P
resident Trump's January 20 memo aimed to address cost-of-living and housing issues, but its impact is uncertain due to potential inflation and labor shortages. The National Association of Home Builders welcomed the administration's pledge to reduce regulations on housing construction, citing costly rules as a contributor to high home prices. Regulatory requirements account for 25% of home construction costs, according to the memo.

    The NAHB applauds the prioritization of housing issues, with chairman Carl Harris stating that removing unnecessary regulations is crucial in tackling the housing affordability crisis. The organization has its own 10-point plan addressing housing affordability, which includes reducing excessive regulations and fixing building material supply chain issues.

    Federal workforce changes could impact the Washington, D.C. housing market, particularly if a smaller federal workforce results from hiring freezes and return-to-office mandates. This could lead to decreased demand for housing in the metro area, potentially causing home prices to drop. However, a back-to-office mandate may also shift housing dynamics by increasing interest in homes near employment centers.

    Tariffs are another concern, as Trump's threat to impose 25% fees on Mexico and Canada starting February 1 could increase the price of building materials and lead to inflation and higher interest rates. Immigration policy changes will also be closely watched, particularly in states with a high share of immigrant workers in the construction labor force, such as California, Texas, Florida, and New York.