Reading List 02/06/2026 - by Brian Potter

This week's reading list covers significant developments in construction productivity, housing markets, and energy policy, with particular attention to the shifting political landscape around renewable energy and ongoing debates about housing affordability.

Construction Productivity and Housing Markets

Goldman Sachs has released a report examining the decline in US construction productivity, identifying several key factors including lack of technological progress, land use regulation, and measurement issues. While the report correctly identifies these high-level challenges, Brian Potter notes that the overall analysis falls short of providing comprehensive solutions. The full report is available to subscribers.

A new analysis from the San Francisco Federal Reserve offers an interesting perspective on housing affordability. The study finds that house price growth has closely tracked growth in average income (not median income) from 1975 to 2024. This suggests that housing price increases may simply reflect growth in housing demand driven by income growth at the top of the distribution, rather than a fundamental affordability crisis. The implication is that questions of housing affordability may primarily be about differences in income growth between high earners and middle-income households.

In related housing news, data shows that renting is currently cheaper than owning in every major US metropolitan area. This finding adds another dimension to the ongoing debate about housing affordability and the relative merits of renting versus buying.

Several major homebuilders are reportedly working on pitching a large-scale homebuilding program to the Trump Administration, potentially on the order of one million homes. This ambitious proposal could represent a significant intervention in the housing market if implemented.

The Washington Post has published an analysis examining the size of the US housing shortage, though specific details from that piece are behind a paywall.

Energy Policy and Political Shifts

The Trump Administration has taken a notably hostile stance toward wind and solar projects. Several offshore wind projects were initially ordered to halt construction, though all have since been allowed to resume. Energy Secretary Chris Wright has described solar energy as a "parasite" on the grid. Recent reporting indicates that the administration is delaying permits for hundreds of wind and solar projects.

However, there are signs that this position may be softening. A survey commissioned by First Solar, a US solar panel manufacturer, found that 68% of Republicans, Republican-leaning independents, and Trump voters agreed with the statement "We need all forms of electricity generation, including utility solar, to be built to lower electricity costs." This suggests broader Republican support for solar energy than the administration's rhetoric might indicate.

Adding to this evidence of shifting sentiment, Katie Miller, wife of top Trump advisor Stephen Miller, recently tweeted that "Solar energy is the energy of the future." While not an official policy statement, such comments from within the administration's inner circle could signal evolving views.

A persistent challenge across both the Trump Administration and the previous Biden Administration has been the executive branch's attempts to halt energy projects it opposes. This creates significant uncertainty in the energy infrastructure development process, making it harder to build new projects across the board. To address this issue, a new bill called the FREEDOM Act has been introduced. Sponsored by a bipartisan group of representatives including Josh Harder (D-CA), Mike Lawler (R-NY), and others, the bill would establish clear timelines for issuing permits, prevent administrations from revoking permits for fully approved projects, and create a process of judicial review with clear remedies.

Industry Developments

Tesla has entered the residential solar market by beginning manufacturing of rooftop solar panels. This move represents the company's expansion beyond electric vehicles into broader energy solutions.

An innovative trend in renewable energy deployment involves installing solar PV systems on top of landfills. This approach makes use of otherwise unusable land while providing clean energy generation, representing a practical solution to multiple challenges simultaneously.

The reading list will return to its regular schedule next week, with a longer essay on US construction productivity planned for release.