White House Plan Could Bring 13 Million New Homes to US

America needs 10 million more houses, and economists just outlined how to build them.

A White House report released Monday shows the country fell drastically behind in homebuilding after the 2008 financial crisis and never caught up. If construction had continued at its historical pace, there would be 10 million more houses available today.

The analysis reveals a stark affordability crisis. Home prices have jumped 82% since 2000, while incomes rose just 12%. For years, low mortgage rates masked this gap, but when rates climbed after the pandemic, monthly payments soared and homeownership slipped out of reach for millions of Americans under 40.

The report identifies what it calls "the bureaucrat tax" as a major culprit. Building codes, compliance costs, and zoning fees add more than $100,000 to construction costs for each new home. These regulations have piled up over the past decade, making it harder and more expensive to build affordable housing.

The solution could unlock remarkable growth. By reducing regulatory costs, the report estimates builders could construct up to 13.2 million new homes over the next decade. That construction boom would support 2 million manufacturing and construction jobs while adding 1.3 percentage points to annual economic growth.

President Trump signed two executive orders in March directing federal agencies to cut housing regulations and make mortgages easier to obtain from smaller banks. The administration is now considering making federal funding to states and cities contingent on reducing local housing regulations.

The Ripple Effect

More homes mean more than just shelter. When families can afford to buy houses, entire communities benefit. Construction workers get steady employment. Local businesses gain customers. Schools welcome stable families. Young adults can start building wealth instead of watching it drain into rising rents.

The housing shortage touches nearly every American, whether they're trying to buy their first home, upgrade to accommodate a growing family, or help their adult children find affordable places to live. Each new home built creates opportunities that ripple through neighborhoods for generations.

The report also takes aim at green energy housing standards from the previous administration, arguing they add up to $31,000 per home. While more efficient appliances lower utility bills, the analysis suggests it could take 90 years for homeowners to recoup the upfront costs.

Federal courts are already weighing in. In March, a Texas judge sided with 15 states challenging the standards for federally backed housing, ruling them unlawful.

The blueprint gives policymakers a clear path forward: cut regulations, speed up approvals, and let builders build.