Source: Fortune.com
Summary
The White House estimates the US has a shortage of 10 million houses, and regulatory cuts could lead to more construction, stabilizing prices, increasing home ownership, and fueling faster economic growth. President Trump signed two executive orders in March to reduce housing regulatory burdens, but has been slow to take other steps. The White House has been trying to focus on housing and affordability issues, but has been thrown off course by global issues. The Iran war has driven up the cost of buying homes, with average rates for 30-year mortgages jumping to 6.37%.
Our Reading
The numbers tell one story.
Trump’s administration claims that reducing regulatory costs could help spur construction of up to 13.2 million homes, adding 1.3 percentage points to annual economic growth over the next decade and supporting 2 million manufacturing and construction jobs. However, the report also attacks green energy housing standards introduced during the Biden administration as a factor in increasing construction costs. Trump has argued in favor of keeping home prices high to protect values for existing owners.
The report’s findings and recommendations may be seen as a way for Trump to address housing and affordability issues, which have been a top concern for voters under 40. However, it is unclear how much savings would occur from rolling back Biden-era housing standards.
Author: Evan Null
