Federal policies can have a profound influence on the real estate market, especially when it comes to housing costs and affordability. In recent years, measures like tariffs on construction materials and stricter immigration enforcement have contributed to higher building costs and reduced labor availability. These factors, in turn, drive up home prices and rents, exacerbating the housing affordability crisis. Home builders warn that trade barriers such as tariffs “increase the cost of construction and discourage new development,” with consumers ultimately paying more for homes. Likewise, researchers find that aggressive immigration enforcement can “slow down construction [and] increase home prices,” undercutting efforts to make housing more affordable. This article examines how these federal policies – from tariffs on lumber, steel, and aluminum to immigration and monetary policies – are impacting housing costs and the overall real estate market.

Tariffs on Construction Materials

One of the clearest ways federal policy affects housing costs is through tariffs on imported construction materials. Tariffs act as a tax on imports, raising the price of goods like lumber, steel, aluminum, and drywall. Because roughly 70% of the softwood lumber and gypsum (drywall) used by U.S. home builders is sourced from Canada and Mexico, respectively, these materials are especially vulnerable to trade penalties. In early 2025, the National Association of Home Builders (NAHB) sounded the alarm when a 25% tariff was announced on all imports from Canada and Mexico, noting that such a move “will have the opposite effect” of lowering housing costs. As NAHB emphasized, “tariffs on lumber and other building materials increase the cost of construction … and consumers end up paying for the tariffs in the form of higher home prices.”In other words, import taxes get passed along until they land squarely on homebuyers’ wallets.

Lumber Tariffs and Home Prices

The U.S. reliance on Canadian lumber illustrates the impact. Softwood lumber is critical for home framing, yet about 30% of it is imported (mostly from Canada). Starting in 2017, the U.S. imposed duties averaging around 20% on Canadian softwood lumber. This policy, combined with other supply pressures, drove lumber prices to record heights by 2018. NAHB analysis found that the spike in lumber costs raised the price of a typical new single-family home by roughly $9,000. In fact, framing lumber prices jumped nearly 60% between early 2017 and mid-2018. These increases “priced out more than 1 million households from being able to buy a newly built home,” according to NAHB’s chief economist Robert Dietz. Lumber prices later swung wildly – soaring even higher in 2020-2021 amid pandemic shortages, then moderating – but tariffs have kept a price floor in place. As of 2024, tariffs on Canadian lumber still stand at about 14.5%, and trade authorities have considered lifting them to nearly 40%. Each uptick directly feeds into higher construction costs and, by extension, higher home prices.

Steel, Aluminum, and Other Materials

Tariffs have not been limited to lumber. The federal government also enacted Section 232 tariffs on imported steel (25%) and aluminum (10%) for national security reasons in 2018. These metals are fundamental in construction – from structural beams and rebar to siding, roofing, and appliances. U.S. builders quickly felt the effects as prices for metal products climbed. (For example, the producer price index for iron and steel spiked 83% in just 19 months during 2020–2021.) Likewise, many finished goods used in homes – lighting, cabinets, countertops, HVAC equipment, and appliances – are imported from China and became subject to additional Section 301 tariffs. When those costs rise, the expense of building or remodeling a home rises accordingly. Builders either absorb the hit to already-thin margins or pass it on to buyers. Often, it’s a combination, with some projects delayed or canceled due to cost concerns. Industry groups estimate that proposed new tariffs on Canada, Mexico, and China could add another $3–4 billion to U.S. construction costs annually. Ultimately, tariffs large and small stack up, making each new home more expensive to produce. This reality has prompted calls for policy changes – NAHB is actively urging policymakers to “exempt building materials from tariffs” to ease the pressure on housing affordability.

Immigration Enforcement and Labor Shortages

Labor is another critical ingredient in housing, and federal immigration policies have a direct effect on the construction workforce. Immigrants – both authorized and undocumented – comprise a significant portion of U.S. construction labor. In fact, foreign-born workers made up about 25.5% of the construction workforce as of 2023, the highest share on record. In key trades like carpentry, framing, and masonry, roughly one in three workers is an immigrant. A subset of these workers lack legal status (over 13% of the construction workforce, by some estimates), but they nonetheless play a vital role in homebuilding, especially in regions like Texas and California where they make up half of the construction crews. This means that strict immigration enforcement or policies that significantly reduce immigrant labor can create acute labor shortages on job sites.

Impact of Immigration Crackdowns

A recent study by economists Troup Howard and colleagues examined what happens to housing when immigrant labor is curtailed. They analyzed the federal Secure Communities program (2008–2013), which ramped up deportations of undocumented individuals. The findings were striking: counties that implemented the program saw a substantial decline in construction activity, equivalent to “about a year’s worth of construction over the four-year period” following enforcement. With fewer workers available, homebuilding in those areas slowed to a crawl. The reduced supply of new homes then led to higher prices for both new and existing houses. Notably, the research found that many of the jobs vacated by deported workers were not filled by native-born Americans – roughly half of the positions remained unfilled. In other words, the labor gap wasn’t easily closed by the domestic workforce, leading to a net loss of construction labor and productivity.

Real-world data from past immigration crackdowns reinforce this concern. When roughly 300,000 undocumented workers were removed from the country between 2008 and 2013, many construction jobs went unfilled and housing construction was delayed significantly. On average, counties experienced a one-year delay in construction timelines, and the cost of new housing jumped by about 20% as a result. This kind of cost increase can push homeownership out of reach for many families. As one research director noted, deporting large numbers of construction workers “would push up construction costs and lead to delays in building new homes, making housing even less affordable in many parts of the country.”In markets heavily reliant on immigrant labor, experts predict projects could stretch dramatically – for example, an 18-month build might take five years – if that labor force is suddenly removed.

Existing Labor Shortage

Even without new immigration restrictions, the construction industry has been grappling with a chronic labor shortage. Builders frequently cite the difficulty of finding enough skilled workers – from electricians to drywall installers – as one of their top challenges. As of late 2023, there were roughly 378,000 to 459,000 unfilled construction job openings in the United States, up significantly from a few years prior. This gap between demand and supply of labor has steadily driven up wages for construction workers. By 2023, construction wage growth (nearly 6% year-over-year) was outpacing even the increases in materials costs. Higher wages, while good for workers, translate into higher overall project costs.When immigration policies further constrain the labor pool, builders must compete even more fiercely for the limited number of carpenters, plumbers, and other tradespeople. They often have to pay higher rates or face project delays due to understaffing. Those higher labor costs get baked into the price of a new home or remodeling job. NAHB has long warned that labor shortages are a key driver of rising home prices. If federal enforcement or visa policies substantially reduce the construction workforce, this exacerbates the trend, making it that much harder to produce housing at prices affordable to middle-class and first-time buyers. The consensus among economists and industry experts is that a balanced approach is needed – one that addresses security and legal concerns but also recognizes the essential contribution of immigrant workers to housing supply. Without enough hands on the job site, expanding housing production to meet demand is an uphill battle, and the costs of scarcity are borne by homebuyers and renters.

Supply Chain Disruptions and Material Costs

Beyond tariffs and labor, broader supply chain issues have also played a major role in housing costs. In the last few years, global supply chain disruptions – from trade disputes to pandemic-related bottlenecks – have made it harder and more expensive to procure building materials. When key inputs like lumber, cement, or fixtures are delayed or in short supply, their prices climb dramatically. These higher material costs then feed directly into construction budgets and home prices.

Pandemic-Era Supply Shocks

The COVID-19 pandemic created an unprecedented shock to the supply chain. Overseas factories producing everything from light fixtures to furniture temporarily shut down. Transportation networks were strained by surging demand and health restrictions. Shipping costs skyrocketed – by late 2020 and 2021, freight rates had doubled or even tripled, and load-to-truck ratios were up 400–1700% compared to pre-pandemic levels. At the same time, millions of Americans suddenly wanted to buy houses or renovate homes, fueled by low interest rates and remote work. The result was a classic supply-demand mismatch: not enough materials chasing a surge in orders.Prices for construction commodities took off. For example, lumber, which already was trending up due to tariffs, went into overdrive. A standard two-by-four that cost around $400 per thousand board feet in early 2020 shot up to over $1,100 by spring 2021– nearly a 3x increase in about a year. Across 2021, the overall cost of construction materials jumped almost 20%, the largest annual increase on record. Critical products saw extreme spikes: steel mill products more than doubled in price (the Producer Price Index for steel rose 127% year-over-year), plywood prices more than doubled, and copper, plastics, and drywall all saw steep climbs. According to the U.S. Bureau of Labor Statistics, the index for overall construction materials and components was up 20% in July 2021 compared to a year prior. Such rapid cost increases, driven by supply chain bottlenecks and trade policies, added tens of thousands of dollars to the cost of building a home.These supply chain woes meant that builders were paying far above normal prices for many inputs. In some cases they faced months-long delays for items like windows, appliances, or siding, forcing costly project extensions. The volatility was unprecedented – lumber prices would hit all-time highs one month and then plummet the next, while other materials like gypsum or concrete saw more steady increases without much relief.

Lasting Effects and Trade Policy Interplay

While some pressures have since eased (global shipping rates, for instance, came down from their peak by 2023), material costs remain elevated. By early 2024, construction material prices and contractors’ bid prices were still about 40% higher than pre-pandemic levels. Supply chain disruptions have had a cumulative effect, essentially resetting the baseline cost of building at a much higher level than before. Trade policies can amplify or alleviate these issues. For example, if tariffs on Canadian lumber had been removed, the lumber supply shock might have been less severe, potentially dampening the price spike. Conversely, new trade barriers (such as proposed tariffs on Chinese goods or new Buy American rules) could further strain certain supply lines.

Another factor is energy and transportation costs – high oil prices increase the cost of manufacturing (for asphalt shingles, PVC pipes, etc.) and shipping materials. Geopolitical events like the 2022 war in Ukraine also affected supplies (e.g. lumber and metals in Europe) and fuel costs globally. All these elements feed into what builders pay for materials.

In summary, the supply chain turmoil of recent years has significantly raised the cost floor for home construction. Even as acute disruptions fade, the prices of many building inputs remain well above their historical norms. If federal trade policies add friction (through tariffs or export restrictions) or if global events cause further bottlenecks, builders will continue to face inflated material costs. This underlines the need for resilient supply chains and careful consideration of how policies like tariffs might compound broader supply challenges.

Interest Rate Policies and Inflation

Monetary policy is another federal lever that indirectly but powerfully impacts the housing market. In response to economic conditions – particularly inflation – the Federal Reserve adjusts interest rate policy, which in turn influences mortgage rates, construction financing, and ultimately housing affordability. Over the past few years, Americans have experienced both ends of the spectrum: record-low interest rates in 2020 that boosted housing demand and prices, followed by rapid rate hikes in 2022–2023 that cooled the market but made financing a home far more expensive.

Rising Inflation and Fed Response: Coming out of the pandemic, inflation in the United States accelerated dramatically. By June 2022, consumer price inflation hit 9.1% year-over-year – the highest rate in 40 years. Everything from fuel to food to building materials was costing more. Housing was a major part of this inflation story, as home prices and rents surged (home prices nationally rose roughly 38% from early 2020 to mid-2022). The Federal Reserve, aiming to restore price stability, embarked on an aggressive campaign of interest rate increases. Throughout 2022 and into 2023, the Fed raised its benchmark federal funds rate from near 0% to over 5% – one of the fastest monetary tightening cycles on record. This shift was intended to curb demand in interest-sensitive sectors like housing, in order to slow inflation.

The impact on mortgage rates was swift. The average rate on a 30-year fixed mortgage, which was around 3% in early 2021, more than doubled. By late 2022, mortgage rates had breached 7%, and they peaked around 7.75% in October 2023– the highest mortgage rates since 2001. For context, a $300,000 30-year loan at 3% has a monthly principal and interest payment of about $1,265, whereas at 7.75% the payment soars to about $2,150. This rapid increase in financing costs dealt a heavy blow to homebuyer affordability. Many buyers who could qualify for a loan or afford a certain price point in 2021 found by 2023 that the same priced home was now out of reach due to higher monthly payments.

High interest rates also affect builders and developers. Construction loans and acquisition loans became more expensive, meaning builders faced higher carrying costs for projects. NAHB analysts note that tight monetary policy hurts housing supply by raising the cost of AD&C (acquisition, development, and construction) financing. When it costs more to borrow money to build homes, fewer projects pencil out as profitable, which can further constrain the supply of new housing. Thus, even as higher rates helped cool off bidding wars and rapid price gains, they introduced a new obstacle for adding inventory.

Affordability Crunch: The combination of high home prices (a legacy of the supply shortages and stimulus-fueled demand of 2020–2021) and higher interest rates created an affordability squeeze. By 2023, the national housing affordability index had fallen to its lowest level in decades. For example, in August 2023 the typical monthly mortgage payment was 26% higher than it had been just one year prior, far outpacing income growth. First-time buyers were especially hard-hit, as rising rents made it difficult to save for down payments even while the cost of buying was surging. Many prospective buyers pressed “pause” on their home search, and home sales activity dropped sharply in 2022–2023. The National Association of REALTORS® reported that by late 2023, pending home sales had fallen to their lowest levels since the Great Recession era.

While these demand-side pressures eased home price appreciation (some overheated markets even saw slight price declines in 2023), housing costs remained very high relative to incomes. In effect, the affordability problem shifted from being mostly about purchase price to being about the ongoing cost of financing. Renters, too, felt the pinch, as many who gave up on buying remained in the rental market, keeping rents elevated.

It’s important to note that controlling inflation via interest rates has its limits in solving the housing affordability crisis. Much of the issue is structural lack of supply, which monetary policy can’t directly fix. As one housing economist put it, the U.S. faces a “broad-based housing shortage” largely because “policymakers…failed to enact policies that are conducive to housing construction.”

High interest rates alone can’t build new homes; in fact, by raising construction costs, they can worsen the supply shortfall. The Fed’s actions are a blunt tool – necessary to tame overall inflation – but they come with side effects for housing. On the other hand, if and when inflation moderates, there is hope that interest rates will ease, taking some pressure off buyers and builders (a dynamic we’ll explore in the outlook section).

Expert Opinions from Economists

Housing is a complex market influenced by many policy-driven inputs, and experts across the industry have been vocal about the cumulative impact of recent federal actions. Here we highlight a few perspectives from economists and analysts on how tariffs, labor shortages, and other policies are driving housing costs:

  • National Association of Home Builders (NAHB): Industry leaders and economists at NAHB have repeatedly pointed to rising material costs and labor constraints as major factors behind expensive housing. NAHB Chairman Carl Harris, reacting to broad new tariffs, warned that increasing trade barriers will raise costs and “make housing more costly” for consumers. Similarly, NAHB’s research shows that even modest cost upticks price many Americans out of the market – for example, a mere $1,000 increase in the price of a home can disqualify approximately 150,000 households from being able to purchase it. NAHB’s Chief Economist Robert Dietz lamented that the run-up in lumber prices due to tariffs had priced out over 1 million potential homebuyers in recent years. The organization continues to advocate for reducing tariffs and easing regulatory burdens to improve housing affordability.
  • Economist Wayne Winegarden: Winegarden, a senior economist at the Pacific Research Institute, has analyzed the Trump-era tariffs and their spillover into housing costs. He notes that tariffs on construction inputs inevitably raise builder costs, saying “The tariffs will raise the cost of materials, which could directly increase the cost of constructing new homes.”Higher construction expenses, he explains, either get passed to buyers through higher home prices or force builders to cut back on building – both of which worsen the affordability problem. In his view, policies intended to protect industries (like U.S. lumber producers or steel mills) can have unintended consequences for homebuyers and renters nationwide.
  • Housing Market Analysts: Private-sector analysts echo these concerns. John Chang, head of research at a national real estate investment firm (Marcus & Millichap), describes housing affordability being hit by a “one-two punch of rising home prices and rising mortgage rates.” He attributes the supply shortage and resulting affordability crisis in large part to policy failures, noting that many regions have simply “failed to enact policies that are conducive to housing construction,” leaving housing production far below what’s needed. With construction unable to keep pace, any additional cost – be it a tariff, wage increase, or interest hike – further tilts the scales against buyers. Chang and others have argued that broad-based solutions (such as incentives for building, zoning reform, and workforce development) are needed to counteract the combined headwinds of high material costs, scarce labor, and expensive financing.
  • Academics and Policy Researchers: The academic study of immigration enforcement by Troup Howard and colleagues provides a stark illustration of how federal policies can backfire in housing. “When you increase immigration enforcement, you do in fact generate a reduction in the number of individuals supplying labor to construction… We show those reductions are associated with a large decline in homebuilding,” Prof. Howard explained. The result, he notes, is higher housing costs and a worse affordability crunch – the opposite of what one might hope such policies would achieve for U.S. citizens. Other researchers from the American Immigration Council highlight that deporting large numbers of construction workers would have “significant economic ramifications” and likely cripple housing development in certain regions. Their message is that policymakers need to carefully balance immigration policies with labor market realities; otherwise, housing shortages will worsen.

In sum, a wide range of experts – from home builder associations to independent economists and academics – concur that federal actions on trade and immigration have pushed housing costs upward. The general recommendation across these opinions is that policy should aim to reduce unnecessary cost inputs (like tariffs and onerous regulations) and increase the housing supply (by expanding the labor force and encouraging construction) to bring the market back toward affordability.

Buyer and Seller Implications

What do these rising costs and policy impacts mean for individuals on the ground – the homebuyers, sellers, and real estate investors? Here’s how different stakeholders are feeling the effects:

  • Homebuyers: For buyers, especially first-timers, the environment has become extremely challenging. Elevated construction costs mean higher listing prices for new homes, and interest rate hikes have made mortgage payments much steeper than just a few years ago. In fact, housing affordability in 2023 fell to a historic low as monthly mortgage payments jumped over 25% year-on-year for the typical homebuyer. Many would-be buyers find themselves squeezed out of the market or forced to consider smaller homes and less expensive areas. The competition for any reasonably priced home can be fierce, because supply is limited. Buyers also face the indirect effects of tariffs and labor shortages – for instance, fewer newly-built starter homes coming to market, which means they may have to bid on older homes or continue renting. Overall, these conditions delay or derail the homeownership plans of a growing number of Americans.
  • Home Sellers: Sellers have enjoyed dramatic price appreciation in recent years, but the pool of buyers who can afford those prices is shrinking. With mortgage rates around 7%, many buyers have hit their affordability ceiling, resulting in fewer offers for sellers than during the ultra-low-rate frenzy. Home sales volume has declined (pending home sales in 2023 dropped to the lowest levels since the 2008 financial crisis), so sellers need to be realistic about pricing and prepared for longer listing times. In high-cost markets, some sellers are even hesitant to list their homes, knowing that finding an affordable move-up or downsized home will be difficult in this environment (a phenomenon called the “lock-in effect,” where owners stay put to keep their low mortgage rate). Those who do sell are often trading one tight situation for another – for example, selling at a high price but then facing high construction costs if they plan to build or renovate their next home. In summary, while home values remain near record highs, the elevated costs and rates have introduced new friction into the selling process.
  • Investors and Developers: Real estate investors, homebuilders, and developers are directly grappling with the cost increases. Higher materials prices and labor wages mean slimmer profit margins on new development projects. In some cases, projects that looked profitable a few years ago are now borderline or infeasible after accounting for 20–30% higher construction costs. Industry surveys indicate that these financial strains have led to delays and even cancellations of planned housing developments. When builders pull back, that further limits new housing supply, which can keep prices high on existing assets – a benefit to owners of established real estate, but a barrier to those looking to buy. Rental property investors might see an upside in the short term (as more people continue renting due to high homebuying costs), but they also face pricier repairs and upgrades due to expensive materials. Over the long term, investors know that an unhealthy, unaffordable housing market is risky for everyone. Many are advocating alongside consumer groups for policies that lower construction costs – such as rolling back tariffs or increasing the labor pool – so that they can build and acquire properties at sustainable price points.

Policy Outlook and Future Trends

Looking ahead, the trajectory of housing costs will to a large extent depend on how federal policies evolve. There are a few key areas to watch in the coming years:

Trade Policy and Tariffs: Whether tariffs on construction materials are lifted or intensified will have a direct impact on costs. Home builders are hopeful that policymakers will reconsider punitive duties – NAHB is actively lobbying for exemptions on lumber, steel, and other building inputs. If negotiations with trade partners (like Canada over softwood lumber) yield lower tariffs or a new lumber trade agreement, that could gradually reduce lumber prices and shave thousands of dollars off the cost of new homes. On the other hand, a more protectionist stance (such as broad new tariffs on Chinese imports or continued high lumber duties) would keep upward pressure on building costs. Keeping an eye on international trade talks and any moves by the U.S. Commerce Department regarding material tariffs is important for forecasting housing construction expenses.

Immigration and Workforce: Immigration policy is a wildcard that will determine whether the construction labor shortage improves or worsens. Some experts believe that large-scale deportations are unlikely given the economic stakes. Nevertheless, stricter enforcement of existing laws (for example, mandating E-Verify for employers) or reduced issuance of work visas could slowly constrict the construction labor supply further. Conversely, there are proposals to expand legal immigration pathways for workers in industries facing shortages, or to create guest worker programs specifically for construction trades. Any such measures could bring in much-needed younger workers to replace the aging construction workforce. The federal government’s posture on immigration reform, border security, and visa programs will thus be pivotal. The construction industry is also ramping up training and apprenticeship programs domestically to attract more Americans to the trades, but closing a gap of hundreds of thousands of workers will likely require a multifaceted approach. As one industry analysis noted, the reliance on immigrant labor means we need “balanced immigration policies that address workforce needs while maintaining economic stability.”In short, a careful balance is needed to ensure we have enough hands to build the housing America requires.

Monetary Policy and Inflation Outlook: On the monetary front, there is cautious optimism that inflation will continue to cool in 2024, allowing the Federal Reserve to ease up on interest rates. In fact, by late 2024 the Fed had begun modestly cutting rates amid signs that price pressures were abating. Many economic forecasts predict that mortgage rates will drift downward into 2025 – some experts suggest the 30-year fixed could even dip into the 5% range by mid-2025 if the Fed’s rate cuts accelerate. Such a development would provide significant relief for homebuyers in terms of borrowing costs. However, this outlook is heavily dependent on the inflation trend. Should new federal policies (for instance, major spending increases, tax cuts, or yes, new tariffs) add inflationary pressure, the Fed might keep rates higher for longer. So there is a bit of a tug-of-war: housing demand would get a boost from lower rates, but if those lower rates come too soon or accompany expansionary fiscal moves, they could reignite inflation, which in turn could drive construction costs back up. The ideal scenario is a “Goldilocks” outcome – inflation falling to target, interest rates gradually easing to more normal levels (perhaps 5-6% mortgages), and no new shocks to material or labor costs. This would give builders and buyers a stable environment to plan and could unlock more housing activity.

Housing Supply Initiatives: There is growing recognition in Washington that the housing affordability crisis needs proactive solutions. We may see federal incentives for homebuilding, such as expanded tax credits for low-income housing, grants to encourage zoning reform at the local level, or investments in construction innovation. Any policies that effectively increase the supply of homes – whether through subsidizing development or easing regulations – will help counteract the cost increases coming from other areas. Conversely, failing to address the supply issue means that even if demand-side factors (like interest rates) improve, the fundamental shortage of housing could keep prices elevated. The bipartisan Housing Supply and Affordability Act and other proposals indicate that lawmakers are considering ways to stimulate more construction. The outcome of such initiatives will be key for the real estate market in the latter half of the decade.

In summary, the future of housing costs will hinge on policy choices. Easing or removing tariffs would likely have a tangible (if gradual) effect of lowering construction material prices. Finding solutions to the labor shortage – potentially via immigration reforms or workforce training – would enable the industry to build more homes without bidding up wages to unsustainable levels. And maintaining a stable macroeconomic environment with controlled inflation and reasonable interest rates will be essential for housing affordability. Stakeholders in real estate are watching these policy developments closely. The hope is that lessons from the past few years will guide a more balanced approach: one that supports domestic industries and secure borders while also ensuring we can build the housing that American families need at prices they can afford.

Conclusion

Federal policies on trade, immigration, and monetary matters are deeply intertwined with housing market dynamics. Recent tariffs on construction materials have added significant costs to homebuilding, and stricter immigration enforcement has threatened to constrict a labor force already stretched thin. These policies, alongside pandemic-induced supply shocks and the swings in interest rates, have contributed to an environment of rising housing costs and affordability challenges. The evidence is clear – when builders pay more for lumber, steel, or labor, those costs ripple out to homebuyers and renters in the form of higher prices and rents. And when fewer homes are built due to these cost pressures, the imbalance of supply and demand drives prices even higher.

For homebuyers and renters, this means budgets are being strained to the breaking point, and the dream of homeownership is delayed for many. Sellers and real estate investors, while benefiting from higher property values, also face headwinds in a market that is less fluid and more unpredictable than just a few years ago. The real estate industry is adapting to this new normal by urging policy reforms – advocating for lower trade barriers on critical materials, more sensible immigration and workforce strategies, and measures to spur housing development.

The coming years will test how responsive federal policy can be in addressing the housing affordability crisis. Tariffs and immigration rules are areas where targeted changes could relieve some cost pressures. Likewise, steady monetary policy that avoids wild swings will help stabilize buyer confidence and builder financing. The stakeholders in the housing market – from families to builders to lenders – have a lot riding on these decisions. The impact of federal policies on real estate is not an abstract concept; it is measured in real dollars and cents in the cost of a home. By recognizing these connections and crafting policies that support a robust housing supply, the nation can work toward a more affordable and equitable housing market in the future.