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National Policy Momentum and Industry Outlook to Start 2026

The start of a new year often brings new policy direction, and January 2026 has been no exception. As conversations take shape in Washington, HBASE has been closely monitoring and engaging on issues that matter most to our members, including housing supply, regulatory reform, workforce development through Job Corps, and the ongoing cost pressures facing the building industry. Early signals from both the Administration and Congress suggest growing awareness of the need to remove barriers to housing production and improve predictability for builders and developers nationwide.

Recent activity in Washington reflects a broader recognition of the nation’s persistent housing shortage and the economic consequences tied to limited housing supply. Policymakers from both parties have increasingly acknowledged that affordability challenges are closely linked to rising construction costs, regulatory complexity, and infrastructure constraints. As a result, several early actions and proposals have focused on balancing economic growth with the need to increase housing production at all price points.

One notable development came with President Trump’s announcement delaying higher tariffs on imported furniture, kitchen cabinets, and vanities. These tariffs, originally scheduled to take effect on January 1, 2026, have now been postponed until January 1, 2027. This one-year delay helps ease near-term cost pressures for builders and remodelers while providing additional time to evaluate long-term impacts on supply chains, pricing, and material availability. While tariffs remain an ongoing concern, the delay offers temporary relief in an already challenging affordability environment.

Congress has also taken meaningful steps on housing legislation early in the session. The House Financial Services Committee advanced the bipartisan Housing for the
21st Century Act, signaling momentum for broader housing legislation expected to be considered later in 2026. This bill is designed to address long-standing barriers to housing supply and improve access to financing, two priorities that remain central to NAHB and HBASE advocacy efforts.

On the regulatory front, the House passed the PERMIT Act, legislation intended to bring greater clarity and predictability to the Clean Water Act permitting process. Uncertainty around permitting timelines and jurisdiction has long contributed to project delays and increased development costs. These reforms aim to reduce regulatory overlap and improve project certainty for builders and developers.

In addition to legislative activity, regulatory agencies continue to advance rulemaking that directly affects the building industry. HBASE member Joel Ingle participated in one of three national public listening sessions hosted by the Environmental Protection Agency and the U.S. Army Corps of Engineers, alongside other HBA members and staff from across the country. These sessions focused on the proposed updated definition of “waters of the United States” (WOTUS), helping ensure the building industry’s perspective is clearly represented as the rulemaking process moves forward.

The House also approved the SPEED Act, legislation that would reform portions of the National Environmental Policy Act (NEPA) to help accelerate multifamily housing production. These changes are particularly important as communities across the country work to address workforce housing needs and expand housing options by reducing unnecessary delays in project approvals.

While policy momentum is encouraging, market conditions remain challenging. Builder confidence edged slightly higher at the end of 2025 but continues to remain well into negative territory, reflecting ongoing concerns around interest rates, affordability, labor availability, and regulatory costs. In a positive step for buyers, the Federal Housing Administration announced its 2026 Nationwide Forward Mortgage Loan Limits, increasing maximum loan amounts for FHA-insured single-family homes and helping expand access to homeownership in higher-cost markets. Together, these early developments highlight the active role our industry continues to play in shaping housing policy at the national level. While many of these conversations will continue to evolve throughout the year, staying informed and engaged remains critical as decisions are made that directly impact how and where homes are built.

Looking Ahead: IBS 2026 in Orlando

As we move through February, many HBASE members will soon be heading to Orlando for one of the most important industry events of the year, the NAHB International Builders’ Show® (IBS), taking place February 17–19, 2026, at the Orange County Convention Center.

IBS is the world’s largest annual building industry trade show and a premier opportunity for builders, remodelers, and industry professionals to come together at the national level to learn, network, and gain practical insights that can be applied directly to their businesses. With more than 2,350 exhibitors, 120+ education sessions, and thousands of attendees from across the country, IBS offers unmatched access to the ideas, innovations, and education shaping the future of our industry.

From discovering new products and technologies to touring The New American Home® and The New American Remodel®, IBS delivers value well beyond the show floor and provides real-world strategies members can take home and put to work immediately.

As an HBASE member, you also receive discounted registration pricing for IBS, one of the many benefits of membership. If you have not yet registered, it’s not too late. Click here to learn more and take advantage of member savings by registering for IBS 2026.

The first part of 2026 has already highlighted how important it is to stay informed and engaged as housing policy and market conditions continue to take shape. As members of HBASE and NAHB, you benefit from ongoing advocacy, industry representation, and access to timely information and education. Together, these efforts help ensure our members are prepared, informed, and positioned for success as the year continues.

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