According to Treasury Secretary Scott Bessent, the move would be a response to the ongoing housing affordability crisis in the United States, which is characterized by high home prices, elevated mortgage rates, and a severe shortage of housing supply.
A national emergency declaration would grant the President certain powers to act on the issue without the need for immediate congressional approval. While specific details on the measures being considered have not been released, officials have suggested several potential actions, including:
Standardizing building and zoning codes: The goal is to make it easier and faster to build new homes by creating more uniform regulations across states and municipalities.
Lowering closing costs: The administration is looking at ways to reduce the expenses associated with purchasing a home.
Tariff exemptions: There is consideration of temporarily lifting tariffs on certain construction materials to lower building costs.
Using federal land: The use of federal government-owned land for housing development is also being explored.
The housing market has been impacted by a variety of factors, including the "lock-in effect" where homeowners with low mortgage rates are reluctant to sell, and a persistent shortage of new construction. The administration's focus on this issue is also seen as part of a broader political strategy ahead of the 2026 midterm elections.
