Here is Trump’s master plan.
For many Americans, buying a home feels more difficult than ever. Rising home prices, elevated mortgage rates, and a limited supply of available houses have made homeownership increasingly challenging, especially for first-time buyers.
Former Federal Housing Commissioner Frank Cassidy believes the Trump administration is taking the right approach by focusing on one goal: increasing America’s housing supply.
Speaking on Newsmax’s Saturday Report with Rita Cosby, Cassidy said President Donald Trump’s housing agenda prioritizes reducing regulations, encouraging new home construction, and expanding inventory instead of relying primarily on government subsidies.
Housing Supply Remains the Biggest Challenge
According to Cassidy, the nation’s affordability problems stem from years of underbuilding that have left demand far higher than the number of homes available.
“The fundamental problem is that America has not built enough homes,” Cassidy said.
He argued that increasing the housing supply should remain the nation’s top priority while reducing regulations that make construction slower and more expensive.
Cassidy said the nation’s housing market is out of balance because demand continues to exceed the available supply of homes. He argued that increasing construction and cutting regulations that make building more expensive and time-consuming are essential steps toward improving affordability.
Cassidy previously served as Assistant Secretary for Housing at the U.S. Department of Housing and Urban Development (HUD), where he oversaw federal housing finance programs and the Federal Housing Administration.
High Mortgage Rates Continue to Slow the Market
The housing market continues to face significant headwinds.
Average rates for a 30-year fixed mortgage recently reached approximately 6.5%, well above the historically low interest rates many homeowners secured during 2020 and 2021.
Because millions of homeowners are locked into mortgages with rates near 2% or 3%, many have little financial incentive to sell and purchase another home with today’s higher borrowing costs.
Cassidy said that trend has reduced the number of homes entering the market, placing additional upward pressure on prices.
Cassidy said many homeowners refinanced during 2020 and 2021, securing mortgage rates as low as 2% to 3%. As a result, he explained, few are motivated to sell those homes and take on today’s much higher borrowing costs. He said that reluctance has kept more homes off the market, limiting available inventory and contributing to higher home prices.
Regulations Can Increase Construction Costs
Cassidy also argued that government regulations contribute significantly to the cost of building new homes.
According to him, between 20% and 40% of construction costs can result from permitting requirements, environmental reviews, and other regulatory processes.
Cassidy argued that government regulations and permitting requirements can account for roughly 20% to 40% of the cost of building a new home. He said those added expenses are ultimately reflected in the prices paid by homebuyers, adding that the long-term solution is for the country to increase home construction.
Home Prices Continue to Reach New Highs
Even as home sales have slowed, prices have continued climbing.
The National Association of Realtors recently reported that the median U.S. home price has surpassed $440,000, setting another record.
Cassidy said the limited number of homes available remains one of the primary reasons affordability has become such a challenge for many families.
Why Some States Have Lower Housing Costs
Cassidy pointed to differences among states when discussing housing affordability.
He said states such as Texas, Florida, and several across the Southeast have generally maintained more affordable housing because local governments have encouraged residential development and allowed builders to expand inventory.
By contrast, Cassidy argued that states including California and New York have experienced higher housing costs due in part to lengthy approval processes and more restrictive building regulations.
Cassidy argued that California’s regulatory process makes residential construction especially difficult. He said developers often face lengthy environmental reviews, permitting requirements, and other administrative hurdles that can delay new housing projects for years before construction can begin.
He described those delays as creating a “bureaucratic tax” that ultimately increases the final purchase price for homebuyers.
Trump Supports Expanding Home Construction
Rather than expanding housing subsidies, Cassidy said the administration’s strategy emphasizes encouraging private-sector construction and removing barriers that discourage new development.
He also praised Trump’s support for the recently enacted 21st Century Road to Housing Act, calling it one of the most significant housing measures in recent years.
According to Cassidy, the legislation seeks to encourage additional housing development while also limiting the ability of large institutional investment firms to purchase single-family homes and convert them into rental properties.
“Homes are for families. Homes are for Americans,” Cassidy said.
He added that Trump set the direction through executive actions before Congress ultimately approved the legislation.
Local Governments Play a Critical Role
Cassidy emphasized that housing policy is largely determined at the local level.
He argued that cities and counties have the greatest influence over zoning, permitting, and development decisions that affect housing supply.
Cassidy said housing decisions are best handled by local communities rather than the federal government. He argued that cities and towns are better positioned to determine how new housing should be developed, without what he described as unnecessary direction from Washington officials.
He said communities that streamline approval processes and reduce unnecessary regulatory barriers are more likely to increase housing inventory and improve affordability over time.
The American Dream of Homeownership
Cassidy also noted that the average age of first-time homebuyers has risen to nearly 40 years old, far older than previous generations.
He said making homeownership more attainable for younger Americans should remain a national priority.
Cassidy argued that government subsidies alone cannot solve a housing shortage. Instead, he said the lasting answer is to increase the number of homes being built by reducing barriers that slow new construction and allowing builders to meet demand.
Supporters of the administration argue that increasing housing inventory, reducing construction costs, and encouraging new development could help improve affordability over the long term. Whether those efforts significantly reduce home prices will depend on a range of factors, including mortgage rates, local land-use policies, construction costs, and the pace of new homebuilding across the country.