In Trump's second term, housing policy saw big changes: a Federal Lands Task Force, DOGE cuts impacting housing, tariffs raising costs, tax reforms to boost inventory, and AHPs for cheaper health plans. NVAR is closely tracking the impact.
by Danielle Finley, Associate Director of Political Engagement
The first 100 days of President Trump’s second administration have brought swift changes to federal housing policy and signaled new directions for housing. From workforce reductions in key agencies to renewed interest in association health plans, here’s what Realtors® in Northern Virginia need to know.
Federal Lands: A New Frontier for Housing
One of the most notable developments is the launch of a new Federal Lands Task Force for Affordable Housing, supported by the National Association of REALTORS® (NAR). This initiative, coordinated between the Department of Housing & Urban Development (HUD) and the Department of the Interior, aims to identify underutilized federal land that could be used for residential development. The goal is that streamlined land transfers will encourage affordable housing opportunities — like local land banking or workforce housing initiatives, but on a national scale. Leading this charge is HUD Secretary Scott Turner, alongside Secretary of the Interior Doug Burgum.
DOGE and the Federal Workforce: Local Impacts
The administration has prioritized reducing the size and scope of federal agencies under a new initiative called the Department of Government Efficiency (DOGE). This has translated into staff and program reductions across most federal agencies — including HUD — and efforts to decentralize program management. While cuts could impact housing programs and permitting timelines, this could have a significant impact on the Northern Virginia job market, as the region's economy is closely tied to the stability of the federal workforce. NVAR continues to monitor this closely, especially as return-to-office mandates and federal job cuts ripple across our region’s economy. We are working with Bright MLS to track weekly housing trends to see if these impacts are being felt in the real estate industry. We are also engaging with partners across the business sector to understand the impacts of these decisions on our community.
Tariffs and Construction Costs
A new round of tariffs on raw materials has also raised concerns across industries but notably in the home building sector. Early estimates suggest that these tariffs could increase the cost of constructing a new home by more than 2-7%, with implications for both new builds and renovation projects. With inventory already being tight in Northern Virginia, this could put additional pressure on affordability and home prices.
Tax Policy and Realtor® Priorities
Tax legislation is also on the being looked at closely. While the Tax Cuts and Jobs Act passed the Senate for extension in early April, Realtor® priorities include:
- Raising or eliminating the cap on State and Local Tax (SALT) deductions to provide relief for homeowners in high cost of living states like Virginia.
- Supporting the “More Homes on the Market Act,” which reduces capital gains penalties for longtime homeowners who sell, helping free up inventory.
- Backing the “Neighborhood Homes Investment Act,” aimed at incentivizing new private investment in owner-occupied housing through tax credits.
- Advocating for the “Revitalizing Downtowns and Main Streets Act,” which supports conversion of underused commercial spaces into residential or mixed-use properties.
Promoting the “YIMBY Act,” which encourages local governments to reduce zoning and permitting barriers to housing development.
Each of these measures has the potential to directly impact the housing market by expanding supply, encouraging development, and improving access to homeownership.
A Win for Independent Contractors? Association Health Plans Return
On the healthcare front, there’s renewed momentum behind Association Health Plans (AHPs). Congressman Tim Walberg (R-MI) has introduced the “Association Health Plans Act,” which would allow organizations like Realtor® associations to offer more affordable group coverage to their members. NAR testified in support of the bill on April 2.
Virginia REALTORS® successfully passed legislation at the state level several years ago to allow AHPs, but federal rules have limited their reach. If this federal legislation passes, it could mean more affordable health care options for independent contractors — including in the Realtor® community.
Conclusion
The first 100 days of President Trump’s second administration has been a period of significant shifts in federal housing policy and related industries, setting the stage for changes in the sector. With workforce reductions in key agencies and a renewed focus on association health plans, these early changes are reshaping the landscape of housing. NVAR is dedicated to helping you stay informed about these adjustments; this is crucial to navigating the evolving market and adapting to the new directions in housing policy.