New Environmental Review Process Will Boost Infrastructure Projects
The Trump administration today proposed regulatory reforms to the National Environmental Policy Act that will boost infrastructure projects that are needed to support residential land development projects.
“The plan to reform the National Environmental Policy Act (NEPA) is the most recent example of the Trump administration’s ongoing efforts to reduce harmful regulations that hurt small businesses and impede economic growth,” said NAHB Chairman Greg Ugalde. “Updating NEPA will streamline the federal permitting process and allow badly needed transportation and infrastructure projects to move forward. In turn, this will build strong communities and support a thriving housing market.”
NEPA was intended to provide an important environmental check on major federal actions. However, it has often been misused to improperly delay or prohibit vital infrastructure projects or to thwart implementation of needed reforms to federal environmental regulations.
NAHB CEO Jerry Howard represented NAHB at the White House event announcing the proposed overhaul on how federal agencies will implement NEPA. NAHB believes the administration deserves credit for its actions to remove federal regulatory barriers across all federal agencies that impact the larger U.S. economy, including regulations that affect housing.
“We welcome any NEPA reforms that streamline the regulatory process and reduce unnecessary costs and delays,” said Howard. “At the same time, we urge President Trump and the administration to continue their efforts to highlight and eliminate regulatory barriers to affordable housing at all levels of government.”
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Latest Economic News
The U.S. labor market rebounded in October, with nonfarm payroll employment increasing by 165,000 jobs and the unemployment rate declining to 4.1%. However, the improvement in overall employment contrasts with continued weakness in residential construction, where employment fell by 16,400 jobs, the largest monthly decline since March 2021.
New multifamily housing confidence weakened year-over-year in the third quarter, according to the Multifamily Market Survey (MMS) by the National Association of Home Builders (NAHB). The MMS produces two separate indices. The Multifamily Production Index (MPI) had a reading of 41, down five points year-over-year, while the Multifamily Occupancy Index (MOI) had a reading of 69, also down five points year-over-year.
Mortgage application activity declined in October as the 30-year fixed mortgage rate rose sharply again. The Mortgage Bankers Association’s (MBA) Market Composite Index, a measure of total mortgage application volume, fell 14.1% month-over-month in October on a seasonally adjusted basis. Compared to a year ago, total mortgage applications were 39.8% lower.