Donald Trump teases “most aggressive” housing reform US has ever seen

President Donald Trump said he is planning to announce “some of the most aggressive housing reform plans in American history” next year, in an effort to address the ongoing affordability crisis.

It is not the first time that the president has promised to address the country’s housing problems, which include rising prices and soaring costs, a decades-long shortage of homes, and the restrictive local zoning keeping new construction low. 

But it is the first time that Americans are being given a deadline for at least the announcement of his proposed solution to these problems—at some undefined point in 2026.

What Has Caused The Current Crisis?

U.S. home prices skyrocketed during the pandemic, when low borrowing costs sparked a home-buying frenzy across the country and this surge in demand clashed with chronically low inventory nationwide. 

Between 2019 and 2024, median single-family home prices rose by 48 percent nationally at more than twice the rate of median income, which rose by 22 percent, according to the Joint Center for Housing Studies (JCHS) at Harvard University.

Rising home prices, combined with elevated borrowing costs, higher property taxes, homeowners association (HOA) fees, and homeowners insurance premiums, have pushed many prospective homebuyers to the sidelines of the market. In the second quarter of 2025, the U.S. homeownership rate fell to 65 percent, the lowest level since late 2019, according to the Census Bureau.

What Did Trump Say About It?

Addressing the nation from the Diplomatic Room of the White House on Wednesday, Trump played up his administration’s achievements during the last 11 months, though polls show that Americans are getting frustrated with the lack of results in bringing down prices, especially when it comes to housing.

“Our nation is strong. America is respected, and our country is back stronger than ever before. We’re poised for an economic boom the likes of which the world has never seen,” he said.

While offering no details on what might be included in his housing reform plans, Trump blamed immigrants for rising housing costs in the U.S., as he did during his 2024 presidential campaign. 

“A major factor in driving up housing costs was the colossal border invasion,” he said, accusing the Biden administration of bringing in “millions and millions of migrants” and giving them “taxpayer-funded housing” while costs increased for Americans.

Trump said during his 2024 presidential campaign that he would free housing inventory through mass deportations of illegal migrants. The White House now claims that his administration has deported more than 605,000 people and induced the so-called “self-deportation” of another 1.9 million.  

“For the first time in 50 years, we are now seeing reverse migration as migrants go back home, leaving more housing and more jobs for Americans,” Trump said on Wednesday.

While this year inventory has risen in the U.S. market, this has primarily happened because demand has dwindled as many Americans cannot afford to buy a home or think this is not a great time to buy. Home prices are still rising and mortgage rates, despite the recent cuts to interest rates by the Federal Reserve, remain historically high.

As of December 18, the average 30-year fixed-rate mortgage was 6.21 percent, down from 6.72 percent a year earlier.

Trump said on Wednesday that “mortgage payments will be coming down even further early in the new year.”

What Could Be on The Table?

While we do not know what plans Trump was referring to on Wednesday, we have some hints coming from what he has already proposed this year. 

The president has teased the idea of opening up federal land for new housing construction, making it easier to build on areas that he thinks could serve a better purpose if put to residential use. 

He has also talked of creating a 50-year mortgage, which he said would make homeownership more affordable for Americans, though the idea received so much backlash that the president seems to have shelved it for now.

The departure of current Federal Reserve Chair Jerome Powell next year might also bring good news to the president in the form of a new chief who would be more willing to slash rates, as Trump has repeatedly pushed for in 2025. Further cuts could lower mortgage rates, helping the president keep his promises.

Finally and most importantly, a new bipartisan bill tackling the housing affordability crisis just came out of committee and is expected to receive a vote in the full House soon. 

The bill, dubbed the Housing for the 21st Century Act, wants to replace the Senate’s ROAD to Housing Act passed earlier this year. It includes similar measures, including establishing a federal “best practices” framework for local zoning and land use policies while also creating “pattern books” of pre-reviewed home designs which would speed up the construction of new homes.

If everything goes according to plan and the bill is passed by both the House and the Senate, it could land on Trump’s desk by early 2026.