Trump Signs Executive Order for Emergency Price Relief for the US Housing Market

President Donald Trump signed an executive order aimed at lowering regulatory costs to make housing more affordable and address broader living expenses.

Key Facts:

  • Trump’s order, dated Jan. 20, focuses on cutting regulations that add to housing construction costs.
  • The National Association of Realtors (NAR) reports the median single-family home price at $410,900 as of November 2024.
  • Mortgage rates have consistently stayed above 6 percent for more than two years, reaching 7.04 percent last week.
  • Freddie Mac estimates a shortage of 3.7 million housing units nationwide.
  • Trump’s order also targets health care costs, unemployment, and “harmful” climate policies.

The Rest of The Story:

Trump’s executive order cites steep regulatory expenses that can add as much as 25 percent to the price of a new home.

It points to what he calls “unprecedented regulatory oppression” under the previous administration, claiming Americans have paid nearly $50,000 more in costs.

Housing industry groups, including the NAR, welcomed the focus on increasing home supply and boosting affordability.

They note that first-time buyers are especially burdened by high prices and rising mortgage rates.

Experts from organizations like Redfin and Realtor.com agree that relaxing regulations could reduce some construction costs, though much of the process still depends on local zoning rules.

Trump also hinted at opening parts of federal lands for new home construction. Economists acknowledge this might help but warn that major federal lands are often located far from work centers, and environmental approvals can be lengthy.

Commentary:

Reducing regulatory costs is a reasonable first step to ease housing prices. However, the new executive order remains vague on how much relief it would bring or the exact path to achieving it.

In fact, the order addresses more than housing, labeling rising costs across the board as a “cost of living crisis.”

It also pledges to reduce health care costs, eliminate “counterproductive requirements” on home appliances, and curb climate regulations, yet details on how these goals would be met are unclear.

The Bottom Line:

Trump’s plan to cut regulations promises some housing relief, but deeper steps remain uncertain.

READ NEXT: Trump Issues Directive Requiring All US Embassies Only Fly The American Flag, Violators Will Be Fired

Americans watching their budgets will be looking for more tangible actions to bring prices down.