White House Plan Could Build 13 Million New Homes

Owning a home just got more hopeful for millions of Americans struggling with sky-high housing costs.

White House economists released a new report showing the United States is short 10 million houses, but they've identified a clear path forward. By reducing construction regulations, the country could build up to 13.2 million new homes over the next decade.

The numbers tell a stark story. Home prices have jumped 82 percent since 2000, while incomes rose just 12 percent. For Americans under 40, buying a home has shifted from an achievable dream to an overwhelming challenge.

The report targets what it calls "the bureaucrat tax" on construction. Various regulations, including building codes, compliance costs, and zoning approval fees, add more than $100,000 to each new home. These hurdles didn't just raise prices; they slowed construction to a crawl after the 2008 financial crisis.

President Trump signed two executive orders in March directing federal agencies to reduce housing regulatory burdens and make mortgages easier to obtain from smaller banks. The administration is now considering making federal funding to states contingent on cutting some of these costly requirements.

The Ripple Effect

The impact could extend far beyond housing. White House economists estimate this construction boom could add 1.3 percentage points to annual economic growth and support two million manufacturing and construction jobs. That means factory workers building materials, truck drivers delivering supplies, and electricians wiring new neighborhoods.

Lower construction costs could also help stabilize the rental market, giving more families breathing room in their budgets. When supply increases, prices naturally moderate, making homeownership accessible to teachers, nurses, and other essential workers priced out of their own communities.

The report shows what happens when homebuilding falls behind population growth. If construction had continued at historical rates instead of stalling after 2008, Americans would have 10 million more housing options today.

Some standards being reconsidered include energy efficiency requirements for air conditioning and water heaters, which the report says could add up to $31,000 per home. While these features lower utility bills, the analysis suggests the payback period stretches across decades.

The blueprint provides a roadmap for making middle-class homeownership attainable again without waiting for mortgage rates to drop or incomes to catch up.