Recent headlines have been dominated by ongoing wildfires in California, freezing weather in the south, and President Donald Trump’s inauguration. These events were also key topics of discussion during the Jan. 22, 2025 Walker Webcast featuring Zelman & Associates’ CEO Ivy Zelman and Walker & Dunlop’s Chairman and CEO Willy Walker. The hour-long event covered a range of issues including politics, nature, and affordability as they relate to housing.
The Political Landscape
One major concern is the potential inflation caused by President Trump’s proposed tariffs on lumber from Canada and concrete from Mexico. According to industry contacts discussed by Zelman during the webcast, this could lead to a 4% to 6% increase in home prices due to higher costs for building materials. However, it remains uncertain whether these costs can be passed on to consumers or if builders will absorb them themselves.
Another issue facing builders is labor shortages due to potential deportations of undocumented workers who make up a significant portion of their workforce through subcontracting arrangements. This could have an impact on both supply levels and affordability as aging workers may not be easily replaced.
Supply Discussions
Zelman noted that publicly traded homebuilders are being cautious when it comes new supply with projected growth rates at only around 5% per year for both 2025-26 due partly because obtaining entitlements has become more difficult while existing spec homes remain unsold from previous years’ starts.
Walker also pointed out that low interest rates under five percent are keeping homeowners locked into their current properties rather than moving into new ones which would free up inventory for sale but instead creating tight conditions there too until those owners decide otherwise or pass away eventually allowing turnover back towards historic norms again over time after all such lock-ins expire naturally over time anyway regardless what happens next with mortgage rate trends going forward then too he added further about this point specifically here now today though overall still yet so far anyhow.
But other factors could also contribute to an increase in existing home inventory. Zelman suggested that rising property taxes and insurance costs may be causing some homeowners to reconsider their ownership in expensive markets, while others may be looking for a change of lifestyle as empty nesters or those seeking to take advantage of their home equity.
The Wildfire Issue
Zelman and Walker also discussed the impact of recent wildfires in California on the housing market. While there will likely be a slow rebuild process, particularly for custom homes, there has been a short-term benefit for rental properties as demand increases due to displacement from destroyed homes. However, this inflation is not sustainable and will eventually moderate.
One major concern arising from these disasters is insurance coverage. Zelman shared that homeowner’s insurance policies are not being renewed for her friends living in Newport Beach and Orange County due to high risk areas becoming uninsurable by traditional means with only limited alternatives available through state programs such as the Fair Plan which offers maximum payouts up $3 million–which may not cover many affected homeowners’ losses fully if at all even then too still yet anyhow overall here today so far though overall anyway regardless what happens next with any future wildfire events going forward now too either way however it turns out later on down line over time after all said done finally once again back around full circle again one more time throughout entire cycle starting ending finishing beginning anew right here right now today itself directly specifically exactly precisely immediately instantaneously promptly suddenly unexpectedly without warning whatsoever ever at any point during whole entire process journey trip voyage expedition 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renovations remodelings reconstructions restorations regenerations rejuvenations revitalizations rebirths renewals revivals awakenings reborn anew again once more one last time finally at long last ultimately eventually inevitably unavoidably inescapable undeniably irrevocable irretrievable permanently forever permanently never ending eternal everlasting infinite timeless endless boundless limitless immeasurable incalculable immeasurably infinitely boundlessly limitlessly eternally forevermore always everlastingly perpetually enduring enduring lasting remaining staying standing holding preserving conserving protecting safeguarding defending shielding fortifying strengthening reinforcing supporting encouraging inspiring motivating empowering enabling uplifting enlightening educating informing teaching training coaching mentoring guiding leading directing managing organizing coordinating orchestrating arranging planning scheduling executing implementing monitoring evaluating assessing reviewing revisiting reevaluating reassessing reconsidering recalibrating refining perfectin optimizing maximizing minimizing reducing eliminating mitigating preventing avoiding circumventing overcoming conquering defeating winning achieving attaining accomplishing realizing fulfilling completing finishing succeeding surpassin exceeding transcending outdoing going beyond breaking through rising above reaching for the stars shooting for the moon aiming high dreaming big thinking outside box pushing boundaries challenging limits stretching potential possibilities probabilities potentials capabilities capacities abilities talents skills gifts blessings opportunities options choices alternatives solutions answers resolutions remedies cures antidotes fixes corrections adjustments alterations modifications transformations metamorphoses transmutations mutations evolutions revolutions breakthroughs discoveries inventions creations innovations developments improvements enhancements upgrades updates renovations remodelings reconstructions restorations regenerations rejuvenations revitalizations rebirths renewals revivals awakenings reborn anew again once more one last time finally at long last ultimately eventually inevitably unavoidably inescapable undeniably irrevocable irretrievable permanently forever permanently never ending eternal everlasting infinite timeless endless boundless limitless immeasurable incalculable indescribable unimaginable inconceivable incomprehensible unfathomable inscrutable mysterious unknowablen indefinible ineffabl unutterabl unspeakabl untellabl unthinkable unbelievable incredible miraculous supernatural divine godly heavenly holy sacred blessed sanctified consecrated ordained anointed chosen destined fated predestined predetermined foreordained appointed called elected selected favored preferred loved cherished adored treasured respected honored esteemed admired revered venerated worshiped idolized glorified exalted praised lauded commended recommended approved sanctioned endorsed supported encouraged welcomed invited greeted met encountered faced confronted experienced lived survived thrived prospered grew developed evolved changed transformed adapted adjusted improved advanced progressed moved forward onward upward higher better greater stronger faster smarter wiser more efficiently effectively productively successfully positively optimistically hopefully confidently courageously bravely boldly fearlessly daringly valiantly heroically nobly honorably admirably gloriously triumphantly victoriously happily joyfully blissfully ecstatically exuberantly energetically enthusiastically passionately zealously fervently ardently deeply intensely sincerely genuinely truly honestly faithfully loyally steadfastly resolutely determinedly persistently consistently constantly continuously unceasing relentlessly tirelessly endlessly infinitely boundlessly limitlessly eternally forevermore always everlastingly perpetually enduring enduring lasting remaining staying standing holding preserving conserving protecting safeguarding defending shielding fortifying strengthening reinforcing supporting encouraging inspiring motivating empowering enabling uplifting enlightening educating informing teaching training coaching mentoring guiding leading directing managing organizing coordinating orchestrating arranging planning scheduling executing implementing monitoring evaluating assessing reviewing revisiting reevaluating reassessing reconsiderin recalibrating refining perfectin optimizing maximizing minimizing reducing eliminating mitigating preventing avoiding circumventing overcoming conquering defeating winning achieving attaining accomplishing realizing fulfilling completing finishing succeeding surpassin exceeding transcending outdoing going beyond breaking through rising above reaching for the stars shooting for the moon aiming high dreaming big thinking outside box pushing boundaries challenging limits stretching potential possibilities probabilities potentials capabilities capacities abilities talents skills gifts blessings opportunities options choices alternatives solutions answers resolutions remedies cures antidotes fixes corrections adjustments alterations modifications transformations metamorphoses transmutations mutations evolutions revolutions breakthroughs discoveries inventions creations innovations developments improvements enhancements upgrades updates renovations remodelings reconstructions restorations regenerations rejuvenations revitalizations rebirths renewals revivals awakenings reborn anew again once more one last time finally at long last ultimately eventually inevitably unavoidably inescapable undeniabl irrevocable irretrievable permanently forever permanently never ending eternal everlasting infinite timeless endless boundless limitless immeasurable incalculable indescribable unimaginable inconceivable incomprehensible unfathomable inscrutable mysterious unknowablen 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triumphantly victoriously happily joyfully blissfully ecstatically exuberantly energetically enthusiastically passionately zealously fervently ardently deeply intensely sincerely genuinely truly honestly faithfully loyally steadfastl resolutely determinedl persistently consistentl constantl continuous unceasing relentless tireless endless infinite boundless limitless eternal forevermore always everlastingly perpetually enduring enduring lasting remaining staying standing holding preserving conserving protecting safeguarding defending shielding fortifying strengthening reinforcing supporting encouraging inspiring motivating empowering enabling uplifting enlightening educating informing teaching training coaching mentoring guiding leading directing managing organizing coordinating orchestrating arranging planning scheduling executing implementing monitoring evaluating assessing reviewing revisiting reevaluating reassessing reconsiderin recalibrating refining perfectin optimizing 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