The White House, through the Annual Report of the Council of Economic Advisers, has outlined a series of measures aimed at addressing the ongoing housing affordability crisis in the United States. The report identifies boosting housing supply and reducing bureaucratic red tape as key strategies to alleviate the issue, noting that regulatory burdens—referred to as the 'bureaucrat tax'—add over $100,000 to the cost of a home and significantly hinder new construction [1].
The report highlights a dramatic decline in affordable new homes, citing Census New Residential Sales data which show that the share of new homes available for under $300,000 dropped from nearly 50% in 2019 to about 16% in 2024 [1]. It also points out that if homebuilding had maintained its historical pace instead of declining after 2008, there would be 10 million or more additional single-family homes available today [1].
The Trump Administration's approach, as detailed in the report, includes reducing federal regulations on homebuilders, cracking down on illegal immigration to curb demand pressures, and banning institutional investors from purchasing additional single-family homes to prioritize American homeowners. President Trump has also called on Congress to codify this ban into law [1].
On the financial side, the administration claims its policies have contributed to a half-percentage point drop in the yield on 10-year Treasury bonds, which has helped lower mortgage rates. Additionally, a plan for Fannie Mae and Freddie Mac to purchase $200 billion in mortgage bonds has been instituted, resulting in mortgage rates falling nearly a full percentage point from their January 2025 level. These measures are expected to provide substantial savings for American homebuyers, assuming house prices do not rise rapidly [1].
CONCLUSION
The White House's new measures focus on deregulation, supply expansion, and demand management to address the housing affordability crisis. With mortgage rates down and further policy actions underway, the administration anticipates improved affordability and increased access to homeownership for American families.