T
he White House is considering a potential emergency declaration that could boost the US housing supply and improve affordability. According to U.S. Treasury Secretary Scott Bessent, President Donald Trump may declare a national housing emergency this fall, which would be the first since 2008. The move could involve regulatory changes and provisions aimed at incentivizing home building.

    While an emergency declaration won't fix affordability in the short term, economists say that substantially lower mortgage rates and minimal price growth could lead to improvements within four years. The Trump administration is turning its attention to the country's housing affordability challenges, which could be good news for home builders.

    The administration is exploring ways to standardize building and zoning codes, decrease closing costs, and provide tariff exemptions for construction materials. However, implementing these plans may face hurdles, according to Realtor.com Senior Economist Joel Berner. "It remains unclear exactly what kind of emergency measures the administration could take to address housing," he said.

    Builders are in need of rate relief, with interest rates often 2-5% higher than those for consumers. The National Association of Home Builders has laid out a 10-point plan to address housing affordability, including eliminating excess regulations and making it easier for developers to finance new construction projects.

    The National Association of Realtors is continuing its advocacy efforts in D.C., pushing for practical solutions to address housing undersupply. Even if a housing emergency is declared, it will take years for affordability to return to "normal," according to a Redfin report. The report concludes that if home price growth remains at current rates and mortgage rates fall to 5.5%, costs would return to July 2018 levels by November 2030.

    Buyers shouldn't expect affordability to snap back overnight, but the trend lines point to real progress within this decade, according to Redfin senior economist Asad Khan. "If mortgage rates decline modestly, and price and income growth hold steady, the market for homebuyers could feel much different by the late 2020s."