What is Trump's Emergency Executive Order for Price Relief on Housing?

On January 20th, President Trump's first day in office, he declared:

"I hereby order the heads of all executive departments and agencies to deliver emergency price relief, consistent with applicable law, to the American people and increase the prosperity of the American worker. This shall include pursuing appropriate actions to lower the cost of housing and expand housing supply.."

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Let’s take a closer look at the specific actions in Trump’s emergency executive order designed to lower housing costs:

Trump’s ambitious plan aims to roll back housing costs to pre-COVID levels, targeting a 40% reduction in prices.

This equates to a massive $135,000 savings on a $300,000 home, effectively reversing the inflationary pressures that have priced many Americans out of the housing market since the pandemic.

Here’s a breakdown of each action Trump outlines:

Trump Will Reduce Housing Costs by Eliminating Specific Regulations

In a memorandum accompanying his executive order, President Trump stated:

"Many Americans are unable to purchase homes due to historically high prices, in part due to regulatory requirements that alone account for 25 percent of the cost of constructing a new home according to recent analysis."

To achieve this, Trump’s emergency executive order mandates the immediate repeal of regulatory requirements that add unnecessary costs to housing construction. These regulations will be systematically identified and removed.

Projected Housing Cost Reduction (According to Trump): 25%, or $75,000 on a $300,000 home.

Trump Will Expand the Affordable Housing Supply

The executive order tasks the Department of Housing and Urban Development (HUD) with partnering with local governments and private entities to boost the development of affordable housing.

This initiative is designed to increase the availability of housing, particularly in underserved areas, and lower prices through streamlined processes and incentivized investment.

Projected Housing Cost Reduction: 10%, or $30,000 on a $300,000 home.

Trump Will Revamp Fannie Mae and Freddie Mac Policies

Under the leadership of Bill Pulte, Fannie Mae and Freddie Mac will increase funding and loan guarantees for first-time homebuyers and low-income families.

Projected Mortgage Interest Savings: 0.5% rate reduction, or $15,000 in interest costs over the life of a $300,000 loan.

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Trump Will End Climate Regulations Affecting Housing Costs

Specific climate policies that increase energy, transportation, and construction costs are set to be revoked under this plan.

Projected Housing Cost Reduction: 1%, or $3,000 on a $300,000 home.

Trump Will Cut Administrative Costs Across Housing Programs

The executive order mandates a 20% reduction in administrative expenses within HUD and other housing-related agencies.

These savings will be redirected to affordable housing initiatives, maximizing budget efficiency.

Projected Housing Cost Reduction: 0.5%, or $1,500 on a $300,000 home.

Trump Will Create Construction Jobs by Reducing Barriers

The executive order removes labor restrictions and expedites permitting processes for housing projects, aiming to attract more workers and accelerate construction timelines.

These efforts are expected to lower housing costs by 1%, saving homebuyers $3000 on a $300,000 home.

Projected Housing Cost Reduction: 2%, or $6,000 on a $300,000 home.

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Trump Will Lower Appliance Costs by Removing Regulations

By repealing energy efficiency mandates that drive up the prices of home appliances, the administration seeks to reduce the overall cost burden on homeowners.

Projected Housing Cost Reduction: 0.5%, or $1,500 on a $300,000 home.

Trump Will Restructure HUD Programs for Efficiency

Overlapping HUD programs will be consolidated, with budgets reallocated to opportunity zones and quarterly audits ensuring funds directly benefit low-income housing projects.

Projected Housing Cost Reduction: 1%, or $3,000 on a $300,000 home.

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