White House Report Finds US Short 10 Million Houses, Calls for Sweeping Regulatory Cuts to Fix Housing Crisis
Why It Matters
For American families across the country — including in Idaho and the Mountain West, where home prices have surged in recent years — the housing shortage has pushed homeownership out of reach for millions. A new White House report now puts a hard number on the problem and proposes a path forward rooted in cutting government regulation and reducing the cost burdens builders face.
The report, part of the annual Economic Report of the President, estimates the United States is short 10 million homes — a deficit that economists say is suppressing the middle class, inflating monthly costs for buyers, and dragging on broader economic growth.
What Happened
The White House Council of Economic Advisers released the housing chapter of the Economic Report of the President on Monday, laying out a detailed blueprint for how the federal government could address the nation’s housing shortage through deregulation and reduced construction compliance costs.
The report, obtained by the Associated Press before its public release, argues that if homebuilding had continued at its historical pace following the 2008 global financial crisis — rather than falling sharply — there would be 10 million more homes on the American market today. The crisis, triggered largely by reckless lending and housing speculation, caused a prolonged collapse in construction that the country has never fully recovered from.
President Donald 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 administration has also outlined plans involving the purchase of mortgage-backed securities as part of its broader housing strategy.
By the Numbers
- 10 million: The estimated number of homes the U.S. is currently short, according to White House economists.
- 82%: The increase in home prices since 2000, compared to just a 12% rise in incomes over the same period.
- $100,000+: The added cost per home attributed to what the report calls the “bureaucrat tax” — a combination of changing building codes, zoning fees, and compliance expenses.
- 13.2 million: The number of new homes the report estimates could be built if regulatory costs were reduced.
- 2 million: Manufacturing and construction jobs the report projects could be supported by a housing construction boom, which it also says could add an average of 1.3 percentage points to annual economic growth over the next decade.
Zoom Out
The housing shortage is not a new problem, but the report makes clear it has become a political flashpoint. Home affordability has become a top concern among voters under 40, particularly after mortgage rates spiked in the post-pandemic inflation surge. The report notes that average rates on 30-year mortgages have climbed from just under 6% to 6.37%, partly driven by global instability including the ongoing Iran conflict.
The report also takes direct aim at green energy housing mandates introduced during the Biden administration, arguing that requirements for more efficient air conditioning units, water heaters, and related duct work have added up to $31,000 to the price of a new home — costs that, the report claims, could take as many as 90 years for a homebuyer to recoup through energy savings. A federal judge in Texas sided with 15 Republican-led states in March, ruling that some of those federally backed housing standards were unlawful.
The White House has reportedly considered making federal funding to state and local governments contingent on reducing regulatory barriers to construction — a move that would directly impact how cities and counties across the country zone and permit new housing. For fast-growing states in the Mountain West, where local zoning restrictions have contributed heavily to supply shortfalls, such a policy shift could carry significant consequences.
The Trump administration has faced criticism for being slow to prioritize housing amid a crowded international agenda. A speech at the World Economic Forum in Davos earlier this year that was billed as focused on housing instead became dominated by Trump’s comments on Greenland.
What’s Next
The release of the Economic Report of the President sets the stage for the administration to push housing deregulation as a midterm messaging priority. With Republicans expected to face a challenging 2026 midterm environment, the White House appears to be positioning housing affordability — framed around cutting government red tape — as a key economic issue heading into the election cycle.
Whether Congress moves to codify the executive orders or attach housing reform conditions to federal funding remains to be seen. In the meantime, the administration’s executive actions and the ongoing legal battles over Biden-era building standards will continue to shape the housing landscape. For more on how federal policy is affecting domestic industries, see our coverage of a U.S. manufacturer setting its sights on lunar mining operations.
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