Sharp cuts at the Department of Housing and Urban Development are likely to upend housing markets, make homes less affordable and roil mortgage transactions, according to current and former employees, contractors and housing experts.
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The changes come amid a national housing crisis, with not enough homes and ever-rising costs. Current and former staffers, many of whom spoke on the condition of anonymity out of fear of reprisal, said it was increasingly difficult to answer how and whether HUD can carry out its core functions as the federal government’s top housing agency.
Those concerns have grown, they said, since officials from the U.S. DOGE Service, billionaire Elon Musk’s effort to slash federal spending and regulations, appeared at the department’s headquarters. HUD’s entire workforce is projected to drop by about half — from about 8,300 employees to just over 4,000 — with deep cuts in field offices nationwide, according to an internal memo obtained by The Washington Post.
Top HUD officials and staff have also briefed workers on proposals to evict undocumented immigrants from public housing and impose time limits or work requirements for other residents, according to people who heard the talks.
“Actions like this will make it harder, not easier, for many folks to afford a place to live,” said Peggy Bailey, executive vice president for policy and program development at the Center on Budget and Policy Priorities. “Make no mistake, these employees live in communities across the country — not just in D.C. — and serve in regional offices that are the first line of support for people in need of help with housing.”
Get a curated selection of 10 of our best stories in your inbox every weekend.
The changes come amid a national housing crisis, with not enough homes and ever-rising costs. Current and former staffers, many of whom spoke on the condition of anonymity out of fear of reprisal, said it was increasingly difficult to answer how and whether HUD can carry out its core functions as the federal government’s top housing agency.
Those concerns have grown, they said, since officials from the U.S. DOGE Service, billionaire Elon Musk’s effort to slash federal spending and regulations, appeared at the department’s headquarters. HUD’s entire workforce is projected to drop by about half — from about 8,300 employees to just over 4,000 — with deep cuts in field offices nationwide, according to an internal memo obtained by The Washington Post.
Top HUD officials and staff have also briefed workers on proposals to evict undocumented immigrants from public housing and impose time limits or work requirements for other residents, according to people who heard the talks.
“Actions like this will make it harder, not easier, for many folks to afford a place to live,” said Peggy Bailey, executive vice president for policy and program development at the Center on Budget and Policy Priorities. “Make no mistake, these employees live in communities across the country — not just in D.C. — and serve in regional offices that are the first line of support for people in need of help with housing.”
