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Congress And HUD Align On Supply-First Push To Fix Housing Shortage

Congress And HUD Align On Supply-First Push To Fix Housing Shortage

Washington rarely agrees on housing, but Congress and HUD are now aligned on cutting red tape to boost supply.

Nina Dale
February 11, 2026

Together with

Good morning. Washington is showing rare alignment on housing. A bipartisan push in Congress and a parallel effort at HUD aim to cut red tape, accelerate development, and begin closing the nation’s persistent housing supply gap.

Today’s issue is sponsored by Covercy—eliminating manual exports by keeping property and investor data perfectly in sync.

🎙️Worth a listen: This week on No Cap, Trimont CEO Bill Sexton explains the inner workings of CRE loan servicing and why the credit cycle is already shifting.

CRE Trivia 🧠

Which U.S. metro led the nation in affordable housing construction over the past five years?

(Answer at the bottom of the newsletter)

Market Snapshot

S&P 500

GSPC

6,941.81

Pct Chg:
-0.33%

FTSE NAREIT

FNER

805.03

Pct Chg:
+1.45%

10Y Treasury

TNX

4.141%

Pct Chg:
-0.057

SOFR

30-DAY AVERAGE

3.66%

Pct Chg:
-0.00

*Data as of 2/10/2026 market close.

Bipartisan Push

Congress And HUD Align On Supply-First Push To Fix Housing Shortage

Rare bipartisan momentum in Washington is converging on one goal: remove barriers, speed construction, and get more housing built.

Why now: With a housing deficit of up to 5.5M units, policymakers are increasingly aligned that regulatory friction—not demand—is the main constraint on new supply, prompting coordinated action from Congress and HUD.

Congress moves the needle: The House passed the Housing for the 21st Century Act 390–9, closely aligning with the Senate’s ROAD to Housing Act. The bills are expected to be merged and sent to President Trump, marking one of the most significant bipartisan housing efforts in decades.

What the legislation does: The House bill seeks to accelerate housing by easing environmental reviews for smaller projects, directing HUD to issue zoning playbooks and design templates, updating manufactured housing rules, and expanding community and rural bank lending. The Senate bill goes further by tying Community Development Block Grant funding to local housing production.

Industry response: Trade groups praised the House vote as progress on supply. The Trump administration welcomed the approach but criticized the lack of limits on institutional single-family buyers, while Democrats warned regulatory reform alone won’t fix affordability without new funding.

HUD execution plan: HUD Commissioner Frank Cassidy said 2026 will focus on execution—rolling back project-stalling regulations, modernizing FHA and lender programs, and clearing loan-closing bottlenecks. Some changes will take time, but near-term improvements are underway.

➥ THE TAKEAWAY

Faster path: For the first time in years, Congress and HUD are aligned on housing supply. If legislation and regulatory streamlining move together, developers could see faster approvals—though advocates say it’s only a first step.

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✍️ Editor’s Picks

Smart tools: Elevate your brokerage from tactical execution to strategic partnership. In just under 30 minutes learn how integrated AI augments your expertise, reclaiming your time for the relationships and big-picture initiatives that move the needle. Watch now. (sponsored)
Policy roadblock: A proposed congressional ban on large housing investors has stalled, highlighting deep political divisions and limited momentum for federal intervention in the SFR market.
Lending thaw: Per CBRE, CRE lending activity continues to rebound, driven by stabilizing interest rates, improved pricing clarity, and selective lender risk appetite.
Public advantage: New benchmarking data shows REITs outperforming private real estate across multiple metrics, underscoring the benefits of scale, liquidity, and balance-sheet discipline.
Data exposure: Banks are increasingly factoring AI exposure into lending decisions, as uncertainty around data centers, power demand, and tech concentration reshapes credit risk.

🏘️ MULTIFAMILY

Rent math: In most major U.S. metros, renting remains cheaper than owning, as high mortgage rates and home prices continue to tilt the cost equation.
Rent disconnect: Despite CPI data showing rising rents, many multifamily owners report flat or declining effective rents, pointing to a growing data credibility gap.
Capital conviction: A Nashville-based private equity firm raised an $11B multifamily fund, signaling renewed institutional conviction in rental housing fundamentals.
Fund flood: Covenant Capital raised $11B focused on housing strategies, reflecting strong investor demand for residential assets amid market stabilization.

🏭 Industrial

Digital resistance: Monterey Park enacted a ban on new data centers, underscoring rising municipal resistance tied to power usage, land constraints, and community impact.
Industrial scale: ICE acquired a massive Phoenix-area industrial facility, reinforcing its aggressive expansion strategy tied to logistics and infrastructure growth.
Buying spree: ICE’s real estate buying spree across Texas and Georgia reflects its growing footprint in industrial and specialized property assets.

🏬 RETAIL

Flagship buy: Hermès was revealed as the buyer behind a $400M Beverly Hills property deal, highlighting continued global demand for trophy retail real estate.
Now opening: Major retailers are accelerating store openings and closures in 2026 as value, grocery, and experiential formats gain ground over legacy chains.
Brand collapse: Eddie Bauer and Francesca’s are racing to find buyers while liquidating hundreds of stores, signaling ongoing stress in mid-market retail.

🏢 OFFICE

Setting records: Manhattan’s Helmsley Building set a new asking rent record after a major lease expansion, signaling renewed strength at the top of the office market.
Office return: U.S. office tenant demand has turned positive for the first time since the pandemic, driven by high-quality space and return-to-office momentum.
Risk offering: Office-focused Joss Realty launched an IPO, testing investor appetite for public office exposure amid improving demand signals.

🏨 HOSPITALITY

Measured outlook: Hotel companies are entering 2026 with a measured outlook, balancing steady travel demand against cost pressures and economic uncertainty.
Lifestyle play: Rosewood announced new luxury branded residences in Hillsboro Beach, highlighting continued demand for high-end residential hospitality offerings.

A MESSAGE FROM HENRY

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📈 CHART OF THE DAY

Office conversions have cut inventory by just 0.7%, far too little to offset weak demand or the 332 MSF of new supply added since 2020.

CRE Trivia (Answer)🧠

Seattle, with over 14,000 affordable apartments built — the most of any metro and 24% of its total new supply.

Congress And HUD Align On Supply-First Push To Fix Housing Shortage

Washington rarely agrees on housing, but Congress and HUD are now aligned on cutting red tape to boost supply.