By Phil Ganz
Edited by Ryan Skerritt
Donald Trump recently announced a comprehensive plan aimed at slashing the cost of new homes by up to 50%.
In his speech, Trump stated that his plan focuses on removing burdensome regulations, opening up federal land for development, and limiting mortgage access strictly to American citizens.
Here’s a breakdown of how Trump intends to make homeownership affordable again for millions of Americans.
Trump Will Eliminate Housing Regulations to Slash Costs
Trump’s proposal hinges on eliminating regulations that add significant costs to home construction. “Young people will be able to buy a home again and be a part of the American dream,” Trump said, pointing out that regulations alone add up to 30% of the cost of a new home.
By rolling back these regulations, Trump believes the price of new homes can be reduced substantially, potentially cutting overall costs by half.
If these regulations are fully removed, the average cost of a new home could decrease by $90,000 on a $300,000 home.
“We will eliminate regulations that drive up housing costs,” he explained, emphasizing that this approach could restore housing affordability for young families and first-time buyers.
Trump Will Open Federal Land for Large-Scale Housing Development
Increasing the land available for development in low-tax, low-regulation areas could further reduce housing costs by lowering land prices and making construction cheaper.
Analysts estimate that lower land costs and relaxed zoning regulations in these areas could reduce the cost of new homes by an additional 10-15%.
For a $300,000 home, this could mean savings of $30,000 to $45,000.
To further combat high housing costs, Trump has pledged to open up federal land for large-scale housing development, specifically in designated low-tax, low-regulation zones.
Trump envisions these areas as hubs for affordable home construction, allowing developers to build more cost-effective housing.
“We will open up portions of federal land for large-scale housing construction,” Trump said, noting that the policy could foster job creation and revive communities.
Trump Will Prohibit Mortgages for Illegal Immigrants
“In California, they’re passing a law where they’re going to give illegal aliens money to buy a house, but our soldiers, our veterans, are laying on the streets,” Trump remarked.
His policy seeks to prioritize Americans, particularly those who have served the country, over non-citizens when it comes to accessing housing resources.
Restricting mortgage access to U.S. citizens may have an indirect effect on lowering demand in certain areas, particularly in states with high immigrant populations.
This policy could lead to a slight decrease in competition for homes, potentially lowering prices by around 5% due to reduced demand in these areas.
Trump also highlighted the role of immigration in driving up housing costs, referencing the financial burden posed by the influx of undocumented immigrants.
“We cannot ignore the impact that the flood of 21 million illegal aliens has had on driving up housing costs,” he stated.
In contrast, Trump argued that these resources should be reserved for American citizens, particularly veterans and low-income families struggling to find affordable housing.
Trump Will Revive the American Dream of Affordable Homeownership
Trump framed his housing plan as part of a broader mission to revive the American Dream, especially for young Americans priced out of the current housing market. “Millions of Americans will take part in setting these safe and beautiful communities, reviving the frontier spirit and really…reviving the American Dream,” he explained.
In Trump’s view, the American Dream includes affordable, secure housing for all citizens—a vision he claims has been neglected by current leadership. He assured Americans that his plan will tackle the root causes of high housing costs, making homeownership feasible for future generations.
Revitalizing affordable housing projects could incentivize developers to build cost-effective homes, especially for first-time buyers. Though harder to quantify, this focus on affordable housing could contribute an additional 2-5% reduction in costs by increasing the supply of lower-cost housing options.
Doing the Math: Is Trump’s Plan Realistic?
Trump’s proposal to reduce home costs by 50% rests on ambitious regulatory cuts, opening federal land for construction, and enforcing stricter mortgage policies. These initiatives, he argues, will make homeownership attainable again and reinforce the importance of prioritizing American citizens in housing policies.
In total, Trump’s proposed changes could yield a potential cost reduction of approximately 47-55% on new homes:
- 30% reduction from eliminated regulations
- 10-15% from opening federal land
- 5% from limiting mortgage competition
- 2-5% from affordable housing incentives
If implemented in full, Trump’s plan could realistically achieve his goal of halving home prices or come very close, making homeownership significantly more accessible for many Americans.
However, the exact savings would depend on regulatory changes, federal land availability, and the degree of demand reduction in each market.
Proven Strategies to Save Thousands on Your New Home Purchase Today
Even before new national policies take effect, there are several powerful ways to save thousands when buying a home right now.
These programs provide financial relief, often covering down payments and lowering monthly payments.
Here are some top options available to homebuyers today.
Florida Hometown Heroes Program
The Florida Hometown Heroes Program offers down payment and closing cost assistance to all fulltime Florida workers who work in the communities they live in.
This program has provided tens of thousands of Floridians up to $35,000 in assistance, helping local heroes secure affordable homes.
100% FHA Loans
FHA loans with 100% financing options can help homebuyers purchase a home without a down payment, reducing the upfront cost significantly.
These loans are often ideal for first-time homebuyers who may not have enough savings for a typical down payment.
VA Loans
VA loans are designed exclusively for veterans, active-duty service members, and eligible military spouses.
With no down payment requirement, lower interest rates, and no need for private mortgage insurance, VA loans can save veterans thousands over the life of the loan.
25 Down Payment Assistance Programs in Florida
Florida offers over 25 down payment assistance programs to help first-time homebuyers with upfront costs.
These programs vary by county, but all aim to make homeownership more accessible and affordable. Check out our popular article on the 25 Down Payment Assistance Programs available in Florida to see which options may work for you.
With over 50 years of mortgage industry experience, we are here to help you achieve the American dream of owning a home. We strive to provide the best education before, during, and after you buy a home. Our advice is based on experience with Phil Ganz and Team closing over One billion dollars and helping countless families.
About Author - Phil Ganz
Phil Ganz has over 20+ years of experience in the residential financing space. With over a billion dollars of funded loans, Phil helps homebuyers configure the perfect mortgage plan. Whether it's your first home, a complex multiple-property purchase, or anything in between, Phil has the experience to help you achieve your goals.
About Editor - Ryan Skerritt
Ryan Skerritt has over 10+ years of experience in the residential financing space. With over two hundred and fifty million of funded loan volume, Ryan has the skill set to help any homebuyer configure the perfect mortgage plan.
