Trump called on mortgage giants to push big builders, but industry impact remains uncertain
President Donald Trump has reignited debate over the nation’s housing shortage, calling on Fannie Mae and Freddie Mac to spur a wave of new home construction.
In a Truth Social post, Trump accused large homebuilders of “sitting on 2 million empty lots, a record,” and likened their behavior to OPEC’s control of oil prices.
“They’re my friends, and they’re very important to the SUCCESS of our Country, but now, they can get Financing, and they have to start building Homes,” Trump said.
“I’m asking Fannie Mae and Freddie Mac to get Big Homebuilders going and, by so doing, help restore the American Dream!”
The former president’s comments come as housing inventory has rebounded from historic lows in 2022, but builders continue to face limited incentives to ramp up construction.
According to the latest Census Bureau data, there were 490,000 new houses for sale at the end of August. That's the lowest level seen this year and 1.4% below July’s estimates. Months’ supply fell to 7.4, down from 9.0 in July and 8.2 a year ago, reflecting the market’s ability to absorb excess stock.
Since taking office, Trump has made housing a central policy focus, including an executive order for emergency price relief and a campaign to pressure the Federal Reserve for lower rates.
His administration has also pushed for the privatization of Fannie Mae and Freddie Mac, which have been under federal conservatorship since the 2008 financial crisis. Federal Housing Finance Agency (FHFA) Director Bill Pulte, acting on Trump’s direction, has led significant changes at the GSEs, including board overhauls and the adoption of VantageScore 4.0.
Homebuilders pull back as buyers retreat
Despite a 10.6% rise in inventory to 2.1 million homes in August, sales have slowed, with sellers outnumbering buyers by more than 500,000, according to Redfin.
Builders have responded by slashing prices and offering incentives: 39% reported cutting prices in September, the highest since the pandemic’s end, and 65% used sales incentives, National Association of Home Builders (NAHB) data showed.
New figures from the Census Bureau and US Department of Housing and Urban Development (HUD) showed housing starts fell sharply in August, dropping to an annual rate of 1.31 million—down 8.5% from July and 6% from last year.
Despite Trump’s calls, the mechanics of how Fannie and Freddie might spur more homebuilding remain unclear. The broader issue of housing affordability and supply continues to dominate industry debate, with many experts pointing to interest rates and regulatory hurdles as key barriers.
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