President Donald Trump returned to the White House with pledges to address the housing shortage and affordability crisis. However, his priorities on trade policy, immigration, and reducing the size of the federal government could unintentionally increase pressure on homeowners, despite his promises to ease the situation. While homeownership has been emphasized as a cornerstone of the American dream during his administration, housing issues have largely taken a backseat to foreign policy and border concerns in the early months of his second term. Policies such as tariffs and increased deportations could further complicate homeownership and drive up costs for American families.
Experts, including Katherine Einstein from Boston University, have voiced concerns that the administration’s focus on trade and immigration might overshadow the urgent need for affordable housing. Rising housing costs and mortgage rates have already made it harder for many to enter the market, and homelessness reached record levels in 2024. Despite blaming open borders for escalating housing costs and suggesting solutions like utilizing federal land for new developments, Trump has not implemented significant actions to directly address the affordability crisis since taking office again.
While he signed an executive order aimed at reducing housing costs, his administration has not taken meaningful steps to resolve the issue.
Furthermore, the rollback of key housing policies, such as the Affirmatively Furthering Fair Housing (AFFH) rule, suggests a retreat from pushing for affordable housing initiatives. The appointment of Scott Turner, a former NFL player, to head the Department of Housing and Urban Development (HUD) has also raised concerns about his qualifications.
The administration’s efforts to cut down the size of federal agencies, including HUD, and proposed reductions to vital programs, have cast doubt on whether the necessary resources will be available to tackle the housing crisis.
Trump’s tough immigration stance has strained the construction industry, as immigrants represent a significant portion of the workforce, while the trade war and tariffs have increased building costs.
Despite these challenges, Trump and his administration remain hopeful, with plans to identify federal land for housing development and promote the use of American-made materials. However, experts remain cautious, stressing that the success of these plans will depend on how effectively the policies are implemented.
