Trump Admin Poised to Declare National Housing Emergency This Fall

The United States faces a growing housing crisis, a long-standing challenge that has escalated to the point where the Trump administration is considering a formal national emergency declaration. This potential move highlights a critical economic and social issue, marked by rapidly rising costs and a widening affordability gap that burdens a significant portion of American households.

Dan Coakley, a principal at Property Markets Group Affordable and a seasoned real estate developer, argues that a national housing emergency is already well underway and long overdue for federal recognition. He notes that despite its profound impact on daily life, the issue has often been overlooked by previous administrations. Treasury Secretary Scott Bessent has indicated the administration might make this declaration in the fall, citing persistent increases in housing prices and a dwindling supply nationwide.

Compelling data highlights the severity of the crisis. Over the past 25 years, median rents have climbed by 21%, while median incomes have risen by only 2% in the same period, creating unsustainable economic strain. This disparity means approximately 40% of U.S. households now spend over 30% of their take-home pay on housing—a widely accepted indicator of housing stress. Furthermore, the Harvard 2025 State of the Nation’s Housing report indicates home sales have fallen to a 30-year low, a consequence of high prices, elevated interest rates, and increasing insurance and property tax burdens.

Coakley praises the administration for prioritizing housing affordability and its stated willingness to explore diverse approaches. He proposes a three-pronged strategy for federal intervention:

• Enhanced Funding: A substantial increase in financial allocations is critical. Coakley cites the “Big, Beautiful Bill” as a positive precedent, which provided a 13% increase in tax credits to states—a primary funding source for affordable housing development.
• Tariff Relief: Reducing or eliminating tariffs on key construction materials like timber, lumber, gypsum, and glass would help lower development costs. Streamlining federal delivery processes for these materials is also essential.
• Zoning Reform: Addressing non-economic barriers, such as restrictive local zoning ordinances, is crucial for accelerating housing supply and reducing project delays.

Macroeconomic factors, particularly the Federal Reserve’s sustained high interest rates and their impact on mortgage rates, exacerbate the affordability challenge. These conditions make homeownership increasingly inaccessible for young people and first-time buyers, as wages have not kept pace with rising costs. Coakley emphasizes that the housing market affects all income levels and suggests monetary policy should consider its broader societal impact more comprehensively.

While drawing some parallels to past economic downturns, Coakley distinguishes the current situation from the 2008 Great Recession, clarifying it is not primarily a credit-market collapse. Instead, he describes it as a pervasive “state of limbo or hopelessness,” where the aspirational American dream of upward mobility through homeownership becomes increasingly elusive. He views housing affordability as a fundamental “linchpin issue,” critical for addressing a range of other socioeconomic concerns.

Ultimately, the housing crisis is presented as a nonpartisan, mission-driven issue. Developers, particularly those focused on affordable housing, are often motivated by both business objectives and civic commitment. Their readiness to collaborate across political lines underscores the urgency and widespread recognition that a concerted, unified effort is essential to alleviate the significant strain on millions of American households.