WASHINGTON — The United States faces a shortage of roughly 10 million homes, according to a new report from the White House that outlines efforts to boost construction and address the nation’s housing affordability crisis.
The findings, included in the 2026 Economic Report of the President and released by the White House Council of Economic Advisers, suggest the housing gap is larger than many experts had previously estimated.
White House economists pointed to a sharp decline in home construction following the 2007-08 global financial crisis as a primary driver of the shortage. The report said that if single-family home construction had continued at its historical pace rather than falling after 2008, the country would have at least 10 million more homes today.
‘Worsening Affordability’
The report also cited rising home prices as a major factor worsening affordability. Since 2000, property values have increased far faster than wages, a trend compounded by higher interest rates in the years following the COVID-19 pandemic, according to the analysis.
To address the imbalance, the report advocates reducing regulatory barriers to construction. White House economists estimate that excessive regulation adds more than $100,000 to the cost of building a home and argue that cutting what they describe as a “bureaucrat tax” could enable the construction of more than 31 million additional homes.
The report characterizes the Trump administration’s housing strategy as centered on private-sector-driven demand and increased supply supported by deregulation, tax policy and trade measures. It credits those policies with helping put downward pressure on long-term borrowing costs, including 10-year Treasury yields and mortgage rates.
Role of Rates
According to the report, the average rate for a 30-year fixed mortgage declined from 6.95% on Jan. 30, 2025, to 6.37% last week, citing data from Freddie Mac. While the drop is notable, it is smaller than the nearly full percentage point decline highlighted by the report’s authors.
The White House analysis also referenced policy actions including an executive order by President Donald Trump aimed at limiting institutional purchases of single-family homes, as well as reductions in multifamily mortgage insurance premiums by government-sponsored enterprises.
Housing affordability has become a central issue during Trump’s second term, as policymakers and industry leaders grapple with how to expand supply and improve access to homeownership.
