How Politics And Policy Are Fueling The Housing Crisis In 2025
Twenty-year Washington, D.C., veteran Colin Allen is the executive director of the American Property Owners Alliance (APOA). If you want a rare, dispassionate, unfiltered analysis of the current political landscape and its direct influence on the real estate market, tune into this episode.
Highlights
Drawing from his experience in the Newt Gingrich era and the Bush administration, Allen explains the “holistic nature of policy making” and how a sober view is necessary to predict outcomes rather than getting lost in the emotion of the issues.
Allen points out that the current political volatility is driven by two main factors: economic dislocations caused by technology displacing labor and a proliferation of fragmented information channels that make it harder for people to have a shared point of view. This has shifted power away from centralized institutions, such as Congress, and into the hands of outside groups and social media.
When it comes to federal efforts to address the housing supply crisis, Allen contrasts the approaches of the Biden and Trump administrations. Allen notes that while Democrats focused on price controls and getting investors out of the market, both sides are now exploring solutions such as tax credits for developers, streamlining zoning laws and utilizing federal land for housing.
Policymakers on both sides of the aisle recognize the problem. Allen highlights a significant bipartisan effort in the Senate Banking Committee, which passed a bill with unanimous support to address the supply issue. However, he cautions that these federal actions are limited. The most impactful solutions lie at the state and local levels.
Allen also addresses other pressing issues, including the rising cost of homeowner’s insurance and a potential bipartisan solution to reform manufactured housing financing that could unlock a new wave of affordable homeownership.
In the financial sector, he explains a policy change that allows for the use of “alternative data” in credit reports, a move that could help more people become first-time homebuyers.
His advice to real estate professionals: Stay “informed and active.” Being engaged in advocacy is an important business practice that can influence policy and prevent a regulatory “heavy hand” from impacting the industry.
If you want to understand the forces shaping the market beyond headlines and interest rates, watch the full episode above.
Connect with Colin Allen on LinkedIn, X, or send him a message callen@propertyownersalliance.org. Learn more about APOA on LinkedIn, Facebook, X or online propertyownersalliance.org.
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James Dwiggins is the Co-CEO of NextHome, Inc. and co-host of Real Estate Insiders Unfiltered.
Keith Robinson is the Co-CEO of NextHome, Inc. and co-host of Real Estate Insiders Unfiltered.
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