The Future of Homeownership and Housing Policy

The Weekly Recap

Good morning and happy Friday! Mortgage rates moved in the wrong direction, Fannie Mae is looking to accept crypto backed mortgages (what could possibly go wrong?), M&A activity is still moving along, the Federal Reserve only lost a couple of billion dollars in 2025, family offices are taking opportunities in real estate left by a PE void and loneliness costs the US economy $406 billion a year.

If you missed last weeks newsletter on Does Timing the Market Really Matter When Listing Your Home, you can read that through the link.

The Future of Homeownership and Housing Policy

This past week, I had the opportunity to be in Washington, D.C. attending a Homeownership and Housing Policy Conference as a board member of the Manhattan chapter of NAHREP. In a time where headlines are often dominated by division, what stood out most was the rare sense of alignment across both sides of the aisle on the critical issue of housing.

Throughout a series of conversations with senators and members of Congress, Democrats and Republicans, the themes of affordability and limited housing supply consistently took center stage. Regardless of political affiliation, there was a shared acknowledgment that the current state of housing is unsustainable for many Americans, particularly in high-density, high-demand markets.

What became clear is that housing policy may be one of the few areas where common ground still exists in a meaningful way. The challenge now is translating that consensus into actionable solutions that can create real impact.

From our perspective, several key ideas were emphasized as potential pathways to improving affordability, especially in markets like New York:

Cutting Bureaucratic Red Tape:
Streamlining zoning regulations and simplifying the building approval process can significantly accelerate development timelines. When it takes years to get projects approved, costs rise—and those costs are inevitably passed on to buyers and renters.

Reinstating the 421-a Tax Abatement:
The expiration of the 421-a program has left a noticeable void. Reviving a tax incentive for developers—when structured properly—can encourage the creation of new housing inventory, including much-needed rental units.

Maintaining the Estate Tax Threshold:
Keeping the estate tax threshold above $7 million ensures that generational wealth tied to real estate isn’t unnecessarily disrupted, particularly for families whose primary asset is their home.

Avoiding Additional Tax Burdens:
Increasing the mansion tax or raising property taxes across the board could further suppress mobility in the market. At a time when liquidity and transaction volume are already constrained, additional taxes may do more harm than good.

Reevaluating Local Law 11:
While safety is paramount, the current structure of façade inspection requirements under Local Law 11 has had unintended consequences. In some cases, the financial burden has pushed buildings toward distress, even bankruptcy and rendering them non-warrantable by lenders and limiting financing options for buyers.

The overarching message we brought to the table is simple and direct, increasing supply is the most effective long-term solution to affordability. And to do that, we need policy that encourages development, not discourages it.

Walking away from these discussions, I’m cautiously optimistic. When both sides agree on the problem and even parts of the solution it creates a real opportunity for progress. The hope is that this momentum continues, and that we begin to see thoughtful, balanced housing policies that support both growth and accessibility.

As always, real estate is deeply local but policy decisions at the national and state level play an increasingly important role in shaping what’s possible in our markets. This week in Washington was a reminder that while the challenges are significant, so too is the potential for meaningful change.

Market Performance

Here are how some other indexes and asset classes have performed as of this morning’s opening bell.

NYC Market Update

Here is a view of NYC market activity over the past week.

Mortgage Rate Update

Mortgage rates this week averaged 6.38%. The housing market continues to show gradual improvements compared to a year ago amid recent rate volatility. Purchase and refinance applications are up year over year and rates remain lower than they were at this time last year when they averaged 6.65%

News You Can Use

• Investor Drive US Money Market Fund Assets to Record as War-Related Risk Fears Multiply Reuters

• Wall Street Bonus Pool Jumps to a Record $49.2 Billion for 2025 Bloomberg

• Family Offices Make Opportunistic Bets on Real Estate CNBC

• Trump Releases AI Policy for Congress to Pre-empt State Rules Reuters

• Fannie Mae to Accept Crypto Backed Mortgages for the First Time Wall Street Journal

• Home Flippers See Smallest Profits Since the Great Recession CNBC

• Federal Reserve Posted Lowest Loss in Three Years of $18.7 Billion in 2025 Wall Street Journal

• Goldman M&A Head Sees ‘Massive’ Capital Pools Driving M&A Bloomberg

• JPMorgan Offers Clients A New Way to Hedge AI Debt Risk Bloomberg

• BlackRock’s Larry Fink Warns AI May Intensify Wealth Inequality Financial Times

• Why a $150 Million Startup Thinks it Can Fix the $406 Billion Loneliness Problem Fortune

The Deep Insight

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