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Housing Crisis Expert Writes to Donald Trump: 'Reviving the Market Requires Bold Solutions.'

    Mark Milam, president of Highland Mortgage and a seasoned real estate professional, has penned an open letter to President-elect Donald Trump outlining innovative solutions to address America's severe housing crisis. The industry veteran argues that conventional approaches will not suffice in reviving the market, which is experiencing a "crash landing" despite a 32% population increase since 1995.

    Milam proposes three measures: offering temporary tax incentives for investment property sales, introducing "Premium Recapture" to protect lenders from early mortgage payoffs, and simplifying Fannie Mae and Freddie Mac's loan-level price adjustments. He suggests halving the capital gains rate could unlock much-needed inventory by incentivizing individual investors who own 14.3 million of the nation's residential properties.

    Milam estimates this measure could generate $22 billion in tax revenue while increasing available housing stock, calling it a "huge win-win-win" for the country, sellers, and buyers. His proposed program would run from Q2 2025 to Q4 2026. Additionally, he recommends simplifying loan-level price adjustments by removing certain fees, which could reduce monthly payments by hundreds of dollars.

    Milam also expressed concerns about Trump's immigration policies potentially affecting construction labor, citing a study showing that 1.6 million undocumented immigrants work in the industry. He notes that similar policies under previous administrations coincided with decades-low housing starts, highlighting the need for careful consideration when addressing this issue.