President Donald Trump has advocated for reducing government regulations and streamlining approvals as a solution to the U.S. housing affordability crisis. The administration cites actions taken by the Department of Housing and Urban Development and the Federal Housing Administration as evidence of progress. However, some conservatives question whether deregulation alone can effectively address the longstanding housing crisis.
Housing affordability remains a significant concern for voters ahead of the 2026 midterm elections. While home prices have decreased from their pandemic-era highs, high mortgage rates and years of price increases have made homeownership unattainable for many.
Frank Cassidy, a former Federal Housing Commissioner, believes the administration's approach is yielding positive results. He stated that President Trump understands the housing market and has directed housing officials to operate their agencies profitably, which has led to reduced timelines for mortgage insurance approvals and a decrease in mortgage insurance premiums.
Cassidy reported that the FHA has cut closing times for single-family homes from six to twelve months down to 90 to 120 days. The administration's philosophy emphasizes increasing housing supply as a means to improve affordability.
The White House is also supporting bipartisan efforts in Congress to encourage state and local governments to revise zoning and development laws to stimulate home construction. However, some conservatives argue that simply increasing supply is insufficient to lower housing costs.
Oren Cass, co-founder of American Compass, noted the conflict between maintaining low housing prices and high home values, suggesting that reducing home values is necessary for lower prices. He supports a provision in the housing bill to prevent large institutional investors from purchasing single-family homes, as they can drive up prices.
Others, like Howard Husock from the American Enterprise Institute, argue that the focus should also be on the types of homes being built, as builders often prefer larger, more expensive homes rather than starter homes.
The ongoing debate highlights the complexities of addressing housing affordability, with various factors, including investor demand, local zoning laws, and the types of homes constructed, playing a role in the issue. The Trump administration's focus on reducing federal barriers to construction continues to be a topic of discussion as potential solutions are explored.
