President Donald Trump is considering declaring a national housing emergency to tackle the affordability crisis that has made homeownership difficult for millions of Americans, according to U.S. Treasury Secretary Scott Bessent.
Bessent told the Washington Examiner earlier this week that the announcement could come as soon as this fall.
“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,” Bessent said. “We may declare a national housing emergency in the fall.”
Why Would Trump Declare an Emergency?
The U.S. housing market is in the middle of a major affordability crisis. Home prices are high, mortgage rates remain elevated, and costs like property taxes, homeowners association fees, and insurance premiums continue to rise.
During the pandemic, demand soared as mortgage rates fell to 2-3 percent, driving home prices up more than 40 percent between 2019 and 2022, according to the Harvard Joint Center for Housing Studies.
Even though mortgage rates later jumped to 6-7 percent after the Federal Reserve raised rates to fight inflation, prices have stayed high. As of July, the median U.S. home price was $443,141, up 1.1 percent from a year earlier, according to Redfin.
Mortgage rates remain stubbornly high. For the week ending August 28, the average 30-year fixed-rate mortgage was 6.56 percent, according to Freddie Mac.
Sales are also slowing. Home purchases dropped 1.6 percent in July compared to last year, and there are about 500,000 more sellers than buyers, Redfin reported.
Meanwhile, property taxes have risen in nearly every major U.S. metro area, according to Redfin. Home insurance premiums have also climbed more than 40 percent over the past six years, LendingTree found, as natural disasters increase insurers’ costs.
What Does Declaring a Housing Emergency Do?
Since January, Trump has declared several national emergencies, including one at the southern border, an energy emergency, and an economic emergency. He has used this tool often to move his agenda forward.
A U.S. president can declare a national emergency at any time without Congress’s approval. The 1976 National Emergency Act does not clearly define what qualifies as an “emergency,” leaving that decision up to the president.
Trump’s frequent use of emergencies has been controversial. Some lawmakers and analysts argue it gives the executive branch too much power, and in certain cases—like the administration’s tariff policies—courts have pushed back.
Still, a housing emergency could carry political weight. Housing affordability has become a top issue for many voters. Before the 2024 presidential election, nearly one-third of voters told Redfin that housing costs were likely to influence their decision.
If Trump follows through, it would be the first housing-related emergency declared since the 2007-2008 mortgage crisis, and it could happen ahead of the 2026 midterms.
How Could It Help Americans?
The main driver of today’s housing problems is a lack of supply. Experts estimate the U.S. needs about 4 million more homes.
The Trump administration has already floated ideas such as using federal land for new housing and cutting regulations that slow construction.
It’s still unclear how the White House might use emergency powers to address the issue. Bessent did not share specifics but hinted at possible steps, including creating standardized building and zoning codes or lowering closing costs.
“I think everything is on the table,” Bessent said.
