The Affordability Report: Week of Sept 29th

Your Biweekly Cost of Living Briefing

Governors are doing what they can, deploying every tool to cut housing and health costs, streamlined permits, factory-built homes, ACA subsidy extensions. Meanwhile, sweeping new tariffs on drugs, furniture, and trucks take effect this week, threatening to raise prices on essentials and goods for households across the nation.

New Pro–CoLA Developments

• Gov. Hochul fast‑tracks housing with factory‑built “MOVE‑IN NY.”
  What happened: On Sept  22, New York launched a $50 million initiative to scale manufactured/modular starter homes, after a successful pilot. As Hochul put it, “This is the answer to how we can get the supply quickly.”
  Why it matters: Factory‑built homes cut time and cost, offering a practical path to boost supply without layers of “everything‑bagel” conditions that slow projects
  

• Problem Solvers Caucus unveils bipartisan permitting framework (lead: Rep. Scott Peters)
  What happened: On Sept 19, the caucus endorsed a cross‑party plan to streamline permits, set enforceable timelines, and modernize NEPA for energy and infrastructure — aimed squarely at cheaper, more reliable power. Peters: “America faces a choice between cheap, abundant energy … or higher prices.”
  Why it matters: Faster approvals ≈ faster projects ≈ downward pressure on utility costs and better grid reliability.
  

• 18 governors push to preserve ACA premium tax credits.
  What happened: A Sept 15 multi‑state letter urges Congress to extend enhanced ACA subsidies before year‑end rate‑setting, warning of premium spikes and coverage losses if credits lapse.
  Why it matters: Keeping these credits in place is one of the most immediate levers to prevent a household health‑care cost shock in 2026.
  

• Md. Gov. Wes Moore pushes to increase affordable housing development

  What happened: Gov. Wes Moore signed an executive order requiring state agencies to accelerate housing permit reviews—potentially cutting review times by up to 12 months. The order also creates a carrot-and-stick system: local governments that meet housing production targets will get priority access to state funding.

  Why it matters: This tackles affordable housing from both ends of the bottleneck. Permit reforms cut technical delays that add months and costs, while funding incentives push a political reckoning in jurisdictions slow-walking development despite clear need. Though success hinges on whether the funding carrot is strong enough to overcome local NIMBYs.

  New Anti–CoLA Developments

• New import tariffs land Oct 1 on drugs, furniture, trucks
  What happened: The Trump administration unveiled steep new tariffs: 100% on branded pharmaceuticals, 50% on kitchen cabinets/vanities, 30% on upholstered furniture, and 25% on heavy trucks, effective Oct 1.
  Why it matters: These tariffs risk pushing up health care costs, housing material costs, and vehicle prices all at once, placing further strain on already squeezed household budgets. Lower-income households may feel disproportionate pressure since they spend a larger share of income on these essentials.
  

• Trump Administration Nixes Bike and Trail Grants

  What happened: DOT canceled grants for pedestrian and bike projects in cities like Boston, San Diego, and Albuquerque, calling them “hostile to cars.”

  Why it matters: The move signals Trump’s car-first agenda, rolling back Biden-era policies and leaving local governments scrambling for funds. Cuts hit alternatives that not only improve safety but also save households money on gas, car maintenance, and commuting costs.
  

• Input costs stay elevated; firms flag tariffs.
  What happened: U.S. flash PMI for September shows higher input prices, with companies citing tariffs; many weren’t able to pass full costs on to consumers.
  Why it matters: When businesses eat costs, investment and hiring slow; when they pass them on, consumers pay more — either path strains affordability.
  

• Xbox console prices rising again in the U.S.
  What happened: Microsoft announced another U.S. price hike effective Oct 3 (Series X to $649.99, Series S to $399.99), citing the macro environment and tariffs, the second increase this year.
  Why it matters: Even non‑essentials reflect the broader cost squeeze; higher hardware prices ripple into household leisure budgets.
  

  CoLA Win of the Week:

  

  Image Credit: Gov. Whitmer’s Office

  In her “Protect and Defend Michigan’s Economy” address, Gov. Gretchen Whitmer reframes tariffs as a cost-of-living crisis, casting them as a direct driver of household expenses—and calls for immediate state-level certainty to counteract chaotic federal tariff policy.

  
  “We need to do three things: make it easier to build… create and retain good Michigan jobs… incentivize innovation.” — Gov. Gretchen Whitmer

  
  That’s all for this week. See you in two weeks with new updates!