By Kemi Osukoya
MARKETS AND ECONOMIC POLICY
WASHINGTON D.C.- President Donald Trump on Friday signed two executive orders aimed at reshaping the economics of homebuilding, targeting what the White House describes as the core drivers of the housing shortage: high construction costs, slow permitting and constrained mortgage credit.
The executive orders, which the Africa Bazaar exclusively first reported on Thursday, come as economists estimate the U.S. housing market remains short by three to six million homes, a gap that has pushed rents and home prices higher across much of the country. The orders build on an earlier housing directive issued in January and follow the Senate’s passage of the 21st Century ROAD to Housing Act, legislation the administration has endorsed as part of a broader push in Washington to expand housing supply.
At the center of the new orders is a sweeping effort to cut federal regulatory barriers that developers say slow construction and inflate costs. The administration has instructed agencies including the Environmental Protection Agency and the U.S. Army Corps of Engineers to review permitting rules covering wetlands, stormwater and other water-related regulations that builders argue can delay housing projects for months or even years. The White House is also urging regulators to expand exemptions under the National Environmental Policy Act in an effort to speed environmental reviews tied to residential construction.
Another pillar of the orders targets energy and building mandates introduced in recent years during the Biden administration era, which the Trump administration says have increased construction costs. Federal agencies have been directed to reassess water-use, energy-efficiency and alternative-energy requirements applied to residential development, including manufactured housing. Officials argue that such mandates—often embedded in state and local building codes—can add thousands of dollars to the price of a new home.
The administration is also moving to revive mortgage lending by community banks, which have pulled back from the market since tighter regulations were introduced following the passage of the Dodd-Frank Act after the 2008 global financial crisis. Regulators are now reviewing disclosure requirements and underwriting rules that lenders say have increased compliance costs and reduced participation in mortgage origination. Officials say the changes are intended to make it easier for smaller lenders to extend home loans, particularly in rural and lower-income communities.
At the same time, policymakers are seeking to increase liquidity in housing finance and expand capital for residential development. The administration is reviewing ways to strengthen the role of the Federal Home Loan Bank System and expand financing programs aimed at entry-level housing and smaller residential developers—segments many economists say are critical to closing the nation’s housing supply gap.
Finally, the orders call for modernization of the mortgage market, including broader adoption of digital mortgages, electronic closings and alternative property valuation tools such as hybrid or automated appraisals. Officials say these technologies could reduce transaction costs and speed loan approvals in a market where demand for housing continues to outpace supply.
Industry groups quickly welcomed the move. In a statement, National Association of Home Builders Chairman Bill Owens said the organization commends the president for what he called “bold actions to empower home builders to deliver the housing supply America needs,” adding that the executive orders address the root of the affordability challenge by removing regulatory obstacles and improving access to financing options for home buyers and home builders and make it easier for families to achieve the American dream of homeownership.
