President’s plan combines deregulation, federal land use, and mortgage relief to slash costs as Americans spend record shares of income on housing.
By yourNEWS Media Newsroom
WASHINGTON—President Donald Trump is finalizing a landmark housing policy designed to spur the construction of up to 12 million new homes over the next decade, Just the News reported, as the nation grapples with a persistent affordability crisis that has pushed homeownership out of reach for millions.
“The President has the opportunity to create possibly the largest housing boom in U.S. history,” Morris Davis, the former White House Council of Economic Advisers’ Chief Housing Economist, told Just the News. “He has the tools, the personality, and the plans to accomplish it.”
The U.S. faces a severe housing shortage, with estimates ranging from 3 to 5 million homes needed nationwide and a deficit of 7.1 million affordable rental units for low-income households. The shortage has driven home prices to record highs, with one-third of households spending more than 30% of their income on housing. High mortgage rates (6–7%) and soaring rents have frozen the market, pushing existing-home sales to 30-year lows and delaying first-time buyers until a median age of 40.
A Two-Pronged Strategy: Lower Rates and Mass Construction
Davis outlined the administration’s dual approach:
- Demand-Side Relief: “The Fed has to lower interest rates,” Davis said. With a new Fed chairman expected to cut rates, mortgage costs could ease, reviving buyer activity.
- Supply-Side Revolution: Trump’s plan aims to build 12 million homes in 10 years, making housing “attainable for young families.”
Trump Blames Immigration for Housing Crunch
The president has repeatedly tied the crisis to record immigration, arguing that the “colossal border invasion” under Biden inflated demand and strained inventory. With the illegal immigrant population near 14 million—potentially occupying 3.5 million homes—Trump claims his deportation policies will “free up inventory for Americans.”
“Most Aggressive Housing Reforms in U.S. History”
In a December 17 address, Trump teased “the most aggressive housing reform plans in American history” for 2026, including:
- Federal Land for Housing: Repurposing government-owned land for affordable developments.
- Regulatory Slash-and-Burn: Expanding his “10-out, 1-in” deregulation rule (now requiring 10 old regulations cut for every new one) to fast-track construction.
- Permitting Overhaul: The SPEED Act (H.R. 4776), passed December 18, streamlines NEPA reviews to accelerate infrastructure and housing projects.
Regulations Add $100K+ to Home Costs
A 2021 NAHB study found that government regulations—permitting delays, impact fees, and taxes—add $93,870 (now over $100K with inflation) to the cost of a new home. “That’s why no one can afford a house,” Davis said.
Echoes of the Post-WWII Boom
Trump’s push mirrors the G.I. Bill (1944), which fueled a housing explosion by offering low-interest, no-down-payment loans to veterans. The policy doubled homeownership rates and built the modern middle class—a model Trump aims to replicate.
Key Documents & Data:
- Zillow: 4.7M Home Deficit (2025)
- Goldman Sachs: 3–5M Home Shortage
- NAHB: $100K+ in Regulatory Costs
- SPEED Act (Permitting Reform)
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