There are several key policy areas that IREM will be monitoring over the next few months. This includes proposals that impact housing supply, the Department of Housing and Urban Development, and more.
Before the Trump administration came into office, the public had limited information on the administration’s potential housing policies. Still, President Trump has made it clear that addressing the housing crisis will be a top priority. On day one, President Trump signed a memorandum that stated the administration would take the “appropriate actions to lower the cost of housing and expand housing supply.” The language in the executive order was vague and left out details of a specific plan, however, Trump has been adamant about cutting back regulation to boost the housing supply.
President Trump is not the only one who wants to address the housing crisis. HUD Secretary Nominee Scott Turner also has ambitions to increase the supply of affordable housing. During his confirmation hearing on January 16th, Mr. Turner noted that he would “encourage localities to look at their zoning laws to make it easier and more flexible to build.” Mr. Scott also highlighted the importance of maximizing HUD’s budget and reevaluating current programs so they meet the needs of their recipients.
Nevertheless, HUD programs will likely see budget cuts, as President Trump has proposed. Housing advocates remain concerned as Mr. Turner indicated during his confirmation hearing that he would not commit to protecting federal housing and homelessness programs from significant spending cuts, according to a representative from the National Low-Income Housing Coalition.
Additionally, it’s important to address the elephant in the room: President Trump’s proposed tariff plan. The public is anxiously waiting to see how President Trump’s tariff plan will unfold. Not only will these tariffs impact your wallet, but they will likely impact the housing market. Economists agree that a U.S. trade war will only increase inflation and slow economic growth.
President Trump has promised to implement 25% tariffs on imports from Canada and Mexico, and 10% tariffs on imports from China. However, on February 3rd, President Trump paused the implementation on tariffs on Canada and Mexico for 30 days. The National Association of Home Builders recently put out an article stating that “two essential materials used in new home construction, softwood lumber, and gypsum (used for drywall), are largely sourced from Canada and Mexico.” Therefore, tariffs will increase the price of goods, leading to impacts on housing affordability.
IREM will continue to monitor the political landscape as we venture into these first 100 days of the second Trump administration. Members must stay up to date on legislative and regulatory proposals at the federal, state, and local levels.
Are you interested in learning more about IREM’s legislative efforts and how you can be an advocate for the industry? Contact the IREM Government Affairs team to learn more.