On March 13, 2026, Donald Trump signed two executive orders aimed at addressing one of the biggest economic challenges facing Americans today: housing affordability. The orders focus on two major parts of the housing system: the cost and complexity of building new homes, and the availability of mortgage credit for buyers.
Together, these policy changes are intended to increase housing supply while making it easier for qualified buyers to access financing. While the long-term effects remain uncertain, many housing experts believe the effort could help ease pressure in a market that has struggled with rising prices and limited inventory.
For years, economists and housing industry groups have argued that the United States faces a significant housing shortage. Regulatory costs, environmental reviews, and permitting delays have made building new homes more expensive and time-consuming.
One of the new executive orders directs multiple federal agencies to review and potentially eliminate regulations that increase construction costs or slow development. These include rules related to environmental reviews, water use, energy standards, building codes, and restrictions affecting manufactured housing.
Supporters of the order say reducing these barriers could help increase the number of homes being built. According to industry estimates, government regulations can add significantly to the cost of a new home through permitting delays, compliance requirements, and mandated construction standards.
Builders welcomed the move. Carl Harris, chairman of the National Association of Home Builders, said the initiative addresses a key issue behind the housing shortage: burdensome regulations, inefficient permitting, and restrictive zoning rules all raise construction costs, limit the production of attainable housing, and disproportionately affect buyers and renters.
According to the NAHB, regulatory costs account for roughly 24% of the price of a new single-family home and more than 40% of the cost of apartment developments. If fewer regulatory hurdles reduce construction costs and speed up approvals, developers may find it easier to build entry-level homes, townhomes, and manufactured housing, where shortages are often most severe.
The second executive order focuses on the financing side of housing. It directs regulators to review mortgage rules introduced after the 2008 financial crisis, including disclosure requirements and lending standards that some lenders say have become overly complex. For Northern Nevada readers comparing local markets, the Reno real estate market page and compare Northern Nevada communities guide can help connect national policy to local planning.
Federal agencies were instructed to examine reforms to mortgage regulations, encourage lending by community banks, modernize appraisal systems using digital valuation tools, and expand access to funding through the Federal Home Loan Bank system. Officials involved in the policy say these changes could increase competition among lenders and make mortgages easier to obtain for qualified buyers.
The order also encourages modernization of the appraisal process, including hybrid and desktop appraisals that may reduce costs and speed up real estate transactions.
Potential Benefits for the Housing Market
If the policies work as intended, several positive effects could emerge over time.
First, fewer regulatory barriers could help increase housing construction. More homes entering the market would help balance supply and demand, one of the key drivers of rising home prices.
Second, expanded access to mortgage credit could allow more buyers, especially first-time homebuyers, to qualify for financing. Greater competition among lenders may also help reduce borrowing costs.
Third, modernization of mortgage technology and appraisal systems could streamline real estate transactions, potentially reducing delays and lowering closing costs.
Taken together, these reforms attempt to address the housing crisis from both sides: increasing supply while improving financing access.
Despite optimism from many industry groups, federal action alone may not solve the housing shortage.
Many of the most significant homebuilding restrictions are imposed at the local level through zoning laws and land-use regulations. Land-use regulation is primarily a state power, and states typically delegate that authority to local governments. While the federal government can influence land use through funding, environmental rules, and civil rights laws, it does not directly control zoning.
Because local authority ultimately comes from the state, states can reclaim or reshape it to address issues like housing affordability, though doing so can be politically challenging.
The housing shortage in the United States developed over many years, and it will likely take time for any policy changes to make a noticeable difference. Still, these executive orders signal a renewed focus on affordability and homeownership.
If the policies successfully encourage new construction and expand access to mortgage financing, they could help more Americans achieve the goal of homeownership. However, their ultimate impact will depend on how federal agencies implement the rules and whether state and local governments also make it easier to build the homes the country needs.
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