The Annual Report of the Council of Economic Advisers indicates that boosting the housing supply and slashing bureaucratic red tape would help address the housing affordability issue in the U.S.
“Not only does the bureaucrat tax add over $100,000 to the cost of a home; it also acts as a barrier to homes being built,” the report says.
“Under the Trump Administration, the Federal government has taken great steps to reduce the burden on homebuilders imposed by Federal regulations. Reform at the State and local levels to tackle the sources of the six-figure bureaucrat tax would greatly enhance the ability of supply to keep up with stronger demand.,” the report declares.
PROPERTY TAX BURDEN ON AMERICANS CLIMBS AS HOME VALUES DIP, NEW DATA SHOWS
“If homebuilding and the growth of the single-family housing stock had continued at their historical pace instead of falling dramatically after 2008, there would be 10 million or more additional single-family homes today,” the report states.
The document asserts that the nation “has been in the midst of a national housing affordability crunch that reached historic severity due to policies of the prior Administration.”
“Census New Residential Sales data reveal that the share of new homes available for under $300,000 fell from a little shy of 1-in-2 in 2019 to 1-in-6 in 2024,” the report says.
THESE 8 US HOUSING MARKETS FAVOR BUYERS
The document indicates that the current administration’s illegal immigration crackdown is helping to address the housing issue.
“The Trump Administration is also committed to addressing drivers of housing demand that compete with American families. First and foremost, President Trump has secured the U.S. border and has reversed the open borders policy of the Biden Administration that led to waves of illegal immigrants bidding up rents and house prices. In addition, President Trump issued an Executive Order to ban institutional investors from buying up any additional single-family homes that could otherwise go to an American homeowner and called upon Congress to codify the policy in legislation,” the report reads.
NEW JERSEY OUTPACES US HOUSING MARKET, TOPS NATION IN PRICE GROWTH
“The Trump Administration has shifted economic policy decisively away from the Biden Administration’s approach of government-driven demand and government-impaired supply to a new posture of private-sector-driven demand and healthy supply unleashed by deregulation, pro-growth tax relief, and America First trade,” the report states. “By expanding economic potential, these policies have enabled the yield on 10-year Treasury bonds to fall by half a percent, putting downward pressure on mortgage rates. President Trump also instituted a plan for Fannie Mae and Freddie Mac to buy $200 billion worth of mortgage bonds to further reduce mortgage rates. In total, mortgage rates are now nearly a full percentage point down from their January 2025 level, which promises substantial savings for the American people absent further rapid house price appreciation.”
Read the full article here
