The Missing Piece: Trump’s Silence on Housing Affordability in His Congressional Address
President Donald Trump’s recent address to Congress, marking his return to the White House, has raised eyebrows among housing experts and economists. Notably absent from his over 90-minute speech was any meaningful discussion of the housing affordability crisis gripping the United States. This omission has sparked concern that the issue, once a cornerstone of his campaign promises, has fallen off the administration’s priority list.
The Weight of the Crisis
The housing affordability crisis in the U.S. has worsened in recent years, with millions of Americans priced out of homeownership. This issue became a pivotal topic during the 2024 presidential race, as voters struggled with soaring home prices and stagnant wage growth. Trump campaigned on a promise to lower home prices and increase inventory through sweeping deregulation of the construction sector and mass deportations. He also claimed that a strengthening U.S. economy would naturally drive down mortgage rates.
However, the reality on the ground tells a different story. Home prices continue to rise, and housing experts warn that Trump’s immigration policies and tariffs on imported goods—particularly softwood lumber from Canada—could further inflate construction costs and exacerbate the supply shortage. These factors have left many questioning whether the administration’s policies are aligning with its stated goals.
A Disappointing Omission
Trump’s speech touched on mortgage rates, which remain near 7%, but only in passing. He framed his efforts to reduce government waste as a means to lower these rates, yet failed to address the broader inventory and affordability crisis. For many experts, this oversight was striking. Realtor.com Senior Economist Joel Berner expressed disappointment, noting that even when discussing regulatory cuts, there was no specific mention of construction or land development—once a key part of Trump’s agenda.
The absence of concrete policy solutions has drawn criticism from both housing experts and former administration officials. Michael Negron, a former White House economic policy advisor, accused Trump of prioritizing the interests of billionaires and political donors over everyday Americans. He highlighted the lack of actionable steps to lower housing costs, healthcare expenses, or other critical needs, calling the omission a missed opportunity for bipartisan progress.
The Ripple Effect of Tariffs and Policies
One of the most pressing concerns is the potential impact of Trump’s tariffs on construction materials. The U.S. relies heavily on imports of softwood lumber from Canada, steel from Mexico, and other materials from China. Proposed tariffs on these goods could significantly inflate construction costs, deterring new building projects and worsening the housing supply shortage. Builders are already facing challenges, with confidence levels dropping to a five-month low amid high interest rates and murky demand outlooks.
Experts warn that these increased costs will ultimately be passed on to consumers, further out of reach for would-be homebuyers. While Trump has promised blanket tax cuts and deregulation, these measures are unlikely to offset the inflationary pressures caused by tariffs. The administration’s focus on fossil fuel production as a means to lower energy prices has been criticized as insufficient to address the deeper structural issues in the housing market.
Uncertainty and Future Prospects
Despite the disappointment over Trump’s silence, some experts remain cautious about writing off the administration’s potential to act. Alan Tidwell, a University of Alabama finance professor, suggests that Trump’s past rhetoric and actions indicate a possible continuation of deregulation and tax reforms aimed at boosting housing supply. However, he acknowledges that uncertainty surrounding interest rates, tariffs, and the broader economic climate poses significant challenges.
For now, the housing affordability crisis remains a pressing issue with no clear resolution in sight. As builders, economists, and everyday Americans wait for concrete solutions, the omission of this critical topic from Trump’s congressional address has only deepened concerns about the administration’s commitment to addressing it. The coming months will be crucial in determining whether the White House can reverse course and prioritize the housing needs of millions of Americans.
