Treasury Secretary Scott Bessent indicated that the Trump administration is considering declaring a national housing emergency to tackle rising housing prices and limited inventory. In an interview with the Washington Examiner, Bessent suggested that such a declaration could occur this fall.
Bessent emphasized the potential benefits of interest rate cuts by the Federal Reserve in lowering housing prices, while also acknowledging the administration's plans to explore additional measures aimed at increasing housing supply and reducing costs. He stated, “We’re trying to figure out what we can do, and we don’t want to step into the business of states, counties, and municipal governments,” indicating a desire to work collaboratively rather than overstep local governance.
Although he refrained from detailing specific executive actions that might accompany a national housing emergency, Bessent mentioned that officials are assessing options such as standardizing local building and zoning codes and decreasing closing costs.
Additionally, he raised the possibility of tariff exemptions for certain construction materials, particularly in light of the volatility in lumber costs resulting from the administration's tariff policies on Canadian imports. As reported by the National Association of Home Builders, the price of framing lumber has increased significantly over the past year, prompting a discussion on how tariff adjustments could impact overall construction costs.
Overall, Bessent’s comments reflect a proactive stance from the administration regarding housing affordability and supply, with a focus on both federal and local collaboration to address these pressing issues.