AGP Executive Report

Housing Affordability: High costs helped define the midterm vote, as Democrats won control of Congress. The U.S. market is also showing strain: buyer demand hit a record low, home prices fell for the first time in three years, and mortgage costs remain high. Yet sellers are mostly staying on the market rather than pulling listings. Institutional Investors: Treasury proposed rules clarifying exceptions to a coming ban on large investors buying single-family homes, including build-to-rent projects. Comments are due Nov. 23, ahead of the ban’s Jan. 7, 2027, start date. Construction: U.S. construction spending fell 1.9% in September, with homebuilding weighed down by mortgage rates. Data center investment continued to support nonresidential construction.

Construction Trends: U.S. construction spending fell 1.9% in September as mortgage rates weighed on homebuilding, while nonresidential investment continued to rise, fueled in part by data centers. Housing Supply: Estimates of the national home shortage range from 2 million to 4.7 million, but lot-development prospects vary sharply by submarket—even within major Texas metros. Affordability and Policy: Housing costs are a major concern for voters, and ballot measures include proposals to ease some building rules and fund affordable housing. Climate Risk: Without stronger prevention and changes to where and how homes are built, fire losses could threaten nearly 449,100 U.S. structures by 2060, researchers warn.

Data Center Buildout: A Google campus under construction near Muskogee has neighbors complaining about noise and traffic, highlighting local resistance to a boom that is also supporting nonresidential construction. Housing Affordability: U.S. home prices are falling in some markets, but mortgage payments remain high. Housing and food together now take nearly half of household budgets, and affordability is a key issue in local races. Construction and Financing: Overall construction spending fell 1.9% in September, even as data-center investment helped lift nonresidential projects for a sixth straight month. Reported adjustable-rate mortgage averages ranged from about 6.4% to 7%, offering buyers little relief.

Housing Costs: Housing and food consumed 46.9% of average household spending in 2025, with shelter costs up 8% and rents up 10.8%. Another analysis finds a median-priced home is out of reach for typical households in every state. Affordable Supply: Low-income renters still face few available apartments, while Chicago’s final plan for 4,100 homes at Cabrini-Green puts a major redevelopment in focus. Local Housing Debates: Yountville’s Commons project shows how poor communication can deepen disputes over needed housing; election ballot measures could also reshape renters’ rules. Investment: Colorado’s 91 approved Opportunity Zones could attract capital for housing and infrastructure starting in 2027.

Home Affordability: A new analysis finds typical households can’t afford a median-priced home in any U.S. state, while housing costs rank among voters’ top concerns in several battleground races. Commercial Expansion: SEG Solar acquired two more buildings totaling 1.15 million square feet at Tomball’s Northwest 99 Business Park. Planned manufacturing and warehouse space will bring its footprint there to about 1.58 million square feet. Rebuilding: Nearly two years after the Los Angeles fires, just 254 homes are complete in Altadena and 62 in Pacific Palisades. Permits are moving faster, but insurance, financing and utility connections are holding up recovery. Land Use: Data-center moratorium supporters could prevail in as many as 15 states, reflecting growing local resistance to rapid AI infrastructure development.

Workforce Housing: Manatee County has added nearly 60,000 residents since 2020, intensifying pressure on housing. A new 182-unit Bradenton complex offers one renter an affordable place near her job, but it is only half occupied. Homeownership Costs: A Realtor.com analysis finds median-income households can’t comfortably afford a median-priced home in any state, with higher mortgage rates widening the gap. Redevelopment: Bloomington residents are protesting the planned demolition of Seminary Pointe, where one-bedroom rents ran $400 to $700, as the county eyes the site for convention-center expansion. Market Pressures: Housing affordability is also a top concern for voters in several battleground states, while monthly home costs continue to rise in some cities despite a cooling market.

Project Fight: Washington, D.C., and Virginia sued to block President Trump’s proposed 250-foot arch near Arlington National Cemetery, arguing the project lacks required approvals and would cause lasting harm. The administration says construction could start as soon as Nov. 5. Housing Costs: Affordability remains a pressure point: September U.S. new-home sales fell, El Paso prices kept rising, and high housing costs cut into Texans’ income gains. Homeowners are also facing more insurance non-renewals as roof claims climb. Affordable Housing: Illinois announced $156 million for housing initiatives, while a new affordable complex opened in Brooklyn Park, Minnesota. Landlord Rules: A Washington appeals court cleared the way for owners of Seattle’s 254-unit Addison on Fourth to pursue claims that city renter protections made their affordable-housing investment financially unsustainable. The case could shape similar disputes elsewhere.

Capital Construction: Virginia and Washington, D.C., sued Saturday to stop President Trump’s proposed 250-foot arch, alleging it lacks required approvals and would snarl traffic. Construction could begin as soon as Nov. 5, while a federal judge weighs a separate bid to halt the project. Homeowner Insurance: Midwest homeowners face rising premiums and policy non-renewals as insurers tighten rules for older roofs. A report cited U.S. residential roof claims of about $31 billion in 2024, largely tied to wind and hail damage. Housing Market: Home prices rose year over year in 78% of U.S. metro areas in the third quarter, with the national median for existing single-family homes up 1.7% to $432,900. The average 30-year mortgage rate eased to 7.24%, but remained above its 6.17% level a year earlier. Affordability: In El Paso, the median home price reached $280,000 in the third quarter, nearly double its 2016 level, making it harder for first-time buyers to compete as inventory stays tight.

Local Market Signals: Broward County’s mid-market condo sales rose 8% in September, even as total home closings fell nearly 10%; condo prices dropped while single-family prices edged up. Housing Investment: Illinois announced $156 million for housing programs, including affordable-home financing. The state estimates it needs more than 225,000 new units over five years to meet demand. Construction Pipeline: Rock County permits were up 3.6% through September, with Janesville accounting for much of the increase. Affordability: Nationally, housing costs remain a major strain, with reports pointing to homeownership staying out of reach for many buyers through 2027.

Veteran Homeownership: More than 26,000 veterans are paying higher mortgage bills after the VA’s hardship-refinancing program ended; some monthly payments rose by $1,000 or more, NPR reports. Affordable Housing: Cherokee Nation opened its first North Tulsa housing project, seven apartments, and pledged further investment. In Brooklyn Park, Minnesota, a new 44-unit complex offers income-based rents from $554 to $1,830; USDA grants will also help repair about 162 rural Texas homes. Market Pressures: The average 30-year mortgage rate dipped to 7.24%, while September building permits fell 11% from August and 6% year over year, pointing to continued affordability and supply challenges. Development Disputes: Avaio Digital sued Pulaski County, Arkansas, over a 12-month data-center moratorium, as local opposition increasingly delays or blocks projects nationwide.

Housing Affordability: A new state-by-state study finds Nevada residents face the greatest financial pressure, with 37.7% of households spending at least 30% of income on housing; Florida and California also rank among the five most strained states. Veterans’ Home Loans: More than 15,000 veterans saw monthly payments rise by at least $150 after the VA ended a loan-modification program, an NPR investigation found. Affordable Development: Construction is underway on 119 affordable homes at Oakland’s Liberation Park, while Howard University and its partners have broken ground on a 525,000-square-foot mixed-use project in Washington, D.C. Housing Mobility: A Chicago program that helps low-income renters move to neighborhoods with better opportunities highlights how housing support can extend beyond rent assistance. Emergency Housing: Airbnb says a new revenue-sharing initiative will contribute $500 million to its nonprofit housing program over five years, funding free stays for people facing crises.

Housing Supply: HUD’s proposed manufactured-housing changes could expand lower-cost options by removing the permanent-chassis requirement, though rulemaking and building-code updates remain ahead. Community Investment: New Jersey submitted the maximum 130 census tracts for federal Opportunity Zone status, aiming to draw investment into housing and local economies. Flood Protection: Naples’ $86.2 million stormwater project is running ahead of schedule, adding pumps and drainage designed to reduce flooding in coastal neighborhoods. Property Taxes: Florida’s Amendment 3 would raise the homestead exemption in stages; local officials warn the revenue loss could threaten public services, while supporters say it could begin broader tax cuts. Market Pressure: U.S. new-home sales fell in September as affordability pressures weighed on buyers, adding to concern that the housing slowdown could intensify renter and voter frustration. Disaster Recovery: SBA low-interest loans are available to Eastern Washington wildfire survivors, including homeowners seeking up to $500,000 to repair or replace a primary residence.

Housing Affordability: More than half of Texas renters spend at least 30% of their income on housing, while household incomes in Dallas–Fort Worth and McAllen fell last year, Census data shows. Selling Costs: U.S. homeowners spent an average of $81,918 to sell a home this year, up 22% from 2025; repairs were the biggest expense. Mortgage Market: The average 30-year fixed rate was 7.21% on Oct. 29, slightly below the prior week, as September new-home sales fell amid affordability pressures. Housing Policy: A new Trump administration order aims to lower housing costs, drawing mixed reactions from industry groups. Florida Property Taxes: Voters will decide whether to expand the homestead exemption for non-school property taxes, a change that could affect costs for qualifying homeowners and prospective Florida Keys buyers.

Commercial Property: U.S. commercial real estate investors are more upbeat than ever, according to PwC, even as housing affordability remains a drag on home sales. Housing Market: New-home sales fell in September, and builders are cutting prices at a record pace. Meritage Homes reported third-quarter orders down 15% year over year and closings down 14%, with lower margins and earnings. Multifamily: Essex Property Trust raised its 2026 outlook after strong Northern California performance, led by property revenue growth and firm apartment renewals. Transit-Oriented Development: Maryland broke ground on a $56 million garage at Odenton’s MARC station, the first phase of a plan for 585 homes, including 130 affordable units, alongside retail and public spaces.

Multifamily Development: An $80 million, 275-unit apartment community is taking shape in Monroe, North Carolina. The four-story project is planned with rents starting around $1,700 a month. Investor Sentiment: U.S. commercial property investors are more upbeat than at any point in PwC and the Urban Land Institute’s 48-year survey, though fewer respondents rate business conditions positively and expectations for profitability have fallen. Housing Costs: Single-family prices rose 0.3% in August and were up 2.4% year over year, while 30-year mortgage rates averaged 7.32%. Other reports point to a sluggish market, with builders cutting prices and sellers outnumbering buyers in some areas. Rental Supply: HUD has opened FHA-insured financing to build-to-rent communities, expanding a potential funding route for new rental housing. Affordability Policy: A new federal order aims to reduce housing costs, but industry reaction is mixed.

Housing Policy: A new Trump executive order aims to lower housing costs, but industry reaction is mixed. Home Prices and Sales: U.S. new-home sales fell 5.3% in September as mortgage costs rose, even as the 20-city Case-Shiller index climbed 2.7%, topping forecasts and its previous reading. Affordable Housing: A USDA-backed home for a low-income Arizona family is nearing completion, while Rice County approved $50,000 for a shelter supporting women and children facing homelessness.