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White House economists estimate the U.S. has a shortage of 10 million houses, according to a new report out Monday—and say regulatory cuts could lead to more construction to stabilize prices, increase home ownership and fuel faster economic growth.
The analysis, part of the Economic Report of the President, outlines both a political risk and a messaging opportunity for President Donald Trump, whose public approval ratings have slumped because of concerns about his tariffs, the Iran war and his unfulfilled promises to slash inflation and unleash stronger growth.
Trump signed two executive orders in March directing federal agencies to reduce housing regulatory burdens and make it easier for smaller banks to provide mortgages but he’s been slow to take other steps that would show that high housing costs are a top priority for his administration.
The White House has been trying to focus on housing and other affordability issues for months to get ready for what’s expected to be a challenging midterm season for Republicans, but it has been thrown off course by a series of global issues. In January, a speech at the World Economic Forum in Davos, Switzerland, that had been billed as focusing on housing turned into a showdown for Trump over control of Greenland.
Meanwhile, the Iran war has driven up the cost of buying homes, with average rates for 30-year mortgages jumping from just under 6% to 6.37%.
Trump also has argued in favor of keeping home prices high to protect values for existing owners. “I don’t want to drive housing prices down,” Trump told his Cabinet earlier this year. “I want to drive housing prices up for people that own their homes, and they can be assured that’s what’s going to happen.”
Read the full story from The Associated Press.
