President wants to maintain current home prices, rejecting calls to increase construction to make housing, a traditional path to the middle class, more affordable.
Instead, Trump has advocated for protecting current homeowners who have seen their property values rise. This stance contradicts the recommendations of many economists, the real estate sector, local authorities, and renters, who argue that increased construction is essential to address a significant portion of the housing crisis.
“I don’t want to drive housing prices down. I want to drive housing prices up for people that own their homes, and they can be assured that’s what’s going to happen,” Trump stated to his Cabinet on January 29.
This strategy could improve the Republican president’s standing with older voters, a demographic that historically has a higher turnout in elections. The upcoming midterm elections in November will determine if Trump’s party can maintain control of the House and Senate.
“You have a lot of people that have become wealthy in the last year because their house value has gone up,” Trump remarked. “And you know, when you get the housing — when you make it too easy and too cheap to buy houses — those values come down.”
However, by focusing on older baby boomers’ housing concerns, Trump risks alienating younger voters who were instrumental in expanding his coalition in 2024 and securing his second term. This could lead to a “generational war” during the midterms, according to Brent Buchanan, whose polling firm Cygnal advises Republicans.
“The under-40 group is the most important right now — they are the ones who put Trump in the White House,” Buchanan explained. “Their desire to show up in an election or not is going to make the difference in this election. If they feel that Donald Trump is taking care of the boomers at their expense, that is going to hurt Republicans.”
The logic in appealing to older voters
According to AP VoteCast data from the 2024 presidential election, 81% of Trump’s voters were homeowners. This suggests that many of his supporters already have mortgages with low interest rates or own their homes outright, potentially diminishing the importance of housing as a key issue for them.
Older voters generally participate in elections at higher rates than younger individuals, noted Oscar Pocasangre, a senior data analyst at the liberal think tank New America who studies the age divide in U.S. politics. “However, appealing to older voters may prove to be a misguided policy if what’s needed to win is to expand the voting base,” Pocasangre commented.
Housing affordability is a significant concern for many Americans leading up to the 2026 elections, particularly for younger voters.
Booker Lightman, a 30-year-old software engineer in Highlands Ranch, Colorado, who identifies as a libertarian Republican, stated that the housing shortage has been a major issue in his state.
Lightman recently purchased a home with his wife, Alice, and while they managed the cost, he noted that the lack of new construction is forcing people to leave Colorado. “There’s just not enough housing supply,” he said.
Shay Hata, a real estate agent serving the Chicago and Denver areas, handles approximately 100 to 150 transactions annually but sees potential for much more. She described the situation in the Chicago area as having such a low inventory that most properties, especially in the suburbs, receive between five and 20 offers.
Hata suggested that new construction could improve affordability, as buyers sometimes qualify for discounted mortgage rates from builders’ preferred lenders. She characterized the current market as “very discouraging for buyers because they’re getting priced out of the market.”
However, new construction starts have declined under Trump. According to the U.S. Census Bureau, permits for building single-family homes fell by 9.4% in the 12 months leading up to October, the most recent data available, reaching an annual rate of 876,000.
Trump’s other ideas to help people buy houses
Trump has not always opposed increasing the housing supply.
During his previous term, Trump’s team proposed tax incentives for homebuyers, reduced construction regulations, allocated federal land for housing developments, and aimed to make monthly payments more manageable by lowering mortgage rates. His advisors also suggested that increased deportations of undocumented immigrants would free up housing stock.
As recently as October, Trump encouraged builders to increase construction. He posted on social media, referring to government-backed lenders, “They’re sitting on 2 Million empty lots, A RECORD. I’m asking Fannie Mae and Freddie Mac to get Big Homebuilders going and, by so doing, help restore the American Dream!”
However, more recently, he has been clear about not pursuing policies that would increase supply and decrease prices.
While in office, Trump has primarily focused on urging the Federal Reserve to lower its benchmark interest rates, believing this would make mortgages more affordable, though critics warn it could fuel inflation. Trump announced that the two mortgage companies, currently under government conservatorship, would purchase at least $100 billion in mortgages to help reduce rates.
Trump also wants Congress to allow first-time homebuyers to use funds from their 401(k) retirement accounts for down payments. However, he has rejected this idea, telling reporters he did not want people to withdraw money from the stock market due to its strong performance.
There are indications that lawmakers from both parties recognize the benefits of taking steps to increase housing supply before this year’s elections. Efforts are underway in the Senate and House to stimulate construction through incentives for zoning reform and other policies.
A fundamental challenge to housing affordability is that home prices have consistently risen faster than incomes for several years.
This makes it more difficult for individuals to save for down payments or move to larger homes. It also means that where people live increasingly serves as their primary financial asset, leaving many families appearing wealthy on paper despite struggling with monthly expenses.
Another risk for Trump is that if the economy grows as he has predicted this year, it could boost demand for housing and consequently prices, exacerbating the affordability issue, according to Edward Pinto, a senior fellow at the American Enterprise Institute, a center-right think tank.
Pinto stated that single-family home construction would need to increase by 50% to 100% over the next three years for average home price gains to remain flat, suggesting that Trump’s concerns about falling home prices are likely unfounded.
“It’s very hard to crater home prices,” Pinto commented.