The past two weeks delivered the best housing legislation in decades and some of the worst economic data in years, at the same time. The Senate passed a landmark housing supply bill 89–10, Delaware launched a permitting fast lane, and rent growth hit its lowest monthly gain since 2021. But the economy also shed 92,000 jobs, Q4 GDP was revised down to 0.7%, oil blew past $100 a barrel, and gas prices posted their biggest monthly spike since Katrina.
New Pro–CoL Developments:
Senate Passes Landmark 21st Century ROAD to Housing Act (89–10)
What Happened: On March 12, the Senate passed the largest housing bill in decades by a vote of 89–10. The bill combines elements of the House-passed Housing for the 21st Century Act (H.R. 6644) and the Senate’s ROAD to Housing Act. It streamlines NEPA environmental reviews for housing, lifts the Rental Assistance Demonstration (RAD) program cap, modernizes FHA multifamily loan limits, includes single-stair reform guidelines, ends the permanent-chassis requirement for manufactured homes, and creates competitive planning grants for affordable housing.
Why It Matters: This is the most significant federal housing supply legislation in decades. NEPA streamlining and the manufactured housing chassis fix alone could cut thousands of dollars in per-unit costs. The bill signals genuine bipartisan consensus on a supply-side approach to housing affordability. It now heads back to the House for reconciliation on Senate amendments.
However, this bill package includes a ban on investors supporting build-to-rent builds, and it would effectively reduce supply. While we appreciate the many great supply provisions in this bill, I hope to see this bill removed as we work towards getting the rest of this bill package to law.
Manufactured Housing Breakthrough: Chassis Requirement Eliminated
What Happened: Within the 21st Century ROAD to Housing Act, a provision ends the federal requirement that manufactured homes be built on a permanent chassis. At least nine states have also relaxed zoning restrictions on manufactured housing.
Why It Matters: Manufactured housing is roughly half the cost per square foot of site-built construction. Eliminating the chassis requirement saves an estimated $5,000–$10,000 per home and allows more flexible designs (second stories, basements). This is a concrete, supply-expanding reform that benefits lower-income buyers.
Yale Budget Lab Confirms Effective Tariff Rate Dropped Post-SCOTUS
What Happened: The Yale Budget Lab’s March 9 tariff tracker update confirmed the effective tariff rate fell from 14.3% (highest since 1939) to 7.3% immediately after the SCOTUS IEEPA ruling, then rose to 10.5% after the Section 122 tariff was imposed. If Section 122 expires as scheduled in ~150 days, the rate falls back to 7.3%. The per-household cost under the current regime is estimated at $450–$570 (if Section 122 expires) or $770–$940 (if extended).
Why It Matters: The SCOTUS ruling delivered real tariff relief, cutting the effective rate nearly in half. But the administration’s quick reimposition via Section 122 clawed much of that back. The key date to watch: late July, when Section 122 is scheduled to expire.
Delaware Governor Signs Permitting Accelerator Executive Order
What Happened: Gov. Matt Meyer signed EO 18 creating Delaware’s first statewide “Permitting Accelerator.” A new “Housing Fast Lane” caps state-level review at 120 business days — down from the current 18–24 months. Agencies must review in parallel, not sequentially, and notify the Governor in writing if they can’t hit the deadline. The order kills Level of Service traffic standards for priority housing, meaning projects can no longer be blocked because they “might add cars to an intersection.” The new standard: can people walk, bike, or take transit there? Clean energy projects, solar, storage, grid upgrades, nuclear, get the same 120-day fast lane. A public dashboard tracks every project’s status and bottlenecks.
Why It Matters: Permitting delays are a hidden cost-of-living tax, every month in limbo adds cost passed to renters and buyers. Killing LOS traffic standards is huge; they’ve been one of the most effective NIMBY tools nationwide for blocking apartments near jobs and transit. Applying the same framework to energy is smart — housing and energy affordability under one permitting regime.
New Anti–CoL Developments:
Economy Sheds 92,000 Jobs in February; December Revised to -17,000
What Happened: Nonfarm payrolls fell 92,000 in February—far below the +50,000 consensus. December was revised to a loss of 17,000. This was the third payroll decline in five months. Unemployment ticked up to 4.4%. Labor force participation fell to 62%, its lowest since December 2021. Healthcare lost 28,000 jobs (Kaiser Permanente strike). Leisure and hospitality lost 27,000. Since May 2025, the labor market has shed a net 19,000 jobs. The economy has averaged fewer than 5,000 new jobs per month since Trump took office.
Why It Matters: The one sector propping up the labor market—healthcare—went negative. Even adjusting for the Kaiser strike, February payrolls would have been deeply negative. This is a low-hire, low-fire labor market, meaning workers who lose jobs face longer searches. Wage growth (3.8%) still exceeds inflation (2.4%), but that gap is narrowing—especially at the bottom.
Fourth-quarter GDP revised down to just 0.7% growth; January core inflation was 3.1%
What Happened: The Commerce Department sharply revised Q4 2025 GDP growth down to just 0.7% — half the prior estimate of 1.4% and a massive slowdown from Q3’s 4.4%. Consumer spending was revised down to 2%, dragged by weaker healthcare spending.
Why It Matters: Slower growth + rising inflation = the stagflation setup. The economy entered the Iran energy shock and the post-SCOTUS tariff scramble in weaker shape than anyone thought. Core PCE at 3.1% makes it nearly impossible for the Fed to cut rates — and some analysts are now floating the possibility of hikes later this year. For families, this is the worst combination: prices still climbing while the engine that produces jobs and income is decelerating.
Oil Passes $100/Barrel; Gas Hits $3.72 National Average
What Happened: U.S. crude oil hit $102/barrel up roughly 75% year-to-date and nearly 50% since Feb. 28. The national average gas price reached $3.72/gallon as of March 16—up 74 cents in one month, the largest monthly gain since Hurricane Katrina. Diesel hit $4.83/gallon (up 28%). California reached $5.34/gallon.
Why It Matters: This is the biggest oil supply disruption in modern history. EY-Parthenon estimates the gas price bump could push March monthly inflation to 1%, which would put the annual rate near 3%. Every dollar increase in oil cascades: gas, diesel (trucking costs), jet fuel (shipping/flights), fertilizer (food prices), and electricity. U.S. households spend an average $2,500/year on gas; at current prices, many families are paying $10+ more per week. Lower-income consumers are hit hardest.
RAND Report: State Medicaid Budgets to Decline $665 Billion Over Decade
What Happened: A RAND Health analysis published via Stateline estimated that state Medicaid programs will lose a total of $665 billion over the next decade as a result of the One Big Beautiful Bill Act’s cuts to federal Medicaid investment. States are already prohibited from establishing new provider taxes—a key financing tool—under the new law.
Why It Matters: The $911 billion in federal Medicaid cuts (CBO estimate) translates to $665 billion in state-level budget impact. States will have to choose between raising other revenues, cutting provider reimbursement rates, or reducing eligibility—each of which raises healthcare costs or reduces access for low-income families.
KFF Poll: 66% of Americans Worry About Affording Healthcare
What Happened: KFF’s Health Tracking Poll found two-thirds of the public worry about paying for healthcare—ranking it above food, rent, and utilities as a financial concern. Democrats hold a 13-point advantage over Republicans on who voters trust to address healthcare costs. Notably, on prescription drug pricing, voter trust is more evenly split.
Why It Matters: Healthcare costs are the top financial worry for American families—above all other cost-of-living categories. This is a massive political opening for candidates who can credibly talk about reducing healthcare costs through supply-side reform (more providers, more competition, fewer middlemen).
Weekly Highlight!
We recently released the Cost of Living Policy Blueprint, a supply-side affordability agenda covering housing, healthcare, energy, and raising children, built around a core finding: 65% of cost-of-living voters disapprove of Trump, but only 55% plan to vote Democrat. That 10-point persuasion gap is the 2026 midterm election. The Blueprint gives candidates a polled, legislatively grounded agenda to close it. You can give it a read here.
The BTR ban is not great, but also not the disaster it’s imagined to be.
BTR is basically just continuing the same failed SFH sprawl that got us all this NIMBYism in the first place.
If you ask, “what does our country look like in 20 years with or without BTR?”, it’s pretty obvious that we shouldn’t be relying on millions of SFH units to create even MORE renters out of the same people whom we should’ve been enabling to BUY their apartments and houses.