focus on the most urgent issues,” said Kathleen McCarthy, RER Chair and Global Co-Head of Blackstone Real Estate. “Real estate anchors our communities and touches every part of American life—from where people live and work to how businesses grow. As the nation faces a housing crisis and urgent energy challenges, public policy must support a strong, resilient real estate sector that drives solutions, fuels economic growth and improves quality of life and opportunity for all.”
Explore the 2025 Report
RER’s FY2025 Annual Report details the organization’s mission and recent activities, and offers potential policy solutions to today’s pressing and far-reaching industry challenges, including:
The Senate Appropriations Committee on Thursday advanced bills to fund rental assistance, transit-oriented development loans, ENERGY STAR, and other key programs important to real estate, for the federal fiscal year that starts Oct. 1. The measures come as congressional leaders rush to complete appropriations work ahead of the Sept. 30 funding deadline to avoid a government shutdown.
HUD Programs
The full Senate Appropriations committee passed the “T-HUD” bill to fund the Departments of Transportation and Housing and Urban Development, on a strong bipartisan vote (27-1). (Senate Press Release, July 24) (PoliticoPro, July 24)
The bill allocates $73.3 billion overall to HUD—maintaining or increasing funding for rental assistance, homelessness services, and economic development. (Bill Summary | Text )
Project-based rental assistance would receive $17.8 billion, a roughly $900 million increase above FY25 enacted levels. This funding provides a full renewal of housing contracts serving about 1.2 million households.
Tenant-based rental assistance would receive $33.9 billion to renew Section 8 vouchers. (THUD bill report, p. 115) The Senate’s funding levels contrast with the Trump Administration’s May 2 proposal to significantly cut both tenant- and project-based assistance.
The Community Development Block Grant (CDBG) program would receive $3.1 billion, with $1.2 billion allocated for the HOME Investment Partnership program.
Last week, the House Appropriations Committee passed its version of T-HUD funding (Bill Text | Summary). The full House of Representatives has yet to vote on it. (Roundtable Weekly, July 18)
DOT Programs
The U.S. Department of Transportation (DOT) would receive $26.5 billion under the Senate T-HUD bill. (Senate press release, July 24).
This includes a modest increase (over current FY levels) for the Build America Bureau (BAB), which oversees the TIFIA/RRIF federal loan programs. These programs can provide favorable, long-term, low-interest federal loans for transit-oriented developments, including housing and property conversions near mass transit. (FAQs)
The funding bill’s underlying report (p. 22) explains that DOT and HUD shall establish a “task force” to improve the TIFIA/RRIF loan process, with a report due back to the House and Senate on ideas for removing “administrative and statutory barriers” to access financing.
Senate appropriators on Thursday also passed a bill to fund EPA and related agencies. The strong bipartisan vote (26-2) approved a $600 million increase over the House version that passed earlier this week. (PoliticoPro, July 24) (Bill Summary | Text)
The Senate’s bill text specifies $36 million next fiscal year, for the popular ENERGY STAR program, recognizing leadership in energy-efficient buildings, homes, and products.
The underlying report language for the Senate bill states that the Appropriations Committee “recognizes the value of and continues to support ENERGY STAR” – with a directive for EPA to “report back” on its plans for the program’s future implementation.
On the House side on Tuesday, the Appropriations Committee likewise showed support for ENERGY STAR. It passed a “manager’s amendment” on voice vote, instructing EPA to fund ENERGY STAR in FY’26. (PoliticoPro, July 22)
RER has long urged the “business case” to support the ENERGY STAR program. It is working with multi-industry partners in the real estate, manufacturing, consumer tech, and retail sectors to explain to Congress and the Administration why ENERGY STAR is critical to the national “energy dominance” agenda. (Roundtable Weekly, June 6; May 23).
Agency Reorganizations
It is not yet clear how any FY’26 funds appropriated by Congress may interact with particular internal plans from federal agencies to reorganize and eliminate programs.
An 8-1 decision in July by the U.S. Supreme Court allows the Trump administration to move forward with large-scale staff reductions and structural overhauls across 19 federal departments. (Politico, July 8)
As part of government-wide efforts triggered by the DOGE Executive Order, restructuring plans and layoffs are under consideration at the EPA. (Politico, July 17)
What’s Next
Senate Majority Leader John Thune (R-SD) has indicated that he wants to sign as many spending bills into law as possible, then use a short-term stopgap measure to cover the remaining agencies and avert a shutdown before the Sept. 30 deadline. (PoliticoPro, July 23)
Any specific agency reorganization and staff layoff plans may be released in the coming weeks.
RER will continue to monitor all developments on matters of appropriations and federal agency reorganizations relevant to real estate.
The intersection of housing shortages, escalating construction costs, and policy uncertainty is defining the commercial real estate (CRE) landscape as the second half of 2025 unfolds. Recent bipartisan legislative action on housing, along with fresh economic data, underscores the sector’s significant headwinds and potential opportunities.
Bipartisan Action on Housing Supply
Lawmakers introduced bipartisan legislation this week aimed at reducing local regulatory barriers to housing production. (ConnectCRE, July 24)
The Identifying Regulatory Barriers to Housing Supply (IRBHS) Act, championed by Sens. Todd Young (R-IN) and Brian Schatz (D-HI), along with Reps. Mike Flood (R-NE) and Brittany Pettersen (D-CO), targets restrictive local zoning rules and promotes transparency in community development. (HousingWire, July 23)
Rep. Flood (R-NE) emphasized the bill’s role in addressing “onerous local zoning policies,” aiming to facilitate increased housing construction. (PoliticoPro, July 23)
The legislation, previously known as the Yes in My Back Yard (YIMBY) Act, was passed by the House in 2018 and 2020 but stalled in prior sessions.
Next week, the Senate Banking Committee will hold its first bipartisan markup of housing legislation in over a decade, considering the Renewing Opportunity in the American Dream to Housing Act of 2025. The comprehensive measure aims to boost housing affordability, supply, and accountability. (PoliticoPro, July 25)
Housing Market Warning Signals
Moody’s Analytics Chief Economist Mark Zandi declared a “red flare” for housing this week, noting persistent mortgage rates near 7% and declining affordability.
He cautioned that housing could soon become a significant barrier to broader U.S. economic growth. (GlobeSt., July 22)
CRE Market Pressures
JLL’s Midyear Update presents a cautious outlook for CRE, highlighting stalled construction pipelines and lowered growth expectations for 2026, driven by uncertainties surrounding tariffs, labor market disruptions, and elevated interest rates. (JLL Midyear Update; Global Real Estate Outlook 2025)
JLL reports that material costs are estimated to rise 7 to 12 percent for the remainder of 2025, and construction labor growth is forecasted at just 1 percent, well below the average of 3 percent in recent years. (Commercial Property Executive, July 21)
Contractors report increased absenteeism, worsened labor shortages, and project delays exacerbated by intensified deportation enforcement.
RER Member Hamid Moghadam (CEO, Prologis) warned that “construction costs are going to go up radically,” saying, “all of this immigration stuff is putting more pressure on construction.” (GlobeSt., July 21)
Despite caution, some sectors remain bright spots, such as data centers, advanced manufacturing, and multifamily housing. Rebuilding efforts following natural disasters in states like California and Florida have also contributed to pockets of localized demand.
Federal Reserve policy uncertainty continues to weigh on CRE activity, exacerbated by recent tensions between the Trump administration and Fed Chair Jerome Powell. Markets are closely watching for clarity from the Fed’s July 29–30 meeting. (Financial Times, July 21) (NPR, July 24)
RER remains engaged in advocacy efforts to support policies enhancing housing supply, affordability, and economic stability. For more information, see our latest fact sheet on housing policy developments.
Bipartisan lawmakers this week discussed reforms aimed at reducing barriers to housing development and increasing supply during a congressional hearing on the nation’s housing shortage.
Key Takeaways
The House Financial Services Subcommittee on Housing and Insurance’s hearing, titled “HOME 2.0: Modern Solutions to the Housing Shortage,” highlighted the crucial need to expand the supply of affordable housing. (Committee Memo)
“This is a basic supply and demand issue,” said Rep. Mike Lawler (R-NY). “We are seven and a half million units underbuilt nationwide. We need to build more housing. Period.”
Modernizing the HOME Investment Partnership (HOME) Program, administered by the U.S. Department of Housing and Urban Development (HUD), was also a prominent focus of the hearing. HOME is a flexible and effective federal tool that empowers states and localities to build, buy, and rehabilitate affordable housing.
Subcommittee Chairman Mike Flood (R-NE) cited four major cost drivers—lengthy environmental reviews, “Build America, Buy America” rules, Davis-Bacon wages, and Section 3 mandates—as the “four horsemen of the housing apocalypse” hindering the HOME Program.
Ranking Member Emanuel Cleaver (D-MO) similarly called for modernizing the HOME Program, highlighting the inefficiencies created by the “massive number of rules” placed on developers building safe, decent, and affordable housing.
Eric Oberdorfer, Director of Policy and Legislative Affairs at the National Association of Housing and Redevelopment Officials (NAHRO), also noted the importance of the low-income housing tax credit (LIHTC), which is often used in conjunction with the HOME program to finance affordable housing.
RER Advocacy
The Real Estate Roundtable (RER) has consistently emphasized that America’s affordability crisis is driven by chronically low housing production. Tackling this shortfall requires a national transformation in housing policy that makes it easier to build housing of all types.
Changes made by the One Big Beautiful Bill (OBBB) Act signed this month, including expansions to the LIHTC, are projected to support the development of up to 1.2 million affordable rental units over the next decade. (Roundtable Weekly, July 11)
RER strongly supports key reforms discussed at this week’s hearing, including easing Davis-Bacon prevailing wage requirements, which place inordinately high costs on construction projects and inhibit access to federal loan and other housing construction incentives, and the HOME Program (Roundtable Weekly, April 2024, May 2023).
In May, RER joined a coalition of 15 national real estate organizations urging the Labor Department to repeal and revise its 2023 Davis-Bacon rule, citing outdated wage classifications that inflate project costs by up to 20% and discourage participation in federally funded housing. (Roundtable Weekly, May 23)
RER will continue to champion policies to bolster the availability of safe and affordable housing. See our fact sheet on the topic for more information.
The Real Estate Roundtable’s (RER) 2025 Annual Meeting this week included discussions with public officials and industry leaders on a range of issues affecting commercial real estate, including market conditions, tax policy, the House’s recent passage of the One Big Beautiful Bill Act, tariffs and trade, affordable housing solutions, energy policy, and evolving security threats.
Roundtable Leadership
RERChair Kathleen McCarthy (Global Co-Head of Blackstone Real Estate, Blackstone) opened the meeting by thanking members for their consistent engagement and highlighting the significance of RER’s collaborative efforts in navigating a rapidly evolving policy landscape. (May 2025 Policy Priorities and Executive Summary)
During the meeting, RER members approved the nominees for its FY26 board of directors and policy advisory committee officers, which were announced by RER Nominating Committee Chair Geordy Johnson (CEO, The Johnson Group).
Addressing the membership, RER President and CEO Jeffrey DeBoer emphasized RER’s ongoing commitment to enhancing member involvement through RER’s policy advisory committees and underscored the value of strategic partnerships with other national real estate organizations for proactive policy advocacy. (Meeting Agenda)
Meeting Speakers
The Honorable Kevin Hassett (Director, National Economic Council) presented the administration’s economic agenda, focusing on housing initiatives, factory expensing, and the outlook for growth.
Geopolitical expert John Sitilides (Principal, Trilogy Advisors LLC; National Security Senior Fellow, Foreign Policy Research Institute) gave a presentation titled “Washington & the World: The New Geopolitics of Great Power Competition.” During the session, he discussed the geopolitical implications of tariffs, NATO relations, and strategic U.S. interests, including maritime security.
(L-R): Hessam Nadji (President and CEO, Marcus & Millichap), Martha Gimble (Executive Director, The Budget Lab at Yale University), and Jonathan Pollack (President, Starwood Capital Group) provided macroeconomic insights, reviewed current and future CRE market trends, and spoke about challenges amidst tariff-induced uncertainty. (Hessam Nadji Presentation | Martha Gimble Presentation)
Anna Palmer (Founder & CEO of Punchbowl News) offered her perspective on legislative developments and negotiations, and the rise of influential figures within both political parties.
Policy Advisory Committee Meetings
Each of RER’s policy advisory committees met this week in conjunction with the Annual Meeting for in-depth policy discussions. The committees hosted several congressional staff and regulatory officials.
SPAC Chair Anthony E. Malkin (Chairman and CEO, Empire State Realty Trust, Inc.), Co-Vice Chairs Ben Myers (Vice President, Sustainability, BXP) and Katie Rothenberg (Vice President, ESG, AvalonBay Communities, Inc.) led discussions on EPA’s ENERGY STAR program, grid reliability, clean energy procurement, and nuclear energy deployment. (Agenda & Speakers)
Tax Policy Advisory Committee (TPAC)
TPAC Chair Josh Parker (Chairman & CEO, Ancora Group Capital), Vice Chair David Friedline (Partner, Deloitte Tax LLP), and the Committee discussed the broad range of tax proposals affecting real estate that are working their way through Congress in the budget reconciliation bill. Panelists included senior staff from the offices of the House Speaker, Ways and Means Committee, Senator Tim Scott (R-SC), and Senator Todd Young (R-IN), as well as the Treasury Department. In addition, tax experts from Baker McKenzie, Sullivan & Cromwell, and Brownstein led or moderated discussions concerning potential new taxes on foreign investors, regulatory initiatives, and Opportunity Zones. (Agenda & Speakers)
Sustainability Policy Advisory Committee (SPAC)
SPAC Chair Anthony E. Malkin (Chairman and CEO, Empire State Realty Trust, Inc.) and Vice Chairs Ben Myers (Vice President, Sustainability, BXP) and Katie Rothenberg (VP, ESG, AvalonBay Communities, Inc.) led discussions on (Agenda & Speakers)
Joint Real Estate Capital Policy Advisory Committee (RECPAC) and Research Committee Meeting
D. Michael Van Konynenburg (President, Eastdil Secured) provided an overview of conditions in real estate credit and capital markets.
Following a national policy update from RER’SRyan McCormick (SVP & Counsel, RER) and Chip Rodgers (SVP, RER), ResearchCommittee ChairSpencer Levy (Global Chief Client Officer & Senior Economic Advisor, CBRE) and Darin Mellot (Vice President of Capital Markets Research, CBRE) led a discussion on the evolving post Liberation Day impact of tariffs on commercial real estate markets.
Robert Rubano (Executive Vice Chairman, Head of Equity, Debt, & Structured Finance, Cushman & Wakefield) moderated a capital market roundtable with David Bouton (Co-Head of U.S. CMBS, Citigroup), Jack Gay (Senior Managing Director, Global Head of Real Estate Debt, Nuveen Real Estate), Kathryn Ogden, (Head U.S. Corporate Banking and Global Head, Real Estate Capital Partners (RECP), RBC Capital Markets), and Matt Salem (Partner, Head of RE Credit, KKR). (Agenda & Speakers)
Homeland Security Task Force (HSTF) Meeting
HSTF Chair Amanda S. Mason (Executive Director, Global Intelligence, Related Companies) facilitated a number of discussions on the current threat picture. These discussions included a review of the risks to commercial facilities from lithium-ion batteries with John Frank (AXA XL Risk Consulting). The meeting also included a series of briefs from the FBI regarding the threats from terrorist and transnational criminal organizations that are directly threatening U.S. citizens and commercial facilities. These discussions included updates on the role of the cartels in violent crime, the deaths of American citizens from synthetic opioids, and the facilitation of nearly three million illegal migrant arrivals in 2024, putting U.S. communities at risk. Also addressed were the range of cyber and intelligence threats from China, targeting our critical infrastructure. (Agenda & Speakers)
RER’s 2025 Annual Report will be distributed in July. Next on RER’s FY 2025 meeting calendar is the Fall Meeting, which will take place on October 27-28 (restricted to Roundtable-level members only).
Bipartisan lawmakers in both chambers are advancing legislative efforts to address the worsening national shortage of affordable housing, with a focus on updating financing tools and expanding tax incentives.
Senate Legislation
Senators Ruben Gallego (D-AZ) and Dave McCormick (R-PA) introduced the bipartisan Housing Affordability Act (formerly Homeownership Affordability Act) to increase the supply of affordable housing by increasing the Federal Housing Administration’s (FHA) outdated multifamily loan limits. (PoliticoPro, April 30)
“To tackle the affordable housing crisis, we need to make building homes easier and cheaper. But outdated regulations are holding us back,” said Senator Gallego. “By updating a nearly two-decade old loan limit, the Housing Affordability Act will expand access to affordable loans for building multifamily housing and ultimately bring down housing costs.” (Sen. Gallego Press Release, April 30)
The bill updates the inflationary index used to set loan limits from the Consumer Price Index to a more accurate construction cost index to better reflect today’s building costs and boost housing production.
Without this fix, most areas are misclassified as “high-cost,” limiting HUD’s ability to support new multifamily developments and deepening the national housing crisis.
“Housing availability and affordability problems are directly tied to the significant shortage of housing units nationwide,” said Jeffrey D. DeBoer, President and CEO of The Real Estate Roundtable.
“By increasing the Federal Housing Administration’s multifamily loan limits to more accurately reflect individual market costs, the bill introduced today by Senators Gallego and McCormick would increase apartment construction, add supply, and help bring down housing costs. In short, enactment of this bill would make housing more available and affordable for millions of American families.”
The Housing Affordability Act is also endorsed by: National Association of Home Builders; National Association of REALTORS®; National Multifamily Housing Council; National Housing Conference; National Apartment Association; Institute of Real Estate Management; National Affordable Housing Management Association; National Leased Housing Association Council for Affordable and Rural Housing; National Association of Housing Cooperatives; and Arizona Multihousing Association.
House Legislation
In April, Rep. Darin LaHood (R-IL) and Suzan DelBene (D-WA) reintroduced The Affordable Housing Credit Improvement Act (AHCIA) with broad bipartisan support from more than 100 members across 30 states, aimed to expand and strengthen the low-income housing tax credit (LIHTC). (Affordable Housing Finance, April 8)
The Affordable Housing Credit Improvement Act will support the financing of nearly two million new affordable homes by:
Increasing the number of credits allocated to each state by 50 percent for the next two years and making the temporary 12.5 percent increase permanent.
Increasing the number of affordable housing projects that can be built using private activity bonds— a provision that stabilizes financing for workforce housing projects built using private activity bonds by decreasing the amount of private activity needed to secure Housing Credit funding.
Improving the Housing Credit program to serve at-risk and underserved communities, including veterans, victims of domestic violence, and rural Americans.
“To address this growing crisis across the country, Congress must strengthen tools to drive investment into affordable workforce housing and expand housing options for hardworking families nationwide. I am proud to reintroduce the bipartisan Affordable Housing Credit Improvement Act alongside Representatives DelBene, Tenney, Beyer, Feenstra, and Panetta to strengthen our communities and support economic development,” said Rep. LaHood (R-IL). (Rep. LaHood Press Release, April 8)
A Senate companion bill is expected to be introduced in the coming weeks.
Opportunity Zones
Major provisions from the 2017 Tax Cuts and Jobs Act (TCJA), including Opportunity Zones (OZs), risk expiration without congressional action, threatening economic revitalization projects nationwide.
According to a recent CoStar News analysis, apartment openings in OZs surged 151% to 143,219 units last year compared to 2017—far outpacing the national increase of 63% over the same period. (CoStar, April 16)
The analysis also found that Opportunity Zones spurred the development of approximately 68,000 more housing units than would have been built without the tax incentive, underscoring the effectiveness of OZ incentives in driving investment into underserved communities.
RER urges Congress to advance housing legislation that expands proven tools like Opportunity Zones, LIHTC, and FHA loan programs—catalysts for affordable housing, job creation, and long-term economic growth in underserved communities.
Housing policy remains at the forefront this week as The Real Estate Roundtable (RER) responded to the Federal Trade Commission’s (FTC) request for public comment on the impact that the large-scale single-family rental (SFR) owner-operators are having on the housing market; the Trump administration continues to explore privatizing Fannie Mae and Freddie Mac; and Federal Housing Finance Agency (FHFA) Director Bill Pulte rescinded a renter protection directive.
Single-Family Rental Housing Study
RER and Nareit responded this week to the FTC’s request for public comment regarding the impact that large-scale Single-Family Rental (SFR) operators and institutional investors are having on home prices and rents in the single-family housing. (Letter)
The FTC aims to assess whether “mega investors” influence housing prices negatively.
The letter underscores that institutional capital is essential to expanding housing supply and addressing the chronic housing shortage affecting affordability nationwide.
As stated in the letter, “Single-family rentals, now part of an institutionally supported asset class, add balance to the U.S. housing market. SFRs play an important role in the nation’s housing landscape by boosting supply and offering flexible, high-quality housing options that have broad demographic appeal at lower price points compared to home ownership.”
SFR homes constitute only 32 percent of rental units nationally, consistent with historical averages.
Institutional investors accounted for a mere 0.3 percent of single-family home purchases in the past year. (BisNow, Feb. 3)
The letter emphasized that institutional investors own less than 0.5 percent of U.S. single-family homes, thus not driving the housing affordability crisis.
GSE Reform
The Trump administration is actively exploring housing finance reform options, including privatizing Fannie Mae and Freddie Mac. (WSJ, March 23)
Recent proposals suggest transferring the Treasury’s stakes to a newly envisioned U.S. sovereign wealth fund. Treasury Secretary Scott Bessent recently discussed this possibility on a podcast, although he provided limited details. (Bloomberg, March 23)
Director Bill Pulte and Sec. Bessent have stated that they would like Freddie and Fannie to go private, but not at the cost of disrupting mortgage rates. (Commercial Observer, March 21)
An executive order is also under consideration, which could direct federal departments to examine the privatization of Fannie and Freddie.
This proposal has drawn substantial attention from housing industry leaders concerned about potential impacts on mortgage markets and affordable housing.
Tenant Protection Policy Rescinded
This week, FHFA Director Pulte rescinded a Biden-era directive requiring multifamily housing providers with Fannie Mae or Freddie Mac-backed mortgages to provide renters a 30-day rent increase notice, lease term expirations and a five-day late payment grace period. (GlobeSt, March 26)
Pulte contended that this directive increased compliance burdens for lenders and property owners, noting existing state and local regulations already cover lease notices and late fee guidelines.
RER along with other national real estate organizations Industry groups such as the National Apartment Association and the National Multifamily Housing Council had opposed the policy, arguing it imposed undue burdens on housing providers. (Bisnow, March 25 | Roundtable Weekly, Jan. 2023)
This move aligns with broader industry efforts advocating fewer regulatory constraints to foster housing market stability.
Department of Housing & Urban Development (HUD) Secretary Scott Turner will be a featured speaker at The Roundtable’s Spring Roundtable Meeting on April 8, 2025 (Roundtable-level members only).
President Donald Trump’s second term is rapidly taking shape, with sweeping executive orders, quick nominations and bold policy announcements advancing in the first few days of his second administration. From tax policy to housing, immigration, and energy initiatives, the commercial real estate sector faces a dynamic and fast-changing landscape.
Tax Policy
TCJA Renewal: Efforts to extend key provisions of the 2017 Tax Cuts and Jobs Act (TCJA) are a key priority for the Trump administration and Republicans in Congress, with significant implications for commercial real estate.
A number of RER priorities are at stake, including maintaining the reduced tax rate on capital gains, extending Opportunity Zones and the Section 199A deduction, safeguarding like-kind exchanges and enacting federal tax incentives for property conversions to address the housing shortage. (Roundtable Weekly, Jan. 10)
RER, alongside a coalition of over 230 trade groups, wrote to Congress this week in support of the newly introduced Main Street Tax Certainty Act of 2025, which would make the 20-percent deduction for small and family-owned businesses Section 199A permanent to sustain economic growth, protect millions of jobs, and support Main Street competitiveness. (Sen. Daines Press Release, Jan. 23)
The content of the reconciliation package continues to be heavily debated, with multiple areas of intra-party disagreement among Republicans to overcome in order to reach a deal. Concerns about pay-fors, the growing debt, budget cuts and proposals to eliminate the state and local tax deduction (SALT) remain. (Politico, Jan. 22)
RER President & CEO Jeffrey DeBoer appeared on Marcus & Millichap’s 2025 Economic & CRE Outlook webinar with a panel of industry leaders discussing the macro environment, the potential policies of the new administration and tariffs, affordable housing, tax policy expectations and more.
Tariffs
Proposed Tariffs: Trump has signaled a desire to implement sweeping tariffs, including a 25% tariff on goods from Mexico and Canada that could go into effect on Feb. 1. Trump has also considered a universal 20% tariff on all imports and a 60% tariff on China. (CNN, Jan. 21)
These measures are aimed at boosting domestic manufacturing and addressing trade imbalances but could have ripple effects on construction costs and material availability. Any tariffs on imported materials like steel, aluminum and lumber are likely to drive up costs for developersand impact efforts to address the housing shortage. (BisNow, Jan. 17)
The scale and scope of the President’s tariff plans are in flux. Trump’s advisors have reportedly considered a phased-in tariff approach. It’s also possible that Trump makes use of the White House’s exemption authority to protect certain industries or goods deemed vital. (Bloomberg, Jan. 13)
Regulatory Work
President Trump also signed an executive order freezing all ongoing regulatory work across the federal government, halting the proposal or publication of new rules until reviewed and approved by his administration.
The freeze delays the effective date of recently published rules by 60 days, allowing time to decide which Biden-era regulations to keep, rewrite, or discard. (National Law Review, Jan. 23)
As with many other parts of the U.S. financial regulatory framework, the pending Basel III Endgame proposal may end up being reproposed with a capital neutral scheme, giving a potential boost to liquidity and credit capacity under the new Trump administration.
Disaster Aid and NFIP Extension
California Fires: Congress and the new administration will soon need to providebillions of dollars inaid to assist those affected by the Los Angeles wildfires. The catastrophe could reach up to $275 billion, with then of thousands of homes and businesses will need to be rebuilt, making federal assistance essential. (Roundtable Weekly, Jan. 17)
NFIP: The increasing severity of natural disasters—including the devastating hurricanes last year—has increased the importance of the National Flood Insurance Program (NFIP), whichis set to expire on March 14 unless reauthorized. The Senate Banking, Housing and Urban Affairs Committee held a hearing on Thursday to discuss the program’s renewal. (Politico, Jan. 22)
Housing
Fannie Mae and Freddie Mac Privatization: Trump’s team is expected to resume efforts to privatize the government-sponsored enterprises (GSEs), which could significantly reshape multifamily financing markets.
Trump has nominated Bill Pulte, to lead the Federal Housing Finance Agency (FHFA), which oversees the GSEs—a move experts say is part of Trump’s push towards privatization. (CRE Daily, Jan. 17)
Deregulation to Spur Housing Development: Trump has pledged to roll back environmental and building regulations that hinder housing construction. This includes streamlining permitting processes, relaxing restrictions and accelerating project timelines.
Trump’s nominee for the Department of Housing and Urban Development (HUD), Scott Turner, has pledged to cut regulations that he says are stifling development. These efforts aim to increase housing supply, particularly in high-demand markets. (BisNow, Jan. 17)
Immigration and Labor
Deportations: Trump’s plans for mass deportations could have significant effects on the housing industry. Immigrants make up over 25% of the construction laborer workforce in the U.S., an industry where more workers are sorely needed—especially if affordable housing goals are to be met. (Bisnow, Jan. 17)
Depending on the extent of Trump’s deportation plans, CRE projects may face rising costs and delays if the construction workforce is severely affected. (NBC News, Jan. 21)
According to the Associated Builders and Contractors, the construction industry needs 439,000 new workers this year to meet rising demand. The need for construction resources is urgent, with Los Angeles requiring rebuilding after devastating fires and a nationwide surge in data center construction on the horizon. (Axios, Jan. 24)
Energy and Infrastructure
Emergency Powers: On the day Trump took office, he declared an energy emergency—giving the White House new authority to speed up the manufacture of certain products under the Defense Production Act, issue waivers on certain gasoline restrictions and restrict energy trade, among other powers—likely in service of Trump’s stated effort to “drill, baby, drill.” (The Hill, Jan. 20)
Data Centers: Trump also announced a $500 billion “Stargate” initiative designed to expand AI-focused data center infrastructure. The executive order prioritizes the use of fossil fuels to power these facilities and streamlines permitting processes for large-scale projects. (AP News, Jan. 22)
The investment could help hasten the buildout of high-demand data centers, which are limited by the availability of energy resources and infrastructure. (BisNow, Jan. 22)
Looking Ahead
With the whirlwind of activity coming out of the Trump administration and Congress, RER will continue to proactively evaluate policy developments as legislative efforts and White House implementation of executive orders progress.
Scott Turner, President-elect Donald Trump’s nominee for Secretary of Housing and Urban Development (HUD), emphasized the transformative potential of Opportunity Zones (OZs) and collaboration with the private sector during his Senate nomination hearing on Thursday. (The Hill, Jan. 16)
Senate Hearing Recap
At the hearing, members of the Senate Committee on Banking, Housing, and Urban Affairs asked HUD nominee Scott Turner how he would address pressing housing challenges, including the affordable housing crisis, the rising rate of homelessness, and HUD reform. (Turner Testimony)
There is an estimated shortage of 5.5 million housing units, resulting in high rents and home prices in many parts of the country. Additionally, HUD released its 2024 Annual Homelessness Assessment Report, which found an 18 percent increase in the estimated point-in-time count of homeless individuals from 2023 to 2024.
Speaking on the housing challenges facing the country, Turner said, “We have a housing crisis in our country. We have the American people and families that are struggling every day…HUD, if you will, is failing at its most basic mission, and that has to come to an end.”
Turner continued, “As a country, we’re not building enough housing. We need millions of homes, all kinds of homes, multifamily, single-family, duplex, condo, manufacturing housing, you name it…I believe that we need to bring HUD staff back to the office to do the job and empower them to serve the American people.”
HUD Nominee’s Policy Priorities
Turner, who previously ran the White House Opportunity and Revitalization Council during Trump’s first term, highlighted Opportunity Zones, public-private partnerships, and tailored local solutions as key elements of his plan to address the housing crisis.
As executive director of the Council, Turner was responsible for carrying out the implementation of Opportunity Zones, which were passed as part of the Tax Cuts and Jobs Act of 2017 (TCJA).
The Roundtable—along with 22 other real estate organizations—urged the Senate to approve Turner’s nomination, writing in a Jan. 14 letter to the Senate committee that Turner is well-equipped to lead as Secretary of HUD.
The Power of Opportunity Zones
RER has long championed Opportunity Zones (OZs) as a transformative tool to stimulate economic growth and increase the supply of affordable housing in low-income areas. By creating tax incentives for investments in designated low-income census tracts, OZs have channeled investment into areas most in need.
Since its inception, the Opportunity Zones program has raised nearly $100 billion in private capital, catalyzed the creation of more than 500,000 jobs, and spurred multifamily housing developments in underserved areas. 20% of multifamily units under construction were located in OZs as of early 2024. (The New Localism, Jan. 9)
Given the program’s success, prominent experts, including Bruce Katz (Founding Director of the Nowak Metro Finance Lab at Drexel University) and Steven G. Glickman (co-founder and former CEO of the Economic Innovation Group, former senior economic adviser in the Obama White House) have advocated for making OZs a permanent part of the tax code to ensure its long-term benefits. (Governing, Jan. 2)
RER has called on Congress to improve and extend the program, which is set to expire along with other key provisions of the TCJA at the end of this year.
RER will continue to work with policymakers in Congress and officials at HUD to build on the success of programs like Opportunity Zones. Through bipartisan policies that harness the power of the private sector to significantly increase the supply of affordable housing, the U.S. can make meaningful progress toward ending the housing crisis.
On Tuesday, a coalition of national real estate associations, including The Real Estate Roundtable (RER), wrote to Congress urging support for the Renewing Opportunity in the American Dream to Housing Act (ROAD) to Housing Act, (S. 5027 | H.R. 990). Introduced by Senator Tim Scott (R-SC) and Representative French Hill (R-AR), this comprehensive legislation aims to make housing more affordable and widely available. (Letter, Dec. 10)
Addressing Housing Affordability
The nation faces a persistent housing affordability crisis rooted in a critical shortage of supply. Addressing this challenge requires bipartisan solutions that foster collaboration across government agencies, industry stakeholders, and policymakers.
The coalition praised the bill as “a step forward in addressing the root cause of housing affordability challenges—supply shortages.” (Letter, Dec. 10)
The key pillars of the bill are increasing access to affordable housing, promoting opportunity, incentivizing local solutions, and ensuring proper oversight and accountability over federal housing programs. (Sen. Scott Press Release, Sept. 12)
Rep. French Hill (R-AR) said, “With the ROAD to Housing Act, we are taking real steps toward creating a housing market that benefits everyone—renters, homeowners, and families striving for stability. I thank my friend Senator Tim Scott for spearheading this legislation in the Senate.” (Rep. Hill Press Release, Oct. 15)
The letter emphasized the importance of bipartisan collaboration in crafting sustainable, effective housing policy solutions.
ROAD to Housing Act
The ROAD to Housing Act introduces targeted reforms and initiatives, including:
Enhanced financial literacy and housing counseling: Empowering individuals with tools to navigate homeownership and rental markets.
HUD’s Moving to Work (MTW) program: Fully authorizing this initiative to improve housing outcomes for low-income families. The MTW program helps public housing authorities and agencies implement innovative solutions that support affordable housing goals
Boosting affordable housing construction: Encouraging development through construction grants and support for small-dollar mortgage lending.
Opportunity Zones focus: Promoting affordable housing projects in designated Opportunity Zones to drive investment in underserved areas.
Federal coordination: Establishing regular dialogue between federal agencies and Congress to align housing policies with on-the-ground needs.
The Roundtable and its coalition partners will continue to educate and collaborate with policymakers to advance the ROAD to Housing Act and ensure that housing supply and affordability remain top priorities.
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