On March 13th, President Donald Trump issued executive orders designed to remove regulatory barriers to affordable home construction:
The American dream of homeownership depends on a dynamic housing market in which a varied inventory of new homes is built and renovated each year. Layers of unnecessary regulatory barriers, slow permitting processes, and onerous mandates at all levels of government have delayed construction, restricted development, and driven up the costs of new housing. These constraints have made housing less affordable for many Americans.
It is the policy of my Administration to reduce regulatory barriers to building homes and to steward taxpayer dollars in a manner that promotes housing affordability.
The U.S. Department of Housing and Urban Development (HUD) went into more detail on the orders: “Removing Regulatory Barriers to Affordable Home Construction” and “Promoting Access to Mortgage Credit.” The first EO terminates burdensome regulations that stall housing construction, deplete supply, and increase housing costs for hardworking American families. The second reduces regulatory hurdles that drive up borrowing costs, limit Americans’ access to home loans, and constrain community banks’ participation in the lending process.
“Homeownership is the bedrock of the American Dream, but that foundation crumbled under the Biden administration as red tape made building homes and securing mortgages increasingly more expensive,” said HUD Secretary Scott Turner. “President Trump’s Executive Orders will help HUD deliver on his promise to provide economic relief to American families and make homeownership affordable again. Ending burdensome regulations and improving mortgage affordability supports increased housing supply and pushes affordable homeownership back within reach for American families.”
Regulatory costs account for nearly $94,000 of the final price of a new single-family home, and green energy mandates in building codes can add more than $30,000 to the cost of construction. Overall deregulation efforts in 2025 are projected to save Americans a collective $212 billion.
In accordance with the EOs, the Department will terminate regulatory barriers, reform programs, and incentivize states and localities to change burdensome rules that hinder residential development, housing affordability, and availability of home loans.
Cutting layers of red tape, including onerous energy and water requirements for manufactured homes, laborious permitting processes, “green” building codes, costly building mandates, and outdated mortgage processes, will boost housing stock, lower the cost of newly built homes, and broaden opportunities for mortgage credit.
HUD will also increase efforts to expand housing supply by aligning Opportunity Zone incentives with single-family home development and New Markets Tax Credit programs. Opportunity Zones have already created more than 400,000 housing units in distressed communities.
These Executive Orders will ensure that small banks, financial institutions, and housing developers have the resources they need to help first-time homebuyers, veterans, and families forge pathways to homeownership.
Bill Owens, chairman of the National Association of Home Builders (NAHB) and a home builder and remodeler from Worthington, Ohio, issued the following statement after President Trump announced recent executive orders on housing:
Tagged with construction, housing“NAHB commends President Trump for taking bold actions to empower home builders to build the housing supply America needs. Today’s executive orders get at the root of the housing affordability problem by eliminating obstacles to build more homes and providing better access to financing.
“The president’s executive order to remove regulatory barriers will enable builders to build more housing by reducing red tape, streamlining permitting requirements and easing costly environmental regulations. The executive order for access to mortgage credit also takes important steps to provide better financing options for home buyers and home builders and make it easier for families to achieve the American dream of homeownership. NAHB looks forward to working with the Trump administration to implement these important directives.”