Trump Wants to Fix the Housing Affordability Problem: Can He?

During his first few days in office, Pres. Donald Trump He issued an emergency order instructing the heads of all executive departments and agencies to “provide emergency price relief,” which includes reducing housing costs and expanding supply.

“It is imperative to return purchasing power to the American family and improve our quality of life,” the executive order signed by Trump read Monday.

The Trump administration has cited regulatory requirements as a major driver of why more Americans can’t afford homes. During his first term in office, Trump cut regulatory spending by nearly $11,000 per family, according to the White House. he said in a fact sheet.

These were the most expensive homes sold in 2024, according to Redfin

Real estate experts agree that the housing crisis is a problem that cannot be solved by the federal government alone and that many levels of government must be involved to bring about significant change.

“Trump’s plan to cut regulatory red tape focuses on construction costs, but most housing regulations, such as zoning laws and permitting, are under the control of local governments. The federal government has limited power here, so meaningful change would encourage local governments or have not seen it before.” It takes doing something unknown, Redfin Chief Economist Daryl Fairweather told FOX Business. Repeal.

Still, many experts agree that Trump could press too hard on the issue to move the needle.

Realtor.com Chief Economist Danielle Hale told FOX Business that the United States faces a shortfall of between 2.5 million and 7.2 million homes, highlighting the need to build more housing. Regulatory requirements that add significant costs to construction and hinder supply are a good place to start, he said.

For one, about $90,000 of the cost of new construction is due to code and regulatory compliance, Hale estimated.

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“For new construction over $400,000, that’s a very large percentage. It indicates that there is some room to address this regulation,” Hale said. “Perhaps we can take a review of these regulations and perhaps find areas where we can reduce some of the regulations or fees associated with these regulations to improve the results and enable builders to not only build more houses, but to build and build them faster. More cost-effectively.”

Noel Roberts, founder of Pending, a real estate firm specializing in off-market transactions, believes the key to affordable housing is increasing supply.

“Over the last few years, a lot of sellers have been out of the market because they’ve been locked in at a high level with the owners,” Roberts told FOX Business. They are open for sale, but not ready to be publicly listed.

These were the most expensive homes sold in 2024, according to Redfin

While he agrees that Trump is “unable to sway” the housing crisis, Roberts believes his track record shows that Trump’s policies, rhetoric and pressure on the Federal Reserve will affect key economic drivers such as low prices and low mortgage rates.

“There is a way to improve conditions for home buyers if they can influence the Fed to lower rates and boost economic growth,” Roberts said.

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Fairweather also noted that the federal government could influence housing affordability by privatizing Fannie Mae and Freddie Mac to make home ownership more accessible.

Trump has mentioned plans to privatize mortgage giants.

Reuters contributed to this report.