President Donald Trump made some curious statements this week regarding his goals for the housing market. Here is a look at what the president said about his plans to make homes more affordable.

Trump Says He Wants to Send Housing Prices Up

President Trump said that he wants to drive housing prices up rather than down, raising eyebrows about his plans to combat affordability. The president made the comments during his first Cabinet meeting of the year on January 29. While the comment may have seemed odd on the outset, he clarified that he wants the prices to go up for people who own their homes.

Rather than wanting to lower housing prices, Trump said that lowering interest rates will provide the most benefits to American home buyers. The comments came one day before Trump nominated Kevin Warsh to replace the outgoing Jerome Powell as chairman of the Federal Reserve. Powell's term ends in May. While it is the job of the executive office to nominate the candidate for Fed chair, the choice will need to be confirmed by the Senate.

Trump has been criticized for choosing Warsh to lead the nation's central bank, with several Democratic leaders saying that it was a political pick. The president suggested during the Cabinet meeting that he expects his Fed pick to lower interest rates in an effort to pave the way for more Americans to enter the housing market, even if home prices jump. Trump has not been shy in pushing Powell to cut interest rates, causing strife between the White House and the politically neutral Fed.

According to the January 27 report from the U.S. Federal Housing Finance Agency, home prices inched up 0.6% in November when compared to the previous month. Real estate company Redfin reported that the national median home price is now sitting at a record $433,000, as of the November 2025 numbers. Looking ahead, Zillow is predicting that housing prices will increase by 1.9% over the course of the year.

In addition, pending sales of homes fell nearly 6% in December when compared to the previous year. All of these data points exemplify the nation's stagnant housing market.

Overall, housing prices are high when compared to income growth after taking inflation into account. These prices relative to other aspects of the economy have made it even more challenging for Americans to enter the housing market. A national housing shortage is also making the market stagnant. The lack of available housing is most pronounced at the lower end of the market.

How the Trump Administration is Trying to Make Housing More Affordable

The White House has made housing affordability a key tenet of its domestic policy proposals and action items. For example, a January 20 executive order banned institutional investors from purchasing single-family homes. The Trump administration also recently announced that it is buying mortgage-backed securities in order to lower mortgage rates.

Trump is breaking with his team about opinions on whether Americans should be able to tap into their 401(k) accounts for home down payments. Kevin Hassett, director of the National Economic Council (NEC), said last week that the Trump administration was putting together a plan to allow some 401(k) funds to be directed towards home down payments.

However, Trump told the media gathered on Air Force One on January 22 that he opposed this plan. The president said that he largely opposes the idea because everyone's retirement plans are doing so well in today's markets.

These recent actions lie in contrast with Trump's comments about wanting to send home prices higher. Trump justified the statement to his Cabinet secretaries, saying that more opportunities for Americans to purchase homes should not always mean lower costs. The president said, "We're going to keep those prices up. We're not going to destroy the value of their homes so that somebody who didn't work very hard can buy a home." He then added, "We're going to make it easier to buy. We're going to get interest rates down."

There are a number of factors that have contributed to the country's weak housing market. In addition to a lack of new housing, many homeowners have been hesitant to sell after locking in ultra-low mortgage rates during the downturn triggered by the pandemic. Mortgage rates trended lower once again during the second half of 2025, giving a slight opening for a few more buyers to enter the market.

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