Trump Does Not Address Housing Crisis During Speech To Congress
By KIMBERLEY HAAS
President Donald Trump did not bring up the housing crisis and barely mentioned mortgage rates as he addressed a joint session of Congress on Tuesday night.
Speaking before the body for the first time since retaking office, Trump highlighted his administration’s accomplishments and laid out a vision for the future, saying the golden age of America has just begun.
“We are going to create the highest quality of life, build the safest and wealthiest and healthiest and most vital communities anywhere in the world,” he said. “We are going to conquer the vast frontiers of science, and we are going to lead humanity into space and plant the American flag on the planet Mars, and even far beyond.”
Trump touted the changes that have been directed by Elon Musk and the Department of Government Efficiency, or DOGE. During this passage, he mentioned mortgage rates.
“By slashing all of the fraud, waste and theft we can find, we will defeat inflation, bring down mortgage rates, lower car payments and grocery prices, protect our seniors, and put more money in the pockets of American families,” Trump said.
Journalist Keith Griffith at Realtor.com covers housing policy, real estate news, and trends in the residential market.
Previously, his work has appeared in Business Insider, The Street, Chicago Sun-Times, New York Post, and Daily Mail.
In an article about Trump’s speech, Griffith pointed out that “Trump had little to say on the nation’s housing shortage, despite a Day 1 memorandum ordering the executive branch to deliver ’emergency price relief’ on housing costs and other key living expenses.”
Senior Economist Joel Berner noted that there was no specific mention of home construction or land development, despite Trump’s repeated focus on those topics on the campaign trail.
Berner said Trump’s tariffs, which were mentioned during the speech, will eventually impact homebuyers.
“These costs will be passed along to builders and eventually to new homebuyers,” Berner was quoted as saying.
Housing was a key issue for many voters during the Presidential election.
Former Vice President Kamala Harris had a housing plan aimed at incentivizing the building of three million rental units and starter homes while providing first-time homebuyers with $25,000 to help with the down payment on a new home.
Co-Director and Senior Fellow Edward Pinto at AEI Housing Center in Washington, DC, testified against the plan in September, saying that providing $25,000 in down payment assistance to four million first-time buyers over four years would not produce Harris’ intended results.
But Pinto recognizes the pressing need for federal, state, and municipal leaders to address housing in America.
During an AEI Housing Center webinar on Jan. 7, he said America’s housing crisis is at the point where it qualifies as a national emergency – in large part due to a severe shortage of housing – and all federal departments and agencies should be directed to act accordingly.
AEI estimates that the federal government, states, and municipalities could add 18 to 21 million homes over 10 years.
They say if the Bureau of Land Management auctioned off 800 square miles of land suitable for residential development in 10 western states, that could add four million homes. Light-touch density and livable urban villages that allow for residential development in commercial, industrial, and mixed-use zones could make up the rest.
“There’s lots of opportunities here for the federal government to provide this land and there’s lots of opportunities for state and local governments to add to supply that is much more affordable than what is being built today,” Pinto said.
After a surprise bump in December, new home sales took a turn in January thanks to persistent unaffordability and winter weather.
At the end of the month, 495,000 new homes were for sale. At the current rate, this represents a 9-month supply.
The median sales price of new houses sold was $446,300, while the average was $510,000.
Overall, the housing shortage is estimated to be between 1.5 and 5.5 million units, depending on how it is calculated.