
As we kick off 2025, we now have unified government under Republican control, but the American electorate remains almost evenly divided. The majority will be slim in both chambers of Congress, which could create greater opportunities for both sides to come to the center and focus on issues that are important to voters in both parties.
When it comes to housing policy there is a unique and exciting opportunity to move a pro-housing agenda forward. The Republican sweep, the divided electorate, and a few other factors create a political environment that could finally lead to the advancement of long-overdue federal policies that will help create the housing America needs.
1. Voters Care About Housing
In the waning days of the election, virtually every national poll listed housing as one of the top three issues on the minds of voters as they went to cast their ballots, regardless of political affiliation. Given that housing has finally risen to the top of the federal agenda, the opportunities for action are greater.
2. Increased Understanding of the Housing Shortage
Not only are voters more concerned about housing affordability than ever before, but there is growing consensus on both sides of the aisle that the lack of housing supply is the driver. Getting bipartisan agreement on the cause of one the most troubling and important problems facing voters is rare and essential to taking action.
3. Thin Margins Motivate Members to Prioritize Bipartisan Outcomes
Dozens of the 435 House races were won by less than 5% of the vote. Pocketbook issues will remain front and center for these members, and the influence of middle-of-the road, persuadable voters will remain high. Passing policies that create a pro-housing environment could be helpful to members of Congress who won by a small percentage of the vote and need to ensure they are showing their value to middle-of-the-road voters whose support they will need to retain their seats.
4. Housing Policy Will Remain Active at State and Local Levels
As has always been the case, housing policy will remain an active issue at the state and local levels of government. Some jurisdictions, especially those under Democratic control, are likely to continue pursuing well-intentioned but flawed housing policies that do nothing to address the underlying need for added housing supply. These localized initiatives will continue to raise visibility of housing at the federal level as some of these policies find their way into national policy debates, thus we need to deliver a “three-dimensional” message about pro-housing policies—at the federal, state, and local levels of government. It will be critical that multifamily housers weigh in, as some of these state and local efforts—such as rent regulation, increased transfer taxes, and similar efforts—hurt housing and renters.
5. Tax Policies That Incentivize Investment in Housing Are on the Agenda in 2025
The current tax structure expires at the end of 2025. Various provisions of the tax code incentivize private capital to invest in the housing America needs, including affordable housing through the low-income housing tax credit.
6. Tech Policy Will Continue to Impact Rental Housing
Policies that govern the use of technology, artificial intelligence, and broadband continue to be priorities for voters and policymakers. Tech has great promise to be a force for good for renters and housing providers alike, so we expect increased policy debate around these issues. The more we are able to elevate the successful use cases for technology in rental housing, the better our chances are of creating a regulatory environment where innovation can flourish.
Based on the convergence of all of these factors, the coming two years will undoubtedly be active for housing policy. Now is a great time for those in the multifamily space to be active in advocacy efforts that will better ensure we can take full advantage of what we hope will be a once in a generation “magic moment” for housing.