President Donald Trump issued an emergency order to address the housing crisis, aiming to lower costs and increase supply. Real estate experts, while acknowledging the limitations of federal action, believe Trump's policies and pressure on the Federal Reserve could influence key economic factors affecting housing affordability.
President Donald Trump , within his first few days in office, issued an emergency order directing the heads of all executive departments and agencies to deliver emergency price relief. This relief, he emphasized, would include lowering the cost of housing and expanding supply. 'It is critical to restore purchasing power to the American family and improve our quality of life,' an executive action signed by Trump on Monday read.
The Trump administration cited regulatory requirements as a main driver why so many Americans are unable to purchase homes. In his first term, Trump reduced regulatory costs by almost $11,000 per household, the White House said in a fact sheet.Real estate experts widely agree that the housing crisis is a complex issue that the federal government cannot solve alone. They emphasize that a multifaceted approach involving multiple levels of government is essential to bring about significant change. 'Trump’s plan to cut regulatory red tape focuses on construction costs, but most housing regulations, like zoning laws and permitting, are controlled by local governments,' Redfin chief economist Daryl Fairweather told FOX Business. 'The federal government has limited authority here, so meaningful change would likely require incentivizing local governments or taking unprecedented federal actions, such as overriding local zoning laws.'Still, many experts believe Trump can exert considerable pressure on the issue to drive progress. Realtor.com chief economist Danielle Hale told FOX Business that the U.S. is facing a deficit between 2.5 million and 7.2 million homes, highlighting the urgent need to construct more housing. She said regulatory requirements, which can significantly increase building costs and act as barriers to increasing supply, are a good place to start. Hale estimated that about $90,000 of the cost of new construction is attributable to regulations and compliance. 'With new construction just over $400,000, that's a pretty hefty percentage. That suggests there's some room to address this regulation,' Hale said. 'Maybe we can take a review of these regulations and find areas where maybe we can cut back on some of the rules or fees associated with those regulations to improve the outcome and enable builders to not just build more housing, but build it more quickly and more cost effectively.' Noel Roberts, founder of real estate firm Pending, which specializes in off-market transactions, also believes that increasing supply is key to making housing affordable. 'Over the last few years, many would-be sellers have remained on the sidelines due to high rates locking them into their current mortgages,' Roberts told FOX Business, adding that he has hundreds of millions worth of off-market inventory with owners that are open to selling, but not ready to list publicly.While Roberts acknowledges that Trump 'can’t wave a wand' to solve the housing crisis, he believes his track record indicates that Trump’s policies, rhetoric, and pressure on the Federal Reserve can influence key economic levers such as lower prices and lower mortgage rates. 'If he can exert influence over the Fed to lower rates and spur economic growth, there’s a pathway to improving conditions for homebuyers,' Roberts said. Fairweather also pointed out that the federal government can influence housing affordability through mortgage policy, potentially by privatizing Fannie Mae and Freddie Mac, both of which have operated under U.S. government control since 2008, reducing mortgage fees, and easing access to mortgages to make homeownership more attainable. Trump has expressed plans to privatize the mortgage giants. Reuters contributed to this report
HOUSING ECONOMY REGULATIONS TRUMP FEDERAL GOVERNMENT MORTGAGE RATES
United States Latest News, United States Headlines
Similar News:You can also read news stories similar to this one that we have collected from other news sources.
Senator Moreno Grills Trump's Housing Nominee on Illegal Immigration and Housing CostsDuring Eric Scott Turner's confirmation hearing for Housing and Urban Development Secretary, Senator Bernie Moreno pressed him on the impact of illegal immigration and the Biden administration's policies on housing affordability. Moreno invited Turner to visit Cleveland's public housing to witness the conditions firsthand.
Read more »
Trump's Housing Choice Raises Concerns Among AdvocatesPresident-elect Trump's nomination of Scott Turner to lead the U.S. Department of Housing and Urban Development (HUD) has sparked worry among housing advocates. Turner, a former NFL player and Texas legislator, would be the first Black appointee in Trump’s second cabinet. However, concerns focus on Trump's anti-fair-housing agenda and the potential for policies similar to those implemented during his first term, which critics argue led to the displacement of families and worsened housing insecurity.
Read more »
Bucks County Nonprofit Seeks $4 Million to Create Inclusive Housing and Employment HubNext Steps Programs, a Bucks County non-profit, is raising $4 million to purchase a property and transform it into a residential and retail building for young adults with intellectual and developmental disabilities. The project aims to address the lack of housing and employment solutions for this population in Pennsylvania.
Read more »
San Francisco Seeks to Remove Financial Barriers to Office-to-Housing ConversionsSan Francisco city officials are considering new measures to incentivize the conversion of vacant office buildings into residential housing. Faced with a declining downtown economy due to remote work, they aim to address financial obstacles through exemptions from development fees and inclusionary housing requirements, as well as leveraging a new state law allowing property tax benefits for such projects.
Read more »
Voices: In Utah, the need for accessible housing is just as great as affordable housing“It’s time we prioritize affordable, accessible housing so anyone, regardless of their physical ability or age, can live with dignity,” write Kristy Chambers and Andrew Riggle.
Read more »
Housing advocates look to multigenerational living as a possible solution to Anchorage housing crunchFinding affordable housing in Anchorage is a challenge, and housing experts are looking for solutions. One idea is making it easier for people to live in multigenerational homes.
Read more »