PHOENIX — The Trump administration could declare a “national housing emergency” this fall.
Treasury Secretary Scott Bessent told the Washington Examiner this would be part of the Republicans’ midterm strategy: to focus on housing affordability.
Bessent said the White House is studying ways to standardize building codes, and lower closing costs. The Treasury Secretary addressed housing affordability during an interview with MSNBC in August.
“We’re going to be looking at what we can do for housing, for student loans, for overall,” Bessent said. “Because there is an affordability crisis.”
This year, President Trump said he believes high interest rates are damaging the housing market. Bessent agrees and said interest rate cuts would help make housing more affordable.
Locally, Governor Katie Hobbs has been working to increase home ownership across the state.
She just expanded the “Arizona is Home” program a month ago. The Federal American Rescue Plan Act invested $5 million into what started as a $13 million initiative.
The Governor’s Office said the expansion will help roughly 1,000 people close on a home.
Hobbs said she’s committed to fighting the ever-rising cost of homes across the state.
“I think about when I was a kid and talking to my parents about homeownership,” She said. "Those conversations are so different now with my own children. I remember it was a question of when, not if, I would be able to purchase a home. That is out of reach for so many Arizonans these days. Not just home purchases, but affording rents.”
These developments come as real estate company Redfin said the housing market has stalled, and buying a home has become more expensive.
Mark Stapp, a real estate professor at Arizona State University, says many things need to change. That way, the housing market can improve.
“Interest rates have to come down,” Stapp said. “Wages has to continue to rise. Inventory has to raise substantially for available homes. We have to have enough change in inventory that the supply and demand effect begins to work, and it stabilizes the price of homes.”
Stapp also said everyone is battling high interest rates and high prices at the same time.
“In fact, we haven’t see home prices fall. They remain rather stubborn,” he said. “I think that has much to do with the available inventory.”
As for the possible national housing emergency, Bessent said the White House is trying to figure out what it can do. Though he clarifies, federal leaders want to leave most policies up to the states.