Last update: January 20 at 9:15 PM central time: Added specific information about emergency price reduction for homes.
What are President Trump’s housing priorities in his second term? That’s the burning question for real estate, mortgage, title, appraisal and homebuilding professionals — and the answer began to take shape on the president’s first day in office Monday. Trump came out Monday night this memorandum on his executive order to tackle inflation and housing aid:
“I hereby direct the heads of all executive departments and agencies, in accordance with applicable law, to provide emergency relief to the American people and to enhance the prosperity of the American worker. This includes taking appropriate action to: reduce the cost of housing and expand housing supply; eliminating unnecessary administrative expenses and hiring practices that increase health care costs; eliminating counterproductive requirements that increase the cost of household appliances; creating employment opportunities for American workers, including attracting discouraged workers into the workforce; and an end to harmful, coercive ‘climate policies’ that raise the costs of food and fuel.”
Specific to housing, the memo states: “Additionally, many Americans are unable to purchase homes due to historically high prices, due in part to regulatory requirements that, according to recent analysis, represent 25 percent of the cost of building a new home alone.
“In summary, the Biden administration’s unprecedented clampdown has imposed an estimated nearly $50,000 in costs on the average American household, while my first-term agenda has reduced regulatory costs by nearly $11,000 per household. It is critical to restore the purchasing power of the American family and improve our quality of life.”
The day started with Trump’s inaugural speechthat focused on making America great again, but was not specifically focused on housing. “From this moment on, it will be America First. Every decision on trade, taxes, immigration and foreign affairs will benefit American workers and American families,” the president said in his speech.
Trump has promised to join in 100 executive orders on his first day at work, which can be grouped into these categories:
- Immigration: Ten executive orders on border security and illegal immigration, including a national border emergency declaration
- Defining DEI/gender: Ending DEI programs in government, defining two genders.
- Energy/Climate Change: Declaring a national energy emergency and withdrawing from the Paris Agreement.
- Inflation: See above.
- Mixed (renaming the Gulf of Mexico, extending the TikTok ban deadline, etc.)
We’ll keep an eye on the details of these orders as they pass through today and this week, as some – such as inflation initiatives – could directly impact housing construction. But Trump’s housing policies are also reflected in his choices for federal departments and regulatory agencies.
Trump is known for being anti-regulation and has promised to look at every government agency and regulator to see where he can make cuts. On Monday evening, Trump officially created the Department of Government Efficiency (DOGE) by executive order to implement this vision, under the leadership of Elon Musk. (Trump accomplished this by renaming the United States Digital Service, which was created by the Obama administration in 2014. The DOGE effort was facing multiple lawsuits because it operated under an unofficial status).
On Monday evening, Trump signed an executive order freezing government recruitment and a “regulatory freeze” that prevents the creation of new federal regulations, NPR reported.
Here’s what his plan to reform federal agencies and regulators and influence economic factors looks like so far.
HUD
HUD was identified in the Project 2025 Presidential Transition Project as an agency focused on massive budget cuts. The author of the HUD section was Trump’s former HUD Secretary Ben Carson, who wrote that HUD needed a “reset,” which would include “a broad reversal of the Biden administration’s continued implementation of corrosive progressive ideologies in its programs of the department’.
Trump’s nominee for HUD secretary this term is Scott Turner, who worked very closely with Carson during Trump’s first term. Turner is the former Executive Director of the White House Opportunity and Revitalization Council (WHORC), a member of the America First Policy Institutea former professional football player and Texas state representative.
During Trump’s first term, Turner oversaw about $50 billion in private investments in the country opportunity zones. During his confirmation hearing last week, Turner emphasized that he would look very closely at HUD’s budget to eliminate any inefficiencies.
FHFA
Trump announced his choice for FHFA director last week: Bill Pulte. Pulte is the grandson of the late homebuilding icon William Pulte and is the founder of Pulte Capital Partnerswhich focuses on construction investments in “middle market companies and lower priority divisions of national companies,” according to the company’s website.
The FHFA is charged with oversight, regulation, and oversight of the housing mission Fannie Mae, Freddie Macand the Federal home loan banksto ensure they fulfill their mission to serve as a reliable source of liquidity and financing for home financing and community investments. It is not yet clear what the agency’s goals and priorities will be under Pulte. With his family ties to homebuilding, Pulte is seen as a “friend of the industry,” investment banker and author Chris Whalen said in an interview with HousingWire.
The fate of the CFPB
The Consumer Financial Protection Bureau (CFPB) has been a target of Trump since the last time he was in office. Musk ramped up the administration’s rhetoric this time, calling for the “removal” of the CFPB in November. That sentiment apparently makes it difficult to find anyone who wants Rohit Chopra’s job heading the agency. The Financial Times reported that several ‘experienced candidates’ opted not to take part in the selection process when reached about a potential role in the role.
Trump’s choice to lead the CFPB in his first term, Kathy Kraninger, was supported by mortgage industry groups during her term and was picked to lead the CFPB. Florida Bankers Association after she resigned as CFPB director when Biden won.
Rates
Trump did not immediately impose tariffs on Monday, but issued an executive order “directing federal agencies to begin studying a broad list of trade issues that could ultimately result in taxes on goods from China, Canada, Mexico and other countries in the coming months.” ” the The New York Times reports this. However, the Times also reported that Trump, in response to a reporter’s question about tariffs Monday evening, said he planned to impose 25% tariffs on Canada and Mexico starting Feb. 1.
During his campaign and since the election, Trump has proposed tariffs on imports from a number of countries, including tariffs of 60% to 100% on products imported from China and a 25% tariff on all Mexican goods.
Within the residential construction sector, homebuilders are most likely to feel the impact of the rates. During Trump’s first term, tariffs on Canadian softwood lumber led to a rise in costs for homebuilders. In 2018, the NAHB estimated that the rates added nearly $9,000 to the cost of building a single-family home. The impact on lumber prices was dramatic, with costs increasing by almost 80% year over year, partly due to taxes.
HousingWire principal analyst Logan Mohtashami pointed out in a recent podcast that President Trump is more of a “tactical tariff person than a full-fledged trade war person.” During his previous administration, he waited until corporate tax cuts were implemented before launching a more tactical trade war.”
