The White House has identified a significant housing gap in the United States, estimating a shortfall of 10 million homes. This finding is part of the Economic Report of the President, released on Monday, which suggests that easing regulatory requirements could facilitate increased construction. Such measures are intended to stabilize housing prices, enhance homeownership, and stimulate economic growth.
An analysis from the White House Council of Economic Advisers highlights that if residential construction had continued at historical rates, the U.S. would have 10 million more homes. It notes that home prices have surged by 82% since 2000, while incomes have only escalated by 12%. The rising costs have become particularly concerning for younger voters, especially as mortgage rates have climbed from under 6% to approximately 6.37% amid rising inflation.
In response, President Trump signed two executive orders in March aimed at alleviating regulatory burdens on housing, though further actions to prioritize affordable housing have been slow. The administration argues that these initiatives, along with plans to purchase mortgage-backed securities, indicate a commitment to addressing housing issues.
The report also critiques the Biden administration’s green energy housing standards, claiming they contribute to increased construction costs. By reducing regulatory hurdles, estimates suggest that construction could rise by 13.2 million homes, potentially adding 1.3 percentage points to annual economic growth over the next decade and creating around 2 million jobs in manufacturing and construction.
However, extending the argument further, critics note that eliminating current standards could result in higher long-term costs for homeowners, including increased utility bills.
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