Housing affordability has become one of the most pressing economic concerns in the United States, particularly for younger voters and middle-income households struggling to enter the property market. In response, President Donald Trump signed two executive orders on Friday designed to address rising housing costs and expand access to home ownership.
The measures focus on reducing regulatory hurdles that affect home construction and mortgage lending. According to reporting by the Associated Press, the administration hopes the changes will encourage homebuilding, expand lending from smaller banks and ultimately make it easier for Americans to purchase homes.
Federal Push to Reduce Construction Barriers
The first executive order targets what the administration describes as excessive regulatory burdens affecting residential development. According to a draft of the order obtained by the Associated Press, federal agencies will review policies that may be slowing construction or increasing building costs.
The order instructs agencies to encourage faster permitting processes at state and local levels and promote what the administration calls best practices in housing regulation. One example cited by officials involves encouraging local authorities to adopt deadlines for approving building permits, potentially within sixty days.
Environmental regulations are also a central focus of the review. The order directs the Environmental Protection Agency and the Secretary of the Army to reassess rules concerning stormwater management, wetlands protections and other water-related permitting requirements that can affect development. According to the Associated Press, the administration argues that such requirements can increase costs and delay projects.
Several federal departments, including Commerce, Housing and Urban Development, and Transportation, are also tasked with identifying programmes or regulations that may restrict residential development. The order additionally calls for reviewing energy efficiency rules linked to federal housing programs.
White House officials have argued that certain guidelines introduced during the previous administration could add thousands of dollars to construction costs. According to officials cited by the Associated Press, energy efficiency requirements within federal housing programs could increase the cost of building a home by as much as $9,000.
Despite the focus on easing development constraints, the order does not attempt to alter local zoning laws. These rules, which are typically controlled by municipal governments, play a major role in determining housing density and the types of buildings that can be constructed in suburban areas.
Changes to Mortgage Regulations and Lending Rules
The second executive order addresses the financing side of the housing market by attempting to streamline mortgage regulations and expand lending by community banks. According to the Associated Press, the directive asks the Consumer Financial Protection Bureau to revise guidelines that affect how smaller financial institutions provide home loans.
Among the measures outlined is a review of requirements under the Home Mortgage Disclosure Act. The administration intends to reduce reporting burdens for lenders, with the aim of allowing more banks to participate in mortgage lending.
White House officials argue that increasing the number of lenders competing in the mortgage market could lower borrowing costs for prospective buyers. According to the same source, the administration believes some of the regulatory changes affecting lending could begin influencing the market within months.
The announcement comes as housing affordability remains a growing concern across the country. Data from the National Association of Realtors shows that the median price of an existing home sold in February reached $398,000, a figure that is close to five times the median household income.
Mortgage costs have also played a role in limiting access to home ownership. According to the National Association of Realtors, the average rate for a 30-year mortgage stood at 6.05% in February, lower than the 6.84% recorded a year earlier but still significantly higher than the historically low rates seen during the early years of the pandemic.
