On January 22, 2025, President Donald J. Trump signed a Presidential Memorandum, including housing affordability reform. The goal is to deliver emergency price relief to American families, significantly focusing on reducing housing costs and expanding the housing supply.
1. Reducing Regulatory Burdens: The memorandum directs federal agencies to identify and eliminate regulations that unnecessarily increase the cost of housing construction. The administration aims to lower construction costs by streamlining these regulations, making homes more affordable.
2. Expanding Housing Supply: Part of this housing affordability reform addresses the shortage of available housing. The memorandum emphasizes the need to increase the housing supply. This may involve incentivizing the development of new housing projects and encouraging innovative construction methods to expedite building processes.
3. Promoting Efficient Land Use: The memorandum suggests reviewing land use policies to promote more efficient development practices. This could include encouraging higher-density housing in appropriate areas to maximize land use and increase the availability of affordable housing units.
4. Encouraging Private Sector Participation: The administration plans to work closely with private developers to encourage investment in affordable housing projects. This collaboration aims to leverage private sector efficiency and innovation to address housing shortages.
Will This Order Bring Down Housing Costs?
President Trump’s executive order represents a significant shift in housing policy, moving away from federal intervention and regulation toward deregulation and market-based solutions.
What Could Work:
- Cutting red tape could help increase housing supply and reduce construction costs.
- Streamlining approvals could accelerate new development projects.
- Ending specific mandates may lower home energy and appliance costs.
Potential Challenges:
- Local zoning laws, not just federal regulations, remain a major barrier to housing supply.
- High interest rates and material costs could limit how much prices fall.
- Developers may still prioritize higher-profit housing over affordable units if deregulation is not balanced with affordability measures.
Ultimately, the success of this plan will depend on how aggressively federal agencies roll back regulations and whether states and cities follow suit with their reforms.
These initiatives reflect a comprehensive approach to housing affordability reform by addressing supply and demand factors. The administration’s focus on reducing regulatory barriers and promoting efficient land use is intended to create a more favorable environment for housing development, ultimately benefiting American families seeking affordable housing options.
For more detailed information, refer to the official fact sheet released by the White House.
