Fannie and freddie Management Under scrutiny, Land and Labor Shortages Loom Large
LAS VEGAS – Concerns over the direction of fannie Mae and Freddie Mac, coupled with persistent challenges in land availability and labor supply, dominated discussions at the recent Zelman Housing Conference, according to attendees. Investors are seeking greater clarity regarding the government-sponsored enterprises’ (GSEs) leadership and strategic planning.
A key point of contention centers on the independence of Fannie and Freddie’s board management. “There’s nothing autonomous about the way that Fannie and Freddie are being managed from a board standpoint today,” one source stated. Further fueling debate was a recent disagreement between PulteGroup CEO Ryan Pulte and Freddie Mac CEO Michael Bessent, prompting questions about leadership and strategic direction. “The question there would be, who takes the lead? Who’s got the pen that says this is the plan of action for Fannie and Freddie?” asked attendee walker.
Beyond the GSEs, a critical shortage of buildable land is being cited as a major impediment to addressing the housing crisis. Adrian Foley, CEO of Brookfield Residential, asserted, “We don’t have a housing crisis, we have a land crisis.” Builders are urging the Trump governance to expedite land entitlements, including opening up federal land and easing zoning restrictions. Foley proposed a “CHIPS Act for housing,” referencing the government’s investment in semiconductor manufacturing, in a recent CNBC interview.
Adding to the industry’s woes is a persistent labor shortage. Doug Yearley, CEO of Toll Brothers, emphasized that even with sufficient land, a lack of available workers would hinder construction. Smaller builders have reported labor losses due to fears of ICE raids, prompting calls for increased training programs and a complete immigration policy. Yearley noted the diversity of the construction workforce, stating, “You go to any of our home sites, and it’s [like] the United Nations.”
