The Trump administration is finalising an executive order aimed at easing housing costs for Americans, as rising prices and limited supply continue to affect access to homeownership. The planned action is expected to be unveiled later this month when President Donald Trump addresses the World Economic Forum in Davos, Switzerland.
According to housing officials and sources close to the discussions, the White House is prioritising initiatives that would appeal to younger and first-time home buyers, a key voting bloc that supported Trump during the 2024 election. These efforts form part of a wider affordability agenda that the administration hopes will resonate with the public ahead of further legislative negotiations.
Focus on Expanding Access for First-Time Buyers
One of the central themes of the expected executive order is to make it easier for first-time buyers to enter the property market. Several policy ideas have been floated, ranging from allowing buyers to use their 401(k) or 529 savings accounts for down payments without tax penalties, to introducing longer-term mortgage options.
According to The Washington Post, David Dworkin, president and CEO of the National Housing Conference, stated that easing restrictions on retirement account withdrawals could have “a bigger impact than any down payment program ever proposed”. While some economists have warned that a 50-year mortgage may increase total borrowing costs due to extended interest payments, the administration views such measures as tools to improve monthly affordability.
The White House is also reportedly considering assumable mortgages and portable mortgages, allowing buyers to either take over sellers’ existing mortgages or carry their own loan terms to new properties. These mechanisms are seen as a way to increase market fluidity at a time when many homeowners are reluctant to sell due to high mortgage rates.
Institutional Investment and Supply-Side Reforms under Review
The executive order is also likely to include policies designed to curb institutional investment in the single-family housing market. On Truth Social, Trump announced his intention to push for a ban on such investments, arguing that it would help individual buyers compete more fairly for limited housing stock.
According to The Washington Post, Bill Pulte, head of the Federal Housing Finance Agency and a close ally of Trump, confirmed that dozens of ideas were under review, with a select few to be announced in Davos. These may also include adjustments to capital gains tax rules and steps to allow Fannie Mae and Freddie Mac to begin purchasing mortgage bonds using roughly $200 billion in reserves, a move expected to reduce mortgage rates incrementally.
Builders, meanwhile, have been involved in discussions to reduce regulatory burdens on housing development. Jim Tobin, president of the National Association of Home Builders, said that the administration has been considering ways to cut environmental regulations, energy codes and permitting constraints that slow the process of converting land into residential use.
While the final language of the executive order remains under development, White House officials believe housing policy could prove pivotal in maintaining public support. Internal polling, according to a GOP strategist cited by The Washington Post, indicates that young voters strongly associate affordability with housing, reinforcing the political urgency of these initiatives.
