Inside Year One: Real Estate Developments Under A New Administration

Trump administration policies have made a discernable impact on the real estate markets. Tariffs, and the threat of additional tariffs, have driven up project costs, with lenders often requiring a tariff reserve. Simultaneously, ongoing concerns about high labor costs stemming from changes in immigration policies are contributing to higher construction costs.

The OBBBA resulted in positive changes for several tax credits, including an expanded Low-Income Housing Tax Credit, the Qualified Opportunities Zones tax credit, and permanency for the New Markets Tax Credit. Concerns about demand for these credits resulted in tax credit pricing trending downward in 2025. The sunsetting of several energy credits has also affected project planning around the use of those incentives. More broadly, the OBBBA made permanent or extended a wide range of existing tax provisions, creating opportunities for investors, developers, and contractors.