New economic report details plans to lower costs, expand supply, and ease mortgage burdens as affordability concerns grow.
By yourNEWS Media Newsroom
The White House has released a new economic report outlining a multi-pronged strategy to address the nation’s housing shortage, focusing on deregulation, expanded use of factory-built homes, and efforts to reduce mortgage costs.
The 2026 Economic Report of the President highlights what officials describe as a structural imbalance in the housing market, estimating a national deficit of approximately 10 million homes. According to Just the News, the plan emphasizes both immediate and long-term solutions aimed at increasing supply and improving affordability.
2026 Economic Report of the President by yourNEWS Media
Paolo Tiramani, CEO of BOXABL, said current housing production methods are outdated relative to modern demand. “We’ve got a 10 million home shortfall, and we’re operating like it’s 1946 instead of 2026,” he said.
The report attributes much of the housing shortage to reduced construction following the 2008 financial crisis, as well as regulatory and economic factors that have increased building costs. It also points to local zoning restrictions that limit higher-density housing development in many areas, constraining supply even where demand remains strong.
Rising material and labor costs have further slowed construction. Industry data cited in the report notes that prices for key inputs such as lumber, steel, and concrete have increased significantly in recent years, making it more difficult for builders to deliver affordable housing.
Former Housing and Urban Development Secretary Ben Carson said regulatory requirements account for a substantial share of construction costs. He estimated that compliance expenses can represent roughly one-quarter of a project’s budget, with additional costs tied to energy-related mandates.
“So you can imagine, if you knocked off a quarter of the cost and a good portion of that $30,000, and you had interest rates that were reasonable, you suddenly open up the housing market enormously,” Carson said.
Economists involved in the report outlined a two-phase approach to addressing the crisis. Morris A. Davis, a former chief housing economist for the White House Council of Economic Advisers, said lowering mortgage rates is critical in the short term.
“We need short-term demand relief, which is to get mortgage rates and interest rates lower,” Davis said, adding that improved affordability could encourage both first-time buyers and existing homeowners to reenter the market.
Longer-term solutions focus on increasing housing supply by streamlining construction processes and reducing regulatory barriers. Davis said modernizing building practices is essential to scaling production more efficiently.
The report also highlights the potential of manufactured and modular housing as a way to accelerate construction. Tiramani said regulatory burdens on factory-built housing can raise costs for consumers by as much as 25 to 40 percent.
Officials pointed to innovations that allow homes to be constructed in centralized facilities and transported to final locations, reducing both time and cost. Lee Zeldin said this approach could expand production capacity and improve affordability.
“Homes can easily be built in one place and then placed somewhere hundreds of miles away,” Zeldin said, describing the scalability of factory-based construction.
The administration has also taken steps aimed at lowering borrowing costs. President Donald Trump directed Fannie Mae and Freddie Mac to purchase billions of dollars in mortgage-backed securities, a move intended to reduce interest rates and monthly payments for borrowers.
Additional policy changes include efforts to ease lending requirements and reduce regulatory burdens on community banks, including adjustments to mortgage credit rules such as Ability-to-Repay standards and disclosure requirements.
Officials said the combination of regulatory reform, expanded housing production, and lower borrowing costs is intended to increase homeownership and stabilize prices as affordability concerns remain a central issue for American households.
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