That Happened — So, What’s Next for Housing?  

By: Sharon Wilson Géno, NMHC President

View and share the web version of this blog here: https://www.nmhc.org/news/one-nation-underhoused/2024/that-happened-so-whats-next-for-housing/

The long anticipated federal election cycle is now officially completed, with the final Congressional race called last week. While we will have unified government under Republican control, 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 which are important to voters in both parties.

Regardless of one’s feelings on the results of the election, there is now a unique and exciting opportunity to move a pro-housing agenda forward during this transition. 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 the polls, 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 five percent 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 (LIHTC). Despite unsuccessful efforts to pass bipartisan legislation to expand LIHTC in the last Congress, we expect this will be back on the table next year providing another opportunity to expand this tool and other tax provisions that could make investment in multifamily housing more attractive.
6. Tech Policy Will Continue to Impact Rental Housing: Policies that govern the use of technology, AI 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 next two years will undoubtedly be active for housing policy. Now is a great time for those in the multifamily housing space, regardless of their politics, 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. 

NMHC and our partners at NAA are working closely on a legislative agenda to move pro-housing policy forward as the new Administration and Congress take their seats in January. It is time to put politics aside and take real steps to solve the housing crisis.   

Based in Washington, D.C., the National Multifamily Housing Council (NMHC) is where rental housers and suppliers come together to help meet America’s housing needs by creating inclusive and resilient communities where people build their lives. We bring together the owners, managers, developers and suppliers who provide rental homes for 40 million Americans from every walk of life—including seniors, teachers, firefighters, healthcare workers, families with children and many others. NMHC provides a forum for leadership and advocacy that promotes thriving rental housing communities for all. For more information, contact NMHC at 202/974-2300, email the Council at info@nmhc.org, or visit NMHC's website at nmhc.org.