As housing affordability concerns continue to grow nationwide, President Donald Trump has said his goal is to boost housing prices rather than reduce them.
Speaking during a Cabinet meeting on Jan. 29, Trump said he wants to make it easier for Americans to buy homes—but not by lowering home values. Instead, he pointed to lower interest rates, which he expects to result from his forthcoming pick to lead the Federal Reserve, as the key mechanism that would expand access to homeownership even as prices rise.
“I don’t want to drive housing prices down. I want to drive housing prices up for people that own their homes,” Trump said. “And they can be assured that’s what’s going to happen.”
The remarks come as the administration rolls out policies aimed at addressing housing and broader cost-of-living pressures. These include a Jan. 20 executive order barring institutional investors from purchasing single-family homes, a move intended to expand individual homeownership. The administration has also taken steps to purchase mortgage-backed securities in an effort to push mortgage rates lower.
However, Trump emphasized that expanding access to homeownership should not come at the expense of current homeowners’ wealth, even as many Americans cite high home prices as a major financial strain.
“Existing housing, people that own their homes, we’re going to keep them wealthy,” Trump 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 added that while his administration plans to make homebuying easier by reducing interest rates, protecting homeowners’ equity remains a priority. “I want to protect the people who, for the first time in their lives, feel good about themselves. They feel like they’re wealthy people,” Trump said.
Housing prices continue to climb. According to the Federal Housing Finance Agency, prices rose 0.6% in November compared with the previous month. Redfin reported that the national median home price reached a record $433,000 in November 2025, while Zillow forecasts prices will rise another 1.9% in 2026.
Despite the gains, home prices remain high relative to income growth after inflation, placing homeownership out of reach for many Americans. The housing market remains sluggish amid a nationwide shortage, particularly in the lower-priced segment.
Trump also reiterated his opposition to a proposal backed by his White House economic team that would allow Americans to tap their 401(k) retirement savings for home down payments.
During the Cabinet meeting, Trump said he plans to announce his nominee for Federal Reserve chair next week. He has repeatedly criticized current Chair Jerome Powell for not cutting interest rates more aggressively. Powell’s term as Fed chair is set to expire in May.
Source: usatoday Edited by Bernie
