Economist Craig Shapiro has been calling for a national housing policy overhaul, as he believes the housing market is "rigged," amid New York City mayoral candidate Zohran Mamdani ‘s ambitious housing reform agenda. What Happened: In a detailed Substack essay and an X thread, the macro strategist at the Bears Trap Report, Shapiro, highlights how the housing market has become an “over-subsidized, under-scrutinized asset class in America.” According to him, “Housing is no longer just shelter,” it's an asset class, and “It's time for a reset — one that unwinds the monetary premium embedded in home prices and redirects policy toward making shelter accessible again.” This comes amid the rising popularity of the Democratic primary winner for mayor of New York City , Mamdani. Apart from affordable childcare, taxing the rich, free buses, and raising minimum wages, his ambitious agenda also includes a $70 billion dream of building 200,000 units of affordable housing and freezing rent on the city’s nearly one million rent-stabilized apartments. Meanwhile, Shapiro explains that housing policy in the U.S. is not just economic — it’s political. The current regime benefits several powerful groups: Homeowners who rely on home appreciation for retirement security. Real estate agents and lenders earn more from higher prices. Institutional landlords benefit from the limited supply and rising rents. Local governments fear voter backlash if property values fall. "And so, despite growing unaffordability, tax advantages for homeowners persist. Zoning laws continue to restrict supply. Investors still enjoy favorable treatment through 1031 exchanges and depreciation loopholes. All while 36% of Americans — renters — receive almost none of these benefits," he adds.

See Also: Too Many Home Sellers, Fewer Buyers: Experts Predict Housing Prices To Fall In 2025 Without A Fed Put In Place Why It Matters: As a solution to the crisis, Shapiro advocates for a “Great Housing Reset” to shift the focus from housing as a speculative asset to affordable shelter. It includes gradually phasing out mortgage interest deductions and capping capital gains exclusions for high-income earners on primary residences, eliminating 1031 exchanges for residential investment properties, and linking federal infrastructure funding to local zoning reforms that encourage multifamily housing. Furthermore, he suggests redirecting federal support from homeowners to renters through universal housing vouchers and renter equity programs, believing these changes would lead to a “soft landing” for housing prices and a more equitable, accessible housing market.

Price Action: Here is a list of some real estate and housing exchange-traded funds that investors could consider as a play on the evolving housing demand. ETFs YTD Performance One Year Performance SPDR S&P Homeb buil ders ETF XHB -4.85% -0.06% Vanguard Real Estate Index Fund ETF VNQ 0.23% 6.65% Schwab US REIT ETF SCHH 0.62% 6.12% Real Estate Select Sector SPDR Fund XLRE 2.06% 8.10% iShares US Real Estate ETF IYR 1.99% 8.28% iShares Core US REIT ETF USRT -0.95% 5.99% DFA Dimensional Global Real Estate ETF DFGR 5.12% 7.58% SPDR Dow Jones REIT ETF RWR -2.14% 3.79% The SPDR S&P 500 ETF Trust SPY and Invesco QQQ Trust ETF QQQ , which track the S&P 500 index and Nasdaq 100 index, respectively, ended higher on Friday. The SPY was up 0.50% at $614.91, while the QQQ advanced 0.34% to $548.09, according to Benzinga Pro data. After hitting a fresh record on Friday, the futures of the S&P 500, Nasdaq 100, and Dow Jones indices were trading higher on Monday. Read Next: Microsoft Is ‘Playing Chess, And Others Are Playing Checkers:’ Dan Ives Says MSFT Could Be A $5 Tril lion Company In 18 Months Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors. Photo courtesy: Shutterstock Stock Score Locked: Want to See it? Benzinga Rankings give you vital metrics on any stock – anytime. © 2025 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.