Bisnow’s Post

“Builders said they would pass at least some of the increased costs on to home buyers, when prices are already near record highs and mortgage rates are on the rise again.”

🏗️ The construction industry is bracing for big changes under proposed immigration and trade policies. With immigrant workers making up over half the workforce in some states, potential mass deportations could lead to severe labor shortages, reports The Wall Street Journal. Add tariffs on materials like steel and lumber, and construction costs are set to rise—impacting everything from wages to housing affordability. While some hope deregulation will ease the burden, industry leaders in the WSJ article (link below) warn these policies could slow projects and exacerbate the housing crisis. Will the push for economic growth unintentionally hammer one of the sectors driving it? https://lnkd.in/edDRfn3v #Construction #ImmigrationPolicy #Trade #Economy

Take a look at our latest episode of Digging Deep as VP of Business Development, Stephen Callahan provides insights on the year that was and a look ahead to 2025. Topics include market factors such as interest rates, housing legislation, construction pricing and the potential impact of tariffs on the construction market. #LetsBuildTogether #Construction #MarketUpdate

"Mass deportations, or even the threat of them, will likely lead to a shortage of construction workers. In places like Texas and California, between 30 and 40 percent of construction industry laborers are undocumented. And Poyo predicts that with fewer people available to hire, the laborers will mostly be scooped up by the larger companies that can pay more, outbidding cash-strapped affordable housing developers." "In 2023, nearly three-quarters of sawmill and wood products imported into the U.S. came from Canada, with a total value of $5.8 billion. Many industry insiders say increasing tariffs to 25 percent (they’re already more than 14 percent) would increase the cost of building a home—for American consumers. [...] That’s exactly what happened during Trump’s first term, when Trump imposed a 20 percent tax on Canadian softwoods. The result: a $9,000 increase in the cost of new-build homes, according to NAHB research."

In Texas, California, New Jersey, and the District of Columbia, immigrants make up more than half of construction trade workers, according to Riordan Frost, a senior research analyst at the Harvard Joint Center for Housing Studies. “We will absolutely have a labor shortage,” said a longtime Texas developer. https://lnkd.in/eqpGPVE6

Spain has introduced new tax relief measures aimed at incentivizing landlords to rent out their properties for long-term use. This initiative seeks to address the housing challenges caused by the surge in short-term rentals, particularly in tourist-heavy areas where locals often struggle to find affordable housing. Under the new framework, landlords who opt for long-term leases may receive significant tax benefits, such as reduced income tax rates on rental income. The exact percentage of tax relief depends on factors like the duration of the lease and whether the rental price is below market value. This measure is part of broader efforts to stabilize housing markets, discourage short-term rentals, and ensure a steady supply of housing for residents. If you’re a property owner or tenant, understanding these changes could help you make informed decisions. Would you like further details about the tax relief specifics or advice on how to adapt to this policy? https://lnkd.in/dzVSjYZs

“In Texas, California, New Jersey and the District of Columbia, immigrants make up more than half of construction trade workers, according to Riordan Frost, a senior research analyst at the Harvard Joint Center for Housing Studies. Undocumented workers make up an estimated 13% of the construction industry—more than twice that of the overall workforce, according to a recent estimate from Pew Research Center.” ““We will absolutely have a labor shortage,” said George Fuller, a longtime Texas developer who is also mayor of McKinney. “Whether you want to acknowledge it or not, these industries depend on immigrant labor.”

#ShillingfortheDayJob: Great overview of the complexities facing the housing market.  Takeaways: 1. State and federal regulations have added $90k to the cost of a new home. 2. US Labor never recovered from GFC, most went to less grueling work. 3. The employers who have are trying to follow the law are being beaten in price by those who are not. 4. Fixes are hard.  5. Tarrifs, while impactful, on their face only will marginally increase the total cost of the primary materials in building new houses. See the wood framing from Canada data as an example. While not said, trade offs and substitutions will happen to meet budget.  Gordon Lamphere thoughts? https://lnkd.in/gm6gRkaC

Considering New Construction? Be Aware of Possible Tax Increases #lovewhereyouliveandwork #Movetoflorida #southtampa #floridahomes #floridahouses #floridarealtors #floridarealestate #floridarealestateagents #floridahomebuying #floridahousingprices #home #new #construction #newconstruction

NSW Land Tax - zero assessment on your ability to pay. Legislation does not allow for any consideration for hardship for landlords. Never any consideration for high interest rates. We are taxed twice, once on rental income by Federal Govt and second by NSW Revenue on the land value which increases every year. No wonder we have a huge rental crisis with huge cost of living. Just because the Legislation states this is the law does not make it right. Wrong is wrong