White House Plan Could Add 13 Million New Homes

Americans struggling to afford homes just got a roadmap for relief. White House economists estimate the country is short 10 million houses, but a new plan shows how smarter regulations could fix that.

The housing market has been in crisis mode since the 2008 financial crisis slowed construction to a crawl. Home prices have jumped 82 percent since 2000, while incomes rose just 12 percent, pricing millions of families out of the American dream.

The annual Economic Report of the President lays out how regulations add over $100,000 to the cost of building each home. Those expenses come from building codes, zoning approval fees, and compliance costs that pile up during construction.

President Trump signed executive orders in March directing federal agencies to reduce these regulatory burdens and make it easier for smaller banks to provide mortgages. The administration is now considering tying federal funding to states and local governments who commit to cutting construction red tape.

The Ripple Effect

If the plan works, the benefits would reach far beyond new homeowners. Building 13.2 million homes could add 1.3 percentage points to annual economic growth over the next decade.

The construction boom would support two million manufacturing and construction jobs across the country. That means more carpenters, electricians, and factory workers producing building materials finding steady work in their communities.

More housing supply would also help stabilize prices, making homeownership accessible for younger Americans who've been priced out. Voters under 40 have made housing affordability a top concern, especially after mortgage rates climbed from 6 percent to 6.37 percent recently.

The challenge now is balancing faster construction with quality standards. Some energy efficiency requirements that increase upfront costs also lower utility bills for decades, so finding the right mix will be key.

After years of watching home prices climb out of reach, millions of Americans could soon see a path back to affordable homeownership.