Trump Administration Weighs National Housing Emergency Amid Ongoing Affordability Challenges

The Trump administration is weighing declaring a national housing crisis as housing affordability remains a challenge for many across the country. High home prices, limited supply, and rising mortgage rates have made it increasingly difficult for Americans to buy or rent homes. 

Treasury Secretary Scott Bessent signaled the possibility of a formal emergency declaration in a recent interview with the Washington Examiner. He noted the move could facilitate efforts to standardize building and zoning codes and trim closing costs. 

Housing affordability has been a central issue for the Trump administration since the campaign trail. Housing costs and affordability was referenced in an executive order issued on Inauguration Day. It called for government agencies to pursue efforts to lower the cost of housing and expand housing supply. 

However, experts caution that the federal government’s ability to influence housing affordability may be limited. 

“We know that many people are frustrated with the cost of housing and increasingly believe that the American Dream is out of reach,” Zonda chief economist Ali Wolf says. “However, the core issue is that there is not much the federal government can do to help. A lot of housing issues are local, whether it’s ‘Not in My Backyard’ residents stopping new construction, cities creating prohibitive laws, or high local land prices making it difficult to achieve an attainable home price.” 

The new-home market has been soft in 2025, with a slower-than-typical spring selling season and the high utilization of sales incentives to entice hesitant buyers off the sidelines. Signs of strain are also evident in the resale market. According to Redfin, roughly 15% of home purchase contracts were cancelled in July, the highest rate since 2017. High mortgage rates, tight inventory, and general economy uncertainty continue to restrict activity in the existing-home market. 

Industry groups such as the NAHB suggest policy reforms are necessary to unlock new housing development. NAHB chairman Buddy Hughes says increasing supply is a key to solving housing affordability challenges. 

“The administration can help spur more construction be leading deregulatory efforts at all levels of government, ensuring a secure and affordable supply chain of building materials, and enacting policies that address a lack of skilled labor in construction,” Hughes says. “A proactive agenda to bring down material, construction, and labor costs will also help bring down overall inflation, increasing the odds of interest rate reductions and lower mortgage rates for consumers.”

Reducing regulations, which account for nearly 25% of the cost of a single-family home, is a top priority for the NAHB. The association is advocating for easing zoning restrictions, allowing more accessory dwelling units, and promoting missing middle housing such as townhomes and duplexes. Refinements of zoning laws at the state and local level could also drive down costs for builders and allow more housing supply to be delivered. 

These goals are outlined in the NAHB’s 10-point plan, which has been shared with the Trump administration. 

However, the industry warns that some federal policy priorities may undermine efforts to drive down housing costs. Tariffs on imported lumber, appliances, and building materials could further drive up housing costs and exacerbate affordability challenges. 

An NAHB analysis indicates the cost of building materials has surged nearly 40% since the pandemic and tariffs could add a cost of approximately $11,000 per home.