Key Points:
- Trump’s housing reforms are stalling due to internal and external disagreements.
- The President worries that lowering prices will hurt existing homeowners’ property values.
- Polls show voters believe Trump’s policies are making life more expensive.
- Proposals like credit caps and investor bans have been rejected or lack power.
President Donald Trump’s promise to fix America’s housing crisis is hitting a wall just weeks after he announced it. With crucial midterm elections coming up in November, the White House is scrambling to lower costs for voters. However, a mix of mixed messages, industry pushback, and the President’s own doubts has left the aggressive plans stuck in neutral.
Six weeks ago, Trump promised historic reforms. Today, mortgage rates are inching up, and the administration is struggling to implement new policies. A major hurdle is Trump’s own hesitation.
At a recent cabinet meeting, he admitted he doesn’t want to lower housing costs if it means hurting the property value of current homeowners. He told his team he wouldn’t “destroy the value of their homes so somebody who didn’t work very hard can buy a home.”
This inaction is frustrating voters. Recent polls show that over half of registered voters feel Trump’s policies have made life less affordable. Since the pandemic, home prices have jumped more than 50%, and the average age of a first-time buyer has climbed to a record 40 years old.
The White House has floated several ideas, but few have stuck. A proposal to cap credit card interest rates at 10% was quickly dismissed by House Speaker Mike Johnson and banking CEO Jamie Dimon.
Another plan to let workers use tax-free accounts for down payments was publicly rejected by Trump himself, who told reporters he wasn’t a “huge fan.” Even an executive order meant to stop Wall Street from buying starter homes is seen by experts as largely symbolic without help from Congress.
The only policy gaining traction is a plan for Fannie Mae and Freddie Mac to buy $200 billion in mortgage bonds. However, housing experts warn this might only lower rates by a tiny 0.25%, which isn’t enough to help most families. As the election nears, the administration is running out of time to deliver on its affordability promises.
