Trump’s Approach to Housing Crisis: Achievements and Challenges
In January 2025, President Donald Trump returned to the White House, focusing on America’s housing affordability crisis. He proposed deregulation, new home construction, and mass deportations of undocumented immigrants to expand housing supply and lower costs.
Trump had promised to expand homeownership during his second term, offering millions of families a chance to enter the property market despite challenges like rising home prices, high mortgage rates, and increasing homeowners insurance premiums and property taxes. In a September 2025 HUD event, he emphasized his experience as a real estate developer, asserting his capability to help Americans own homes.
In the months since his return, Trump’s housing agenda has seen mixed results. The administration tackled deregulation, immigration enforcement, and restrained institutional investors, but the expected surge in homebuilding remains elusive. Although market inventory increased slightly, the growth stemmed more from decreased demand and slower sales rather than new construction. Single-family housing starts hit a low not seen in over three years.
Newsweek reached out to the White House for comment.
Inventory at the Beginning of Trump’s Term
The housing market grapples with years of underbuilding, creating a shortage of 2.8 to 10 million units. Despite recovery from COVID-19 lows, inventory struggled to return to pre-pandemic levels. Redfin reported 1,400,188 active listings in January 2025, increasing modestly to 1,473,056 by December. However, new listings fell, with 383,208 homes appearing in January as opposed to 376,281 in December.
Construction showed weak momentum. Initial reports indicated 1.5 million building permits, 1.4 million housing starts, and 1.6 million completions. By year-end, rates barely changed, showing only minor improvements.
Recent Inventory Changes
Trump’s first year saw modest inventory improvements. More properties appeared on the market, yet their rise resulted from longer sales periods rather than increased supply. High mortgage rates hampered buyer interest, leaving listings to accumulate in the South and West. Areas like the Northeast and Midwest continued facing acute shortages.
July figures reflected slowing progress. The number of homes for sale slightly declined, and construction data provided little optimism. Single-family housing starts fell significantly, with total housing starts showing similar declines.
Why Builders Face Challenges
Homebuilders grapple with the paradox of a housing shortage alongside unsold inventory, impacting profits. Elevated construction costs and affordability challenges persist, with mortgage rates deterring buyers and rising material costs increasing production expenses.
NAHB’s Chairman Bill Owens highlighted the hurdles builders face, with higher mortgage rates sidelining buyers and escalating material costs complicating construction efforts.
Builder confidence remains low, influenced by economic uncertainty and high mortgage rates. This environment restricts progress in expanding housing supply meaningfully.
Looking Forward
Despite mortgage rates dominating discussions, supply is crucial for affordability. Expanding available homes could relieve price pressures, even amid elevated borrowing costs.
Deregulatory measures offer some relief, yet financing, labor, and cost challenges could delay production. Weak buyers’ affordability also impacts builders’ confidence in starting profitable projects.
Inventory might improve in certain areas, but increased unsold listings won’t resolve the broader housing shortage. Nearly two years into Trump’s second term, existing inventory is higher, but new construction struggles to match demand, and affordability challenges remain significant.
For further information, contact Newsweek editors Ben Kelly and Dave Siminoff.