During a Cabinet meeting, Trump openly rejected the idea of policies to reduce housing costs, arguing that rising home values protect Americans who already own property.
“I don’t want to drive housing prices down,” Trump said. “I want to drive housing prices up for people that own their homes.”
It’s a stance that puts him at odds with many economists, housing advocates, real estate professionals, and local officials who argue the country’s affordability crisis is being fueled by one core problem: not enough homes are being built.
For millions of younger Americans and renters trying to buy their first home, Trump’s comments landed like a warning. For many older homeowners, it sounded like reassurance.
A Strategy Built Around Homeowners
Trump’s approach may be politically calculated. In 2024, about 81% of his voters were homeowners, according to AP VoteCast data. Many are already locked into low mortgage rates from years ago, or own their homes outright, making them far less sensitive to rising prices than first-time buyers.
That matters heading into the November midterm elections, where turnout tends to skew older. Political analysts say Trump may be betting that protecting home equity will energize that reliable voting bloc. But the tradeoff could be steep.
Republican strategist Brent Buchanan of polling firm Cygnal warned that younger voters under 40 were key to Trump’s 2024 win. If they believe Trump is siding with baby boomers at their expense, Buchanan said, Republicans could face backlash.
Younger Buyers Feel Locked Out
The housing crunch is already changing daily life in states like Colorado. As reported by NBC Washington, Booker Lightman, a 30-year-old software engineer in Highlands Ranch, said he and his wife were able to buy a home, but rising prices and limited construction are forcing others to leave.
“There’s just not enough housing supply,” Lightman said.
Real estate agent Shay Hata, who works in the Chicago and Denver markets, said inventory is so tight that suburban homes often draw five to 20 offers. She described the situation as discouraging, especially for buyers who can’t compete in bidding wars.
In her view, more new construction could ease the pressure. Some builders even offer discounted mortgage rates through preferred lenders, helping buyers who are otherwise priced out.
Construction Is Falling, Not Rising
Despite constant talk about the need for more housing, the numbers show the opposite direction.
Single-family home building permits have dropped 9.4% over the past year, falling to an annual pace of 876,000, according to the U.S. Census Bureau.
That decline comes as home prices continue to rise faster than incomes, making it harder for families to save for down payments or to upgrade to larger homes.
Trump’s Mixed Signals on Housing
Trump hasn’t always rejected boosting supply.
During the 2024 campaign, his team promoted ideas such as tax breaks for buyers, easing building regulations, opening federal land for housing Development, and lowering mortgage rates.
As recently as October, Trump even urged major builders to ramp up production, posting online that they were “sitting on 2 million empty lots.”
But now, his tone has shifted sharply. Instead of focusing on construction, Trump has leaned heavily on the Federal Reserve, pressuring it to cut interest rates to reduce mortgage costs.
He has also floated a proposal to ban large financial institutions from buying up homes, which has drawn bipartisan interest.
The Bigger Risk: Prices Could Rise Even Faster
Housing experts warn Trump’s strategy may backfire economically. If the economy grows as Trump promises, demand for homes could rise even faster, driving prices up further.
Edward Pinto, a senior fellow at the American Enterprise Institute, said the U.S. would need to increase single-family construction by 50% to 100% over the next three years just to keep price growth flat.
“It’s very hard to crater home prices,” Pinto said, suggesting Trump’s fears of a major housing decline may be exaggerated.
For now, Trump’s message is unmistakable: homeownership is an investment worth protecting. But for Americans still trying to buy in, that promise may feel like the door is being shut in their face.