Tackling the Housing Affordability Crisis
Upon returning to the White House in January 2025, President Donald Trump pledged to address the housing affordability crisis. His strategy focused on deregulation, expanding home construction, and implementing mass deportations of undocumented immigrants. He argued these measures would increase housing supply and lower costs.
Promise of Expanded Homeownership
A year prior, Trump promised to enhance homeownership for millions of families, enabling them to navigate challenges such as rising home prices, high mortgage rates, and increased insurance premiums and property taxes. “I’ve been a builder all my life,” he stated at a HUD event in September 2025, expressing confidence in putting more American families into homes.
Mixed Results in Housing Agenda
Two years into Trump’s second term, progress on the housing agenda shows mixed results. The administration has acted on deregulation, immigration enforcement, and restrictions on institutional investors. However, these actions have not significantly boosted homebuilding.
The housing market witnessed modest inventory growth upon Trump’s return, stemming more from weaker demand than new home construction. Single-family housing starts have plummeted to their lowest in three years.
Market Conditions When Trump Took Office
At the onset of Trump’s second term, the housing market remained challenged by underbuilding issues, with a shortage of 2.8 to 10 million units. States like Florida and Texas led new construction recovery from pandemic lows, yet national inventory stayed below pre-pandemic levels.
In January 2025, Redfin reported 1,400,188 active listings nationwide, which rose slightly to 1,473,056 by December. New home listings decreased from 383,208 in January to 376,281 in December.
Construction Data Overview
Construction numbers showed limited progress. January 2025 recorded seasonally adjusted annual rates of 1.5 million for permits, 1.4 million for housing starts, and 1.6 million for completions. Single-family starts fell 8.4% from the previous month, totaling 993,000.
By year-end, these figures remained mostly unchanged, with 1.5 million permits, 1.4 million starts, and 1.5 million completions. Single-family starts, at 981,000, increased 4.1% month-over-month. However, promises of a construction boom remain unfulfilled.
Inventory and Housing Supply Dynamics
Availability of homes improved modestly during Trump’s initial year back in office. However, inventory growth primarily stemmed from slower sales rather than new housing supply.
High mortgage rates and rising prices have deterred buyers, increasing listings. Southern markets witnessed price growth cooling amid inventory excess, contrasting with acute shortages in the Northeast and Midwest.
Recent figures suggest region-specific inventory recovery might be stalling. In July, there were 1,462,921 homes for sale, a 0.65% decrease from the previous year.
Challenges for Homebuilders
Reduced construction reflects builders’ challenges amid housing shortages and unsold stock accumulation. Builders face elevated costs, affordability pressures, and materials price hikes.
Bill Owens of the National Association of Home Builders noted heightened mortgage rates sidelining buyers and rising material costs increasing construction expenses.
Builder sentiment increased slightly in August but remained muted due to ongoing economic uncertainties.
Future Expectations
Mortgage rates dominate discussions, yet supply is crucial for affordability. Increased housing stock offers buyers more options, reducing price pressure despite high borrowing costs.
While builders appreciate deregulation, financing, labor, and construction costs continue to hinder production. Low buyer affordability deters project launches.
Inventory might rise in the South and West due to slower sales, though unresolved demand cannot alleviate the structural shortage. The primary goal remains expanding access to homes.
Two years into Trump’s tenure, existing inventory has slightly risen, but new construction lags. The affordability crisis from the 2024 election persists, affecting potential buyers.