--- title: "While Lawmakers Cheer Bipartisan Housing Push, Tri Pointe CEO Issues Grim Warning About What’s Really Driving Costs Higher: 'It Not Going To Be Fixed...'" type: "News" locale: "en" url: "https://longbridge.com/en/news/290824917.md" description: "Tri Pointe Homes CEO Doug Bauer warned that the bipartisan housing bill will not solve America's affordability crisis, arguing barriers lie in state and local regulations rather than federal policy. He stated consumer confidence, not mortgage rates, drives demand, citing weak economic sentiment. While homebuilder stocks rallied on the news, Bauer believes the market overestimates the bill's impact on private construction, noting regulatory costs significantly inflate prices." datetime: "2026-06-25T10:53:19.000Z" locales: - [zh-CN](https://longbridge.com/zh-CN/news/290824917.md) - [en](https://longbridge.com/en/news/290824917.md) - [zh-HK](https://longbridge.com/zh-HK/news/290824917.md) --- # While Lawmakers Cheer Bipartisan Housing Push, Tri Pointe CEO Issues Grim Warning About What’s Really Driving Costs Higher: 'It Not Going To Be Fixed...' **Tri Pointe Homes**, now a subsidiary of **Sumitomo Forestry**, CEO **Doug Bauer** said Wednesday that the newly approved bipartisan housing bill is unlikely to solve America’s affordability crisis, arguing the real barriers to affordable housing lie at the state and local level rather than in Washington. Speaking on CNBC’s Squawk on the Street, Bauer said the 21st Century ROAD to Housing Act offers only marginal benefits for market-rate homebuilders such as Tri Pointe Homes Inc., despite investor optimism around the legislation. "The need for housing and a broader supply of affordable housing really has to happen at the state and local level," Bauer said. "It’s not going to be fixed at the federal level." The 21st Century ROAD to Housing Act, co-sponsored by Sen. **Elizabeth Warren** (D-Mass.) and Sen. **Tim Scott** (R-S.C.), includes more than 45 provisions aimed at boosting housing supply, reducing construction costs and limiting institutional purchases of single-family homes. The bill’s path remains somewhat uncertain after President **Donald Trump** cancelled a planned signing ceremony and said he would withhold his signature until Congress passes the SAVE America Act, though the legislation could still become law automatically if neither signed nor vetoed within 10 days while Congress remains in session. The bill sparked a sharp rally in homebuilder stocks on Wednesday. The **iShares U.S. Home Construction ETF** (BATS:ITB) rose about 6%, marking its strongest single-day gain in nearly a year, as investors bet faster permitting and reduced regulatory burdens could accelerate housing construction. Bauer, however, said the market may be overestimating the bill’s impact on private homebuilders. While the legislation could modestly reduce red tape around environmental reviews, Bauer said it primarily focuses on public housing and federal funding for low-income housing rather than stimulating market-rate construction. **Read Also: From Nissan Leaf To Military Drones? Anduril Eyes Shuttered Japan Factory: Report** ## Housing Demand Depends On Confidence Bauer also pushed back on the common view that mortgage rates are the primary driver of housing demand. "Interest rates don’t drive demand," he said. "What drives demand for housing are jobs and consumer confidence." According to Bauer, housing markets have remained choppy for the past two years as economic uncertainty, inflation and rising gas prices have weakened buyer confidence. That comes as U.S. housing starts fell 15.4% in May to an annualized rate of 1.18 million units, the lowest level since 2020, signaling broader weakness in residential construction. Bauer said affordability has improved somewhat, with home prices in B and C markets down roughly 10% to 15% over the past two years and A-market pricing down about 5% to 10%. ## Regulatory Costs In Focus Bauer’s comments also add to the growing debate over what is truly driving America’s housing crisis. Lawmakers, including Sen. **Mark Kelly (D-Ariz.),** have argued that Wall Street investors buying single-family homes are squeezing families out of the market. Bauer instead pointed to local regulation as the larger structural problem. Using California as an example, Bauer said zoning restrictions, CEQA environmental reviews, fees and permitting delays significantly increase housing costs. A recent National Association of Home Builders study found federal, state and local regulations add an average of $131,734 to the cost of a typical new single-family home, equal to 26.4% of the final sale price. "The federal government isn’t going to fix home prices and supply," Bauer said. "It’s really a state and local issue." _**Disclaimer:** This content was produced with the help of AI tools and was reviewed and published by Benzinga editors._ _Image via Shutterstock_ **Read Also: Dogecoin’s Official X Account Roasts Its Price Chart: ‘Stop Doing The Downward Dog’** ### Related Stocks - [TPH.US](https://longbridge.com/en/quote/TPH.US.md) - [1911.JP](https://longbridge.com/en/quote/1911.JP.md) - [ITB.US](https://longbridge.com/en/quote/ITB.US.md) ## Related News & Research - [Hanoi apartment flippers trapped as market downturn keeps buyers away](https://longbridge.com/en/news/295353604.md) - [Dream Finders Homes to Acquire Beazer Homes, Creating Sixth-Largest U.S. Homebuilder | BZH Stock News](https://longbridge.com/en/news/295216799.md) - [US existing homes fall 1.7% in July as record prices, high mortgage rates stifle would be-buyers](https://longbridge.com/en/news/295549034.md) - [Buyers face £55,000 in ‘hidden’ cost on new homes](https://longbridge.com/en/news/295260692.md) - [America's Top Mortgage Lender Suspends Dividend, Secures $2 Billion Lifeline as Housing Market Pressure Builds and Rates Hit 1-Year High](https://longbridge.com/en/news/295236998.md)