Trump Advocates for Higher Home Prices, Rejects Calls for Affordable Housing Construction
In a clear stance on housing policy, US President Donald Trump has emphasized his desire for home prices to continue rising, directly opposing initiatives aimed at increasing construction to improve affordability. Speaking during a Cabinet meeting on January 29, Trump articulated his position against policies that would reduce property values, instead favoring benefits for existing homeowners, as reported by the Associated Press.
"I Want to Drive Housing Prices Up," Says Trump
"I don't want to drive housing prices down. I want to drive housing prices up for people that own their homes," Trump stated. He further argued that making houses "too easy and too cheap" to purchase would diminish their overall value, underscoring a focus on protecting homeowner investments.
Political Strategy Ahead of Midterm Elections
Trump's position is seen as a strategic move to bolster support among older voters, who are more likely to own homes and participate actively in the upcoming November midterm elections. Data from AP VoteCast reveals that 81% of Trump's voters in the 2024 election were homeowners, many benefiting from low-rate mortgages or fully paid-off properties.
However, political analysts warn that this approach could alienate younger voters, who were instrumental in expanding Trump's coalition in 2024. Brent Buchanan of the Republican-aligned polling firm Cygnal noted that voters under 40 were crucial to Trump's return to the White House and might disengage if policies are perceived as favoring baby boomers.
Younger Voters Feel Squeezed Out of Housing Market
Housing affordability remains a pressing issue, particularly for younger Americans. Booker Lightman, a 30-year-old software engineer in Colorado, highlighted the scarcity of housing supply, telling AP, "There's just not enough housing supply," which is pushing residents out of the state.
Real estate agent Shay Hata described an intensely competitive market, with many suburban properties attracting between five to 20 offers. She characterized the situation as "very discouraging for buyers" who are increasingly being priced out of the market.
Construction Slows Despite Housing Shortage
Despite the evident supply crunch, new construction has decelerated. According to the US Census Bureau, permits for single-family homes fell by 9.4% over the past year to October, dropping to an annual rate of 876,000. Economists and industry experts assert that boosting supply is essential to alleviating affordability pressures.
Mixed Signals on Housing Policy from Trump
Trump has previously supported measures to expand housing supply, including:
- Tax breaks for developers
- Deregulation of construction processes
- Opening federal land for development
As recently as October, he urged builders to increase construction, calling on Fannie Mae and Freddie Mac to assist homebuilders in "restoring the American Dream." However, in office, his focus has shifted towards pressing the Federal Reserve to cut interest rates and directing government-backed mortgage firms to purchase at least $200 billion in home loan securities to lower borrowing costs.
Risks Ahead for Prices and Voter Sentiment
Experts caution that if economic growth further elevates demand, home prices could accelerate even more rapidly. Edward Pinto of the American Enterprise Institute suggested that construction would need to increase by 50% to 100% over three years merely to stabilize prices. He remarked, "It's very hard to crater home prices," indicating that Trump's concerns about falling values might be overstated.
The ongoing debate highlights a critical tension between supporting homeowners and addressing the affordability crisis, with significant implications for voter demographics and economic stability in the coming years.
