The Trump administration is moving at a record pace on a varied list of priorities, but insiders hope a focus on housing will remain at the top of the agenda in 2025.
With housing affordability a central focus, bills addressing zoning, permitting, workforce development, and taxes are taking shape. Additional legislation related to natural gas usage and forest management are also key in helping strengthen the supply chain for home builders. The National Association of Home Builders (NAHB) wants to be in on every decision.
Despite all these areas of concern, one concern looms largest—tariffs.
The tariffs against China, Mexico, and Canada stand to affect the housing industry disproportionately negatively. Approximately 22% of the products used in the average home are imported from China, 70% of lumber used in construction is sourced from Canada, and Mexico is the largest provider of gypsum. Tariffs will have a direct impact on the cost of housing.
The NAHB has advocated for an exemption for building materials, and vice president of state and local government affairs Karl Eckhart notes the association continues to engage in conversations with lawmakers about the harmful effects these tariffs could have on housing affordability.
“Our lobby team has met nonstop with almost any member of Congress that they can find to get our message across,” Eckhart says. “These Canadian and Mexican tariffs are going to have a direct and painful impact on the price to build a house.”
A Hard Lobby
Housing was a key issue during the election, and President Trump signaled that it would be a priority for his administration by issuing an executive order on housing relief in his first days in office. The focus on housing extends beyond the federal level, with legislators at the state and local level exploring ways to ease housing affordability, reduce regulatory burdens, and promote more housing supply.
“As this legislative session kicks off on the state and federal level, I think the message back from Congress is they are not ignoring us and they want to find solutions,” says Karl Eckhart, vice president of state and local government affairs for the NAHB. “They have heard enough from their constituents that spending 40% to 60% of their income on housing is not a good idea. We’ve got their attention, and they want to work with us.”
In 2024 alone, the NAHB’s federal team testified 12 times before Congress and maintained a similar presence at the state level. In its most recent appearance before Congress, the NAHB emphasized the importance of addressing the “5 Ls” placing pressure on home builders: lending, labor, lumber, lots, and laws.
Federal Focus
While Eckhart says there will likely be more housing wins at the state and local levels this year, the NAHB has already celebrated several wins at the federal level.
At the end of February, the House approved a congressional resolution to overturn the Biden administration’s attempt to ban certain natural gas water heaters. The NAHB opposed the ban, citing concerns that it would raise housing costs and present hurdles for remodeling and replacement projects, particularly in older homes. Moreover, any ruling in the water heater market could set a precedent for natural gas appliances, which is an issue playing out on the local level.
“There are still cities that are trying to ban the use of natural gas. We are not opposed to electrification; we are just saying that it should be decided by the marketplace,” says Eckhart. “People who have natural gas shouldn’t be forced to switch over to electrical. If it’s less expensive to build the infrastructure for natural gas, it should be there.”
Another win for the housing industry was the introduction of the bipartisan CONSTRUCTS Act, legislation that will support the construction workforce by expanding opportunities for residential construction training programs at community colleges, technical education schools, and other training programs.
“The hope is that someone young or changing careers can do so much more affordably,” says Eckhart. “Just the fact that the workforce development part is seen and that need is recognized, that is going to go a long way.”
Tax reform is also expected to benefit both consumers and small businesses. Eckhart says the re-upping of the 2017 tax reform is “essential” to keeping the cost of homes down. The preservation of programs such as the low-income housing tax credit, the Department of Housing and Urban Development (HUD) Section 8 housing voucher programs, and HUD’s HOME Investment Partnership and Community Development Block Grant programs remain top priorities for the housing industry.
State and Local
Eckhart says efforts to ease the permitting process are top of mind at state and local levels.
“A majority of states have bills that are going to force cities to shorten their permit review time,” Eckhart says. “A lot of that is in response to the cities not doing it. The states are saying ‘We are going to make you do it.’ That’s causing a lot of tensions between states and mayors, but I think it is a healthy tension.”
One solution that is gaining traction is a permit “shot clock” that starts after a builder or developer presents a plan. The clock—which can be 30, 45, or 60 days—provides a clear deadline for a response, improving certainty and dramatically reducing the wait time for builders and developers.
Zoning has also become an important legislative issue, with many bills passed promoting duplex, quadplex, or sixplex zoning in areas where previously only single-family zoning was allowed. Spokane, Washington; Portland, Oregon; Minneapolis-St. Paul; and Vermont are examples where zoning reform has been successfully introduced.
“The idea is spreading,” Eckhart says. “The thought [of the opposition] was that if you put an apartment in that everyone’s single-family house would drop in value. I don’t think that’s going to be the case.”
