HUD’s erasure of DEI contracts, builders expressing apprehension and Australia’s first rate cut in more than four years. From the wild and wooly world of real estate, here are our Hits and Misses for the week of Feb. 17-21.
Hit: An End to DEI Daffiness. Kudos to Housing and Urban Development (HUD) Secretary Scott Turner for cancelling $4 million in contracts that were designed to foster Diversity, Equity and Inclusion (DEI) programs within the agency. Turner said the contracts “were supposed to be for cultural transformation and outward mindset thinking, and subscription services.” Turner declared the money saved from the terminated DEI contracts “should go to serve the American people,” adding “DEI here at HUD is dead.”
Miss: Agitated Builders. The triple threat of potential tariffs, still-elevated mortgage rates and high housing costs pushed builder confidence in the single-family home market down in February. The latest National Association of Home Builders (NAHB)/Wells Fargo Housing Market Index (HMI) dropped five points this month to 42; any number over 50 indicates that more builders view conditions as good than poor. February’s reading is the lowest level for the HMI in five months. It is understandable why builders are apprehensive, and it is incumbent upon the Trump administration to communicate clearly with all stakeholders in the housing market on the work being done to bring down costs and ensure progress is being made to a stronger economy.
Hit: The Right Person for the Job. This week, Politico reported Mark Calabria was tapped by the Office of Management and Budget and will help run the Consumer Financial Protection Bureau (CFPB) until a new full-time director is confirmed. Calabria have the title of program associate director and will be tasked with handling the portfolio related to bank regulations and reviewing regulations related to the CFPB and the Federal Housing Finance Agency – Calabria was the director of the latter agency during the first Trump term. Calabria was previously the chief economist for Vice President Mike Pence and was the director of financial regulation studies at the Cato Institute – when it comes to thought leadership on housing policy, you can’t get better than him!
Miss: Frozen in Detroit. It’s been a rough week for residents in the southeast section of Detroit. USA Today reports a 54-inch steel transmission line built in the 1930s ruptured on Monday, flooding the streets with knee-deep water. Dozens of displaced households were evacuated by inflatable boats. If that wasn’t bad enough, the harsh winter weather dropped the temperatures and the vehicles that were not removed were frozen in knee-deep ice-clogged streets. However, those who suffered auto losses and home damage have some good news – Mayor Mike Duggan declared the water supply agencies, the Great Lakes Water Authority, and the Detroit Water and Sewerage Department will reimburse the costs from damages expenses that are not covered by insurance.
Hit: Down Under Progress. This week, Australia’s central bank enacted its first rate cut since November 2020. The Reserve Bank of Australia announced the benchmark interest rate will be reduced by 25 basis points to 4.10%. The central bank held the rate at 4.35% since November 2023 after 13 consecutive rate hikes designed to tame inflation. Yes, the Australians are lagging behind the US, Canada, UK and EU when it comes to rate cuts, but the Reserve Bank of Australia noted this is not a one-size-fits-all situation because other countries “have been easing monetary policy as they become more confident that inflation is moving sustainably back towards their respective targets.” Still, this is a fiscal case of better late than never.
A Get Well Soon Wish: We’re sending our best wishes to Mauricio Umansky, CEO of The Agency and co-founder of the American Real Estate Association, who is recovering from a skiing accident in Aspen, Colorado, last week that resulted in a broken clavicle. People.com reported Umansky shared the news of his surgery following the accident, which resulted in having a metal plate and 12 screws put in. “Thank you to everyone who has reached out,” Umansky wrote on his Instagram account, adding, “I have felt so much love and support.” Umansky, who gained public prominence through the “Buying Beverly Hills” television shows, is one of the most provocative figures in today’s real estate industry and we look forward to having him back on his feet.
Phil Hall is editor of Weekly Real Estate News. He can be reached at [email protected].
Photo: OJO Images / Getty Images
