Inside Year One: Real Estate Developments Under a New Administration

This article is part of Inside Year One: Key Developments Under a New Administration. Click here to read the full newsletter.

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.

Projects that rely on federal approvals have had varied experiences, with some approval timelines impacted by decreased staffing, but most seeing limited impact as agencies shifted compliance responsibilities to funding recipients and conducted more limited reviews. In addition, federal agencies have been encouraged to prioritize production, with staffing shifted to support programs and departments that bolster real estate development. The Administration’s policy priorities have also impacted agency enforcement practices, with an increased emphasis on immigration compliance and decreased emphasis on fair housing review and enforcement.

A significant concern for federal funding recipients and contractors using federal funds are the potential impacts of certifications requiring compliance with Executive Orders (EOs), laws, and regulations. Given that there are conflicts between EOs, federal regulations and statutes, judicial interpretations, and state laws, there is understandable confusion and concern across the industry.

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This alert is a periodic publication of Ballard Spahr LLP and is intended to notify recipients of new developments in the law. It should not be construed as legal advice or legal opinion on any specific facts or circumstances. The contents are intended for general informational purposes only, and you are urged to consult your own attorney concerning your situation and specific legal questions you have.