10 levers the Trump Admin may pull to attack housing affordability

The Trump Administration is signaling that it intends to attack the affordability crisis and chronic undersupply from multiple angles — talking openly about declaring a “national housing emergency,” freeing up federal land, leaning on localities to permit faster and denser, trimming closing costs, exploring rate-transfer ideas, boosting construction capacity, revisiting mortgage product design (including multigenerational mortgages), lowering MBS spreads via capital and liquidity moves, and potentially releasing Fannie Mae and Freddie Mac from conservatorship.

The goal? To “make housing great again” and even usher in what some advisors are calling a “new golden age” for U.S. housing. Below are 10 major levers being discussed, what each could do in practice, and the biggest questions to watch.

The “housing emergency” frame — using the bully pulpit to move states and cities

Treasury Secretary Scott Bessent has said the administration is weighing a national housing emergency this fall to spotlight affordability and supply. His line: “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.” The federal government can’t rewrite local zoning, but the bully pulpit plus carrots (grants, tax credits, fee waivers) can push reform at the city/state level.

Why it matters: Most housing policy (zoning, permitting, fees) is local. A White House megaphone can still accelerate change, especially if tied to funding or regulatory flexibility.

“Unlock the Dirt”: Auction Some Federal Land for Housing (and How To Buy It)

According to the American Enterprise Institute’s (AEI) Edward Pinto, AEI has proposed auctioning roughly 850 square miles of federally owned land for housing, an estimated 3 million single-family sites, as part of “Homesteading 2.0.” These parcels are not all in one place; they’re largely BLM tracts near fast-growing Western metros (e.g., Las Vegas Valley/Clark County, Nev.)

Recent BLM sale examples:

• Mar 2025—Las Vegas Valley: BLM sold 8 parcels (41.85 acres) via SNPLMA for
• $16.6M, above appraisal.
• Dec 2024—Clark County, Nev.: BLM proposed 11 parcels (89.35 acres) via modified competitive sale, auctioned online.
• Oct 2024—Affordable housing carve-out: BLM conveyed 20 acres to Clark County at
• $100/acre for ~210 homes.

How to buy at auction:

1. Notice: Published in the Federal Register + BLM site.
2. Bidding: Competitive/modified competitive, often via EnergyNet.com.
3. Due diligence: Buyers must comply with access, utilities, environmental checks.
4. Closing: High bidder pays; BLM issues patent/deed.

“Nobody’s living there today. That’s something the federal government could do to add supply,” Pinto said.

Fast-track permitting and light-touch zoning

• Houston: The largest U.S. city without zoning has a new pilot that aims to approve SFH permits in less than 30 days.
• New Rochelle, New York: Form-based code + 90-day approvals have seen 4,500 units built and 6,500 more planned, with minimal rent growth.
• Portland, Ore.: New Residential Infill Project (RIP) and the Residential Infill Project Part 2 (RIP2) legalized middle housing. According to a Portland government site, “The City permitted over 1,400 Accessory Dwelling Units (ADUs) and middle-housing units between Aug.1, 2021, and June 30, 2024, in single-dwelling zones. Middle housing is now the most prominent housing type being built in single-dwelling zones, with the majority of production happening in inner east Portland.”

Lesson: Lighter zoning + faster approvals = more units. The federal role: amplify, incentivize, and reward reform cities.

Lower closing costs — PMI, title, credit, junk fees

Closing costs often average $6,000+ and rose 36% between 2021–2023. The Trump administration has signaled interest in trimming “junk fees.”

PMI example:

• PMI = 1.85% of loan amount annually.
  • On a $500,000 loan, PMI = $9,250/year, or $771/month. P&I at 6.50% = $3,160/mo → with PMI = ~$3,931/mo.
  • Eliminating PMI = monthly savings of $771 until 20% equity.

Other junk fees under scrutiny: appraisal, underwriting, credit reports, title add-ons, courier/ doc prep. The CFPB has flagged these as unnecessary or inflated.

Product design levers — 40-year terms, ARMs and piggybacks

• 40-Year Mortgages: The FHA already uses 40-year mods to aid distressed borrowers; some non-QM lenders offer 40-year fixed/IO today.
• ARMs: Currently about 8% to 10% of new apps. Modern ARMs (5/6, 7/6, 10/6) are fully underwritten with caps.
• 80/10/10 Piggybacks: Return of a 1990s classic — widely offered now to avoid PMI and jumbo caps.

Mortgages for multigenerational households

As more families live under one roof, lenders are adapting:

• Fannie Mae HomeReady®: Allows income from household members not on the loan to help qualify.
• Freddie Mac Home Possible®: Considers non-borrower household income as a compensating factor.
• FHA Loans: Permit non-occupying co-borrowers, like parents helping children, to strengthen applications.
• VA Loans: Allow extended family co-residency as long as one borrower is eligible and occupies.
• Portfolio/Jumbo lenders: Market “multigenerational” products with flexible DTI and occupancy.
• ADU income: Fannie/Freddie allow rental income from ADUs to count toward qualifying.

Why it matters: Pew Research reports 18% of Americans now live in multigenerational households. With affordability stretched, pooling family resources is often the only path to ownership—and lenders are finally adjusting products to reflect today’s reality.

Unlocking the lock-in

Millions are locked in by sub-4% rates. Options under review:

• Porting: Seller carries old rate to new home.
• Assumable conventional loans: Buyer takes over seller’s balance and rate.Blended:
• Assume part of seller’s loan, add new second for balance.
• Agency support: GSEs create standardized assumption/porting programs. (Barron’s: complex, but “not impossible” if agencies and investors align.)

Construction cost levers — tariff relief on materials

The Treasury has floated tariff exclusions for steel, aluminum, copper, and possibly lumber. Lowering input costs could nudge projects into feasibility and expand supply.

Narrowing mortgage spreads — what a 40 bp drop looks like

As of Sept 4, 2025, the Freddie Mac PMMS 30-year fixed rate = 6.50%.

A 40 basis point drop → ~6.10%. Even 25–40 bps often flips borrowers from ineligible to eligible.

Why: Shrinking the MBS–Treasury spread can unlock thousands of approvals without the Fed cutting the Fed Funds rate.

Fannie Mae and Freddie Mac — exit conservatorship without raising rates?

The administration plans to release the GSEs with capital + IPO.

• Pro argument: Liquidity + credit expansion, possible sovereign wealth fund seed.
• Skeptic’s view: Rates could rise 25–90 bps without explicit backstop.
• Counter-argument (evidence): Urban Institute & AEI say rates are unlikely to rise significantly if capital is adequate + implicit/explicit backing remains. Many economists note that investor confidence hinges on clarity, not conservatorship status.

The administration is attacking the housing affordability crisis with 10 bold levers, from freeing land and fast-tracking permits to cutting junk fees, exploring multigenerational mortgage options, revisiting product design, testing portability, reducing tariffs, narrowing spreads, and restructuring the GSEs.

How quickly will these changes deliver a “new golden age” for housing? It’s too soon to tell. But one thing is certain: the White House has put housing at the center of the economic agenda, calling it a crisis that demands urgent action and promising to “make housing great again.”

Tim and Julie Harris are award-winning real estate coaches with over 30 years of experience. They host the nation’s #1 daily podcast for real estate professionals, “Real Estate Coaching Radio,” and are best-selling authors of “HARRIS Rules.”
This column does not necessarily reflect the opinion of HousingWire’s editorial department and its owners.
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