The Rent Roll with Jay Parsons EP#51 Dennis Shea | Rate Cuts & Pro-Housing Policy
Sep 18, 2025
Dennis Shea, Executive Director of the J. Ronald Terwilliger Center for Housing Policy, shares insights from his extensive experience in housing and trade. He discusses the potential impact of a declared 'national housing emergency' and the need for pro-housing policies. Shea emphasizes the importance of reforming the Low-Income Housing Tax Credit (LIHTC) to enhance efficiency. He also advocates for a new renter tax credit designed for essential workers and explores strategies to tackle the affordable housing crisis. Tune in for fresh perspectives on housing policy!
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Lagged Shelter Data Masks True Inflation
- CPI shelter is highly lagged and keeps headline inflation artificially high.
- Using real-time new-lease rent data shows inflation near or below the Fed's 2% target for much of the past two years.
Rate Cycle Will Affect Future Rent Pressure
- Past low rates increased supply which cooled rent inflation.
- Current higher rates have crushed construction pipelines and may push rents up again in the future.
Bid-Ask Gap And Tight Capital Keep Sales Low
- Investors expect aggressive deployment at cap rates around 6.6%, creating a large bid-ask gap.
- Access to capital remains constrained, though survey scores show slow improvement.
