Trump has a plan to make housing more affordable. Will it work?

January 13, 2026

TL;DR

President Trump proposed policies to reduce home buying costs: banning institutional investors from single-family homes and the government buying $200 billion in mortgage bonds.
The goal is to combat soaring home prices and elevated mortgage rates, making homeownership more accessible.
Experts doubt the proposals' effectiveness due to a significant undersupply of housing, stemming from years of underbuilding and homeowners reluctant to sell.
Lowering mortgage rates could inadvertently increase demand and drive up home prices, exacerbating the supply problem.
Institutional investors own a small percentage of single-family homes, limiting the impact of a ban.
Addressing the housing shortage through increased construction or zoning reforms is seen as crucial for long-term affordability.
Some experts anticipate minor benefits, such as slightly cheaper mortgages and a small reduction in home prices.

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