Trump’s Policies Could Raise US Home Prices

Tariffs and deportations threaten to make housing more expensive, pushing homeownership out of reach for millions.

Donald Trump campaigned on bringing down the cost of living, including house prices. But his administration is embracing policies that probably will make housing more expensive. Putting tariffs on Canadian lumber, drywall from Mexico, and imported appliances raise home prices. And deporting millions of undocumented workers will hamstring a construction industry where just under a quarter of workers are undocumented immigrants, said the left-leaning Center for American Progress.

“Anything that pushes the price of a home [or] build costs higher is going to be net detrimental for home buyers right now,” says Rick Palacios Jr. of real estate research firm John Burns Research and Consulting. “They are having a tough time as it is.” The new Trump policies come at a precarious time for the housing industry. Home prices hover at record levels, largely because construction has failed to keep up with demand.

The combination of high home prices and high mortgage rates has pushed homeownership out of reach for millions of Americans. There are few reasons to think the picture for buyers will dramatically improve this year. “The spring selling season will be very challenging if we don’t see some relief on rates,” says Ivy Zelman, executive vice president of housing research firm Zelman & Associates.

Mortgage rates have fallen to a recent 6.76%, but remain high. To be sure, Trump’s drive to cut regulations and lower interest rates could spur both home building and housing demand. The president directed agencies to lower the cost of housing and increase the supply of homes in an executive order decrying the burden that regulatory requirements add to the costs.

Treasury Secretary Scott Bessent’s focus on lowering long-term yields could also be a boon for buyers. The U.S. housing crisis is a supply and- demand problem. It would take three or more years of home building at current rates to meet the need for 3.7 million units, estimates Freddie Mac Deputy Chief Economist Len Kiefer.

The country has built an average of only one million single-family homes over the past five years, a trend that forecasters expect to continue in 2025. “The only way that we are going to solve [high home prices] is to put more supply on the market,” says Jim Tobin, CEO of the National Association of Home Builders, or NAHB, noting that both presidential candidates ran on improving housing affordability. “Some of the actions we’ve seen after that are maybe running counter to that.”

Inflation hit every part of the economy in the wake of the Covid-19 pandemic, and home materials were whacked particularly hard: The cost of construction materials is up more than 30%since the pandemic began, according to the NAHB. As lockdowns snarled supply chains, builders faced significant shortages of nearly everything, from windows and doors to home appliances, right when buyer demand was reaching its zenith.

It could get worse. New tariffs, including those on Canada and Mexico, complicate home building supply chains and ultimately drive up costs for buyers, the industry warns. “The cost of building is now just going to go up, and is ultimately going to be borne by the home buyer or renter,” says the NAHB’s Tobin. Tariffs on Canada and Mexico, which produce lumber and the gypsum used in drywall, are of concern—as are appliances from China.

The president announced the tariffs in early February before postponing enforcement of those on Canada and Mexico. An indication of future construction, the NAHB’s sentiment index, dropped in February by five points, its greatest decline since last May. “Uncertainty over the scale and scope of tariffs has builders further concerned about costs,” says Robert Dietz, the trade group’s chief economist.

“There is now more concern around deportation risk,” says Zelman, the housing researcher. A quarter of home builder respondents to the firm’s January survey said that the fear of immigration service raids resulted in higher levels of absenteeism among subcontractors, with the greatest impacts in Baton Rouge, La.; Chicago; Bakersfield, Calif.; San Antonio and Austin, Texas; Greensboro, N.C.; and Myrtle Beach, S.C. Risks exist outside of home supply.

Fannie Mae and Freddie Mac, the two mortgage market giants that buy, securitize, and guarantee loans from lenders, have been under government conservatorship since the 2008-09 financial crisis. The first Trump administration sought to remove the companies from conservatorship but stopped short. If the mortgage giants ultimately lose their implied government guarantees, mortgage rates would probably climb. “Our housing finance system, while it’s probably not how you would have drawn it up on a whiteboard from scratch, is the envy of the world,” says Bob Broeksmit, the CEO of the Mortgage Bankers Association.

“Any responsible exit would be accompanied by a legislated explicit guarantee on the mortgage-backed securities of Fannie and Freddie so as not to jeopardize that system.” How—and whether—the administration releases the companies from conservatorship has yet to be seen. Bill Pulte, Trump’s nominee to lead the Federal Housing Finance Agency— which regulates Fannie and Freddie— noted the risks at his confirmation hearing in February.

“While their conservatorship should not be indefinite, any exit from conservatorship must be carefully planned to ensure the safety and soundness of the housing market without upward pressure on mortgage rates,” said Pulte, whose grandfather started home builder PulteGroup, of which Bill Pulte is a former director.

Home purchases have already slowed because of high prices and a lack of resale inventory. Builders have been offering incentives to lure buyers, and investors are souring on the sector. The iShares U.S.Home Construction exchange-traded fund is down about 6.1%so far this year, compared with the S&P 500 index’s 1.9%loss. “The worry in the stocks is that margins are going to compress,” says BTIG analyst Carl Reichardt.

The headwinds could weigh on new-home construction for months or even years. That could push up prices further. “Anything that makes home prices increase more than they would otherwise is concerning,” says Broeksmit of the Mortgage Bankers Association. “We don’t want a generation that has given up on homeownership.” 

SourceL: Barrons

Parking for the upwardly mobile

Inside Bentley tower’s $6m apartments with high-rise parking in Miami

These $6m apartments could help, writes  It is one of life’s great first world problems. You buy a luxury apartment in a high-rise building but then have to lug your Whole Foods shopping from the communal car park to your door.

It was a conundrum bosses at Bentley, the carmaker, were keen to solve in its first branded residential tower, which opens in 2028 in Miami. The Dezervator lift — named after Bentley’s partner, Dezer Development — is designed to be the “ultimate in seamless privacy” allowing residents to travel directly up to their apartments inside their cars.

Each apartment will have its own huge garage next to it. Residences on the east side of the building have an 144 square metre area that can hold up to four vehicles, while those on the west side have 106 square metres, where they can park three cars.

The 216 residences will be spread over the 62 floors, while each balcony will have its own private heated swimming pool and summer kitchen — with sweeping views of the ocean.

Prices for the apartments start at $5.8 million. The building will also have a private residents’ only restaurant led by Todd English, a four times winner of the James Beard culinary awards, who will curate the dining experiences.

There will also be a cinema, a whisky bar and a beauty salon complete with hair styling, manicure, pedicure, and make-up facilities. Four-legged residents will be able to indulge at the pet spa that is “designed in partnership with Bentley Motors” and features washing and drying services.

Ben Saltmer, the product and lifestyle design manager for Bentley, said: “We have applied the same attention to detail that goes into our cars into this very building. “Each space is different, but with distinctive Bentley design cues styled harmoniously throughout — right down to a functional area like Bentley pet spa concept.

“Despite practicality being paramount, the area should have an elevated experience. We achieve this through exquisite materiality and subtle Bentley design signatures, an ethos we’ve followed throughout the design of the building.

“For instance, in the pet spa we’ve used the Bentley diamond motif when giving the surfaces a non-slip quality. This diamond signature extends graphically to the shelving above the main bath area that houses towels, shampoos, and pet-friendly fragrances.”

Saltmer said that pets visiting the spa will be “guided up the steps, washed in the bath, guided up to the grey marble surface for drying, then guided down the steps once dry”, adding: “This is a practical space but also a luxurious sanctuary for pet and owner.”

The building’s cinema has been designed to mimic the concept of a Bentley car interior. Saltmer said: “A cosseting sofa wraps around the back of the rear three walls, embracing residents in the space.”

There is also a “state of the art” games room equipped with VR headsets and golf simulators.

“The whisky bar design is inspired by the iconic matrix grille of Bentley’s cars,” Saltmer added. As it will be suspended from the ceiling, the bar will appear to be floating.

Car manufacturers moving into bricks and mortar has become a trend recently. Porsche has already opened a property in Miami while Aston Martin is preparing to do the same. Mercedes-Benz and JDS Development Group are celebrating the sales launch of the second tower at Mercedes-Benz Places in Miami.

It is the brand’s first real estate project in the US and one of the largest under construction in Florida. It launched Tower 1 last year and sold all 100 apartments in just four days.  

Source: The Times

The bedding buying guide

Everything you need to know, from Egyptian cotton to thread count and washing rules

Is Egyptian cotton the holy grail? Should you be buying bamboo? Will silk save your hair? We asked the experts

There is a lot of information online about what makes good bedding. Dig into it, however, and you’ll see that most advice comes from the bedding brands themselves, making it tricky to sort facts from marketing hype.

To cut through the noise, we asked independent experts to help demystify some of the most common bedding questions, from decoding thread count to unpacking bamboo’s sustainability credentials. We heard from technical textile consultant Beverley Carter and textile expert and fashion consultant Sarah Denise Cordery. We also consulted sleep gurus James Wilson, AKA the Sleep Geek, and Max Kirsten, known as the Sleep Coach, to find out what has worked for their clients. For a beauty professional’s take on the benefits of silk bedding, we turned to skincare specialist Dr Kemi Fabusiwa.

For those more subjective queries – the flat v fitted sheet debate, or whether to go Oxford with your pillowcases – we consulted interior design professionals for an insiders’ take. Thirteen of them also shared their favourite bedding brands with the Filter.

Which material is best?

The consensus is that no one material is “best” – it’s about what’s right for the individual. “It makes sense to go for breathable, thermoregulating materials that prevent overheating and feel nice on your skin,” says Kirsten. His preference is cotton or bamboo, but some of our interior designers swore by linen.

Cotton is the most common bedding material, and all our experts recommend that if you do plump for it, look for the 100% sort for maximum comfort and breathability, particularly if you’re a hot sleeper. A few factors will affect how cotton feels: the quality of the threads used, the ply (the number of single threads twisted together), the type of weave and the treatment of the cotton. Then there is the thorny issue of thread count to unpick.

Is a higher thread count better?

“If you took a magnifying glass to one square inch of fabric, then counted the number of threads going vertically and horizontally, that would give you the thread count,” says Cordery. “It’s like the muscle of the fabric; the more thread you’ve got there, the heavier and smoother the material will be.”

Generally, you’ll see bedding marketed from 200 thread count up to 1,000-plus. But these claims can be misleading, says Cordery, since quality is dependent on the use of single-ply threads. She explains that some companies cheat the system by using two-ply (or even three- or four-ply) instead. “These are shorter threads and aren’t as high quality; they’re twisted together, which means the thread count will be doubled, but the fabric won’t be as strong.” So, a two-ply 300-thread-count product could be marketed as 600 and may feel slightly thicker but, Cordery warns, could bobble more easily – and no one wants bobbly sheets.

How can you tell if the threads are one-ply or not? With difficulty, as it’s not information we found readily available from brands. Cordery recommends feeling the fabric and checking if it starts to bobble when rubbed if you’re buying in-store. If the thread count is suspiciously high and the price seems too good to be true, it probably is. After all, says Cordery, “it’s very difficult to get 1,000 threads in a square inch of fabric unless it’s a very fine thread.”

Expect to pay £100-160 for a double high-thread-count sheet from mid-range retailers. In contrast, we found sheets marketed as 1,500 thread count for less than £20 on Temu and AliExpress.

And even if bedding is single-ply, 100% cotton and the thread count claims are legitimate, Wilson says a high thread count may not be the best solution for everyone: “Some people claim a higher thread count makes the cotton less breathable and can make you hotter in bed.” And if affordability and easy care are the top priorities, there are plenty of good-quality cotton-rich blends around, which will be cheaper than pure counterparts, quicker to dry and crease less easily.

Is Egyptian cotton better than cotton from anywhere else? If so, why?

Egyptian cotton has benefited from very effective marketing in recent years, but not all bedding carrying the name is equal. The thing to look for is “long-staple” cotton. Giza cotton, a variety grown only in the Nile valley, is known for its long, fine fibres and is touted as the most premium. “There are fewer breaks in the thread and that translates to a soft, long-lasting fabric that ages very well.”

That’s not to say other countries can’t grow long-staple cotton fibres – Pima cotton, for example, which grows in Peru and the south-west of the US – but all our experts concur that 100%, one-ply Giza Egyptian cotton is extremely high quality and can reach those high thread counts without the material feeling too thick or rigid. As you would expect, the price tag reflects this.

Percale v sateen weave

The weave type also affects the feel of cotton and influences the thread count. You’ll see cotton bedding categorised as sateen or percale. “A sateen weave is more densely packed together, so it will feel silky and have a lustre to it,” says Cordery. It will have a higher thread count and feel thicker and warmer than percale. A percale weave has more space between the threads and a cool, crisp feel. It may feel more lightweight and breathable and will dry quicker, but it also creases more easily than sateen.

Sustainability

You should be able to find clear information about a brand’s sustainability credentials on its website. Cordery recommends looking for the likes of the Better Cotton mark, an international sustainability initiative, and Oeko-tex certification, which ensures products haven’t been manufactured using harmful chemicals. If it’s organic cotton, look for the Gots, Global Organic Textile Standard, which certifies that the production process is environmentally and socially responsible.

Linen v cotton: which is best?

Some of our interiors experts swear by linen. Katherine Ormerod, author of Your Not Forever Home, loves it all year round, finding it cool in summer and “cocooning and warm” in winter. Banjo Beale, an Australian-born, Scotland-based interior designer and author of Wild Isle Style, is definitive: “Once you go linen you never go back.” He also praised the material for its breathability.

For others, cotton can’t be beaten. Charlotte Tilbury from Penrose Tilbury interior design doesn’t budge from high-thread-count bedding: “It has a comforting weight to it and drapes beautifully.” Interior designer Eva Sonaike says the “soft” and “luxurious” feel of cotton against the skin is unsurpassed by any other material.

Both linen and cotton are natural fabrics derived from plants, but what are the technical differences? “Cotton is harvested from the soft tufts of fibre that form after the cotton plant’s flowers die off,” says Carter. “They’re cleaned, combed and spun to yarn.” Linen, meanwhile, is derived from the flax plant. “It comes from the long fibres within the stems. For them to be usable, they’re steeped in water – retted – until the outer surface rots away and the fibre within separates.” The result is a looser weave that’s rougher to the touch than cotton and has that lived-in wrinkled appearance.

Both are durable and breathable, but linen has the edge here; it’s stronger and more breathable thanks to the looser weave. Plus, it’s particularly hypoallergenic. “Moisture breeds bacteria and linen wicks moisture away from your skin more effectively than cotton,” says Cordery. These qualities make it good for hot sleepers.

On the downside, linen is usually more expensive due to the more labour-intensive production process and because it doesn’t grow as widely as cotton. Some people may find it coarse, but it softens over time with washing.

What about bamboo?

Bamboo bedding has a soft, silky texture with significant hypoallergenic qualities; it’s effective at wicking away moisture and is antibacterial and antifungal. Wilson and Kirsten both report that bamboo works for their clients for whom temperature is an issue and those with skin conditions such as eczema. Carter reminds us that bamboo is a “quick-growing renewable material”, which is often why it’s trumpeted as a sustainable choice.

However, all our experts flag the use of potentially environmentally harmful chemicals in the manufacturing process. Price-wise, 100% bamboo sheets can be more expensive than some cotton versions, but are more affordable than, say, high-thread-count Egyptian cotton. Pure linen also tends to be pricier than bamboo.

For a similar silky, soft fabric that is kinder to the environment, Cordery recommends lyocell (sold as Tencel). It’s derived from wood pulp and is made in a closed-loop process, which recycles most of the water used in production, stopping harmful solvents leaking out into the environment. You may see bedding made with bamboo and Tencel blended with other textiles, such as cotton, so check the sustainability of those if that’s important to you.

Source: The Guardian