The housing market has undergone a revolutionary transformation since the 2020 pandemic. Demand outpaced supply, causing prices to skyrocket. And they haven’t stopped rising since. This is why Donald Trump has spoken of plans that could be implemented, which, according to the US president, would be the “most ambitious housing reforms” in the country’s history. Although the White House hasn’t released further details about this housing reform for 2026, the director of the National Economic Council, Kevin Hassett, has said: “We can also incentivize states to make it easier to build new homes.”
Critics argue that focusing on reducing borrowing costs and restricting certain buyers can only offer marginal relief
The fact is that some experts warn that Trump’s housing plan addresses the symptoms, not the root causes, of high housing prices. Furthermore, critics argue that focusing on reducing borrowing costs and restricting certain buyers can only offer marginal relief without addressing the structural problems in the housing market. In any case, despite rising housing prices, experts point out that the real problem is the chronic housing shortage, particularly of homes for first-time buyers.
Mortgage rates are influenced by overall economic conditions
Based on the data we have, after a surge in rental prices in many cities a few years ago, renters got some relief in 2025 as that growth slowed, according to Bank of America. The fact is, mortgage rates are influenced by overall economic conditions, so simply lowering them might not significantly reduce monthly housing costs in the long run. In fact, experts warn Trump’s housing plan addresses symptoms, not the root causes of high home prices.
If the job market weakens further and buyers feel less secure in their jobs
We could say it’s all a chain, and what happens with chains is that if one thing fails or malfunctions, it ends up affecting the others. Therefore, if the job market weakens further and buyers feel less secure in their jobs, they may be less willing to buy a house, which would consequently affect sales. Housing expert Janneke Ratcliffe emphasizes that increasing supply is essential, but it takes time, as builders must adapt to zoning laws and land-use regulations.
Donald Trump announced two key elements of his housing plan
Going into detail, Kush Desai, Deputy Press Secretary at the White House, stated in a press release with CNN that homeownership was a “top priority on President Trump’s affordability agenda.” Regarding this, in January Donald Trump announced two key elements of his housing plan: a proposal to allocate approximately $200 billion to purchases of government-backed mortgage-backed securities to lower mortgage rates, and a plan to restrict purchases of single-family homes by large institutional investors. The fact is, as experts point out, without an expansion of the housing stock, financial incentives could simply increase demand and drive prices upward. For his part, Desai added: “The American people can expect more news. Stay tuned!”
It is designed to reduce financing costs for buyers, while restrictions help make housing more affordable for citizens
To this we can add the fact that in recent months, the Trump administration has considered several ideas to facilitate home purchases, including a 50-year mortgage plan and the possibility of mortgage transfers. In short, there are ideas and proposals, but nothing official has been announced yet. As for the bond-buying initiative, it is designed to reduce financing costs for buyers, while restrictions help make housing more affordable for citizens. We must wait to see how the year continues and when projects related to the housing problem in the United States will begin to be implemented.