The Trump administration could declare a national housing emergency this fall, Treasury Secretary Scott Bessent told the Washington Examiner on Monday. If President Donald Trump declares a national housing emergency, the federal government would have extra powers to act quickly.
If the Federal Reserve lowers interest rates, Bessent acknowledged that it could help reduce the cost of buying homes. However, he admits that just cutting rates isn’t enough.
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“We’re trying to figure out what we can do,” Bessent told the Examiner. “And we don’t want to step into the business of states, counties and municipal governments.”
Potential measures under review
Bessent didn’t name specific actions Trump will take but suggested the administration needs to do something to lower housing costs. Bessent said one idea being studied is making local building and zoning laws more uniform across the country. They’re also exploring ways to reduce closing costs, the fees people pay when they close on a home, which can amount to thousands of dollars.
Bessent told the Washington Examiner that Trump might lower or eliminate tariffs on some construction materials. This move would make it cheaper to build homes, since materials would cost less. This could also increase the supply of homes, lowering prices due to more availability.
Affordability remains a top concern
The housing affordability talks are happening because many people in the U.S. are finding it difficult to pay for a place to live. According to Realtor.com, buying a home is almost as unaffordable as it’s been at any time in the last 40 years when you compare home prices to how much people earn. Nearly 50% of people who rent are “cost burdened,” meaning they have to spend a large chunk of their income – more than 30% – on housing.
According to the Examiner, Bessent is very confident the economy will do well in the next year. However, there’s still uncertainty about how new tariffs might affect prices for Americans.
“I think we’re going to see a big economic pickup in 2026,” Bessent said.
