02/03/2025
Hours after his inauguration for a second term on Monday, President Donald Trump ordered the executive branch to “deliver emergency price relief” for Americans on housing costs and other key living expenses.
While the administrative order offers few specifics, it does highlight the housing crisis at a time when home affordability is at a 40-year low—and nearly half of renter households are cost burdened, spending more than 30% of their income on rent.
What this could mean:
💡 In a memorandum, he includes a bid to slash construction regulations. A 2021 National Association of Home Builders (NAHB) study found that regulations add $93,870 to the cost of a new single-family home, accounting for 23.8% of the average sales price of $397,300. “Reducing regulatory red tape for construction is a noble goal, but not one that federal lawmakers have much control over outside of incentivizing state and local governments to roll back their policies and restrictions,” says Realtor.com senior economist Joel Berner.
đź’ˇ Trump may seek to open federal land for housing. One plan he has repeatedly mentioned involves opening up portions of federal land for large-scale housing construction. However, one limitation of the plan is that in many cases, there is no significant federal land located near the places where people want to work and live.
đź’ˇ Order makes no mention of direct assistance for buyers. During the election, Kamala Harris proposed a $25,000 tax credit for homebuyers, but economists warned it could increase demand and drive up prices. Trump avoided similar plans, and his new order excludes federal subsidies for buyers.
“Absent here is any mention of supporting prospective homebuyers with funds toward their purchase, which we are in agreement with, as these subsidies would simply result in higher home prices,” says Berner.
“Bolstering home supply is the true long-term solution.”
STORY: https://rltor.cm/om3b25