White House Report Outlines Plan to Address U.S. Housing Shortage of 10 Million Homes
Why It Matters
The United States faces a housing shortage of 10 million homes, and a new White House economic report argues that cutting government regulation — what it calls the “bureaucrat tax” — is the most direct path to solving it. The report frames the housing crisis as both a middle-class emergency and a drag on overall economic growth, with national implications for homebuyers, builders, and taxpayers alike.
For Americans under 40, homeownership — long considered a cornerstone of middle-class life — has become increasingly out of reach. The White House Council of Economic Advisers is now making the case that deregulation, not additional government spending, is the answer.
What Happened
The White House released its annual Economic Report of the President this week, with a dedicated chapter on the nation’s housing shortage. The report, produced by staff at the White House Council of Economic Advisers, was obtained by the Associated Press ahead of its official release on Monday, April 13.
The analysis concludes that the United States would have 10 million more homes today if residential construction had continued at its historical pace rather than collapsing after the 2008 financial crisis. The report identifies government regulation as a primary driver of unaffordable construction costs, and outlines several policy levers the Trump administration could use to spur homebuilding across the country.
President Trump signed two executive orders in March directing federal agencies to reduce housing regulatory burdens and make it easier for smaller banks to provide mortgages. The White House also said plans to purchase mortgage-backed securities demonstrate the administration’s commitment to the issue.
By the Numbers
- 10 million: Estimated shortage of homes in the United States, according to White House economists.
- $100,000+: The estimated cost that various regulations add to the construction of a single home — what the report calls the “bureaucrat tax.”
- 13.2 million: Number of new homes that could potentially be built if regulatory costs were reduced, per the report’s estimates.
- 82 percent: Rise in home prices since 2000, compared to just 12 percent growth in incomes over the same period.
- 6.37 percent: Current average rate on 30-year mortgages, up from just under 6 percent, partly driven by economic uncertainty surrounding the ongoing U.S.-Israel conflict with Iran. For more on how geopolitical tensions are affecting markets, see Trump praises Palantir as stock has worst week in over a year and Iran conflict drags on.
- 1.3 percentage points: Estimated average annual boost to economic growth over the next decade if 13.2 million homes are built.
- 2 million: Manufacturing and construction jobs the report projects could be supported by a major homebuilding surge.
Zoom Out
The housing shortage is not a new problem, but its political urgency has intensified. After the COVID-19 pandemic sent inflation surging, the Federal Reserve raised interest rates aggressively, pushing mortgage costs to levels that priced millions of working Americans out of the market. The income-to-home-price gap — with prices up 82 percent since 2000 while wages grew just 12 percent — has become a defining economic grievance, especially among younger voters.
The report also takes direct aim at energy efficiency mandates introduced under the Biden administration, which it says added significant costs to new home construction. It cites a 2021 analysis by the National Association of Home Builders estimating that certain green building standards could add up to $31,000 to the price of a new home — and that it could take as many as 90 years for a buyer to recoup those costs through utility savings. In March, a federal judge in Texas sided with 15 Republican-led states who challenged the legality of those federally backed housing standards.
The question of whether rolling back Biden-era energy mandates would produce meaningful savings remains unsettled, given ongoing legal disputes and varying state-level enforcement. A recent court ruling involving a Berkshire electric utility could save it billions, underscoring how energy policy and the courts are increasingly intersecting with everyday consumer costs.
What’s Next
According to an administration official who spoke on condition of anonymity ahead of the report’s release, President Trump may consider making federal funding to state and local governments contingent on reducing zoning and construction regulations — a significant leverage point that could accelerate housing supply in high-cost markets.
The executive orders signed in March are already in effect, directing agencies to streamline mortgage access and cut regulatory red tape. The administration is expected to use the newly released report as a messaging framework ahead of upcoming economic debates, with housing affordability shaping up as a central issue heading into the next electoral cycle.
Whether Congress takes up broader housing legislation or whether the administration pursues the agenda primarily through executive action remains to be seen. For now, the report signals that the White House is positioning deregulation — not expanded government programs — as its core strategy for bringing the American dream of homeownership back within reach.