:max_bytes(150000):strip_icc()/GettyImages-2200393148-8053a017099040cd93bfbe257e2dff5a.jpg "Trump Promises ‘Aggressive’ Housing Reforms in 2026. Here’s What We Know So Far")
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Key Takeaways
- President Trump has promised major housing reforms. That could mean declaring a national housing emergency and the introduction of 50-year mortgages.
- Some reforms could also come from Congress, which is advancing bipartisan housing legislation.
The housing market has been plagued by high costs and limited supply. Are reforms on the way?
That’s what President Donald Trump promised in a Dec. 17 address. What precisely those reforms could entail remains uncertain, though Trump could use 2026 to move forward with proposals he’s touted since taking office.
“Mortgage payments will be coming down even further,” Trump said. “Early in the new year you will see this. I will announce some of the most aggressive housing reform plans in American history.”
Housing a Priority in 2026
Some officials in government and the housing industry have said that the federal government needs to take action on issues that are driving housing costs higher.
Elevated mortgage rates that have been stuck at over 6% for more than three years have made borrowing more difficult for homebuyers. A shortage of homes for sale has also helped keep prices elevated.
Why This Matters to You
Policy changes that affect mortgage terms, interest rates, building regulations, or housing supply can ripple through financial markets by altering demand for homes, credit risk for lenders, and profitability for real estate, construction, and materials companies.
“President Trump is prioritizing housing and home affordability going into the new year,” Scott Turner, secretary of the Department of Housing and Urban Development, told Fox News this week.
Trump issued an executive order to address housing on his first day in office, directing the heads of all government agencies to take action to “lower the cost of housing and expand housing supply.” Treasury Secretary Scott Bessent in a September interview raised the idea of declaring a national housing emergency, which might give the president expanded power to address housing issues.
Bessent said that the administration was looking at ways to reduce closing costs and standardize local building codes that some say are driving up costs. He also suggested lowering tariffs on products used in the construction process. Trump has said increased immigration enforcement will also reduce housing costs by reducing competition for inventory.
Housing reform will be a pillar of Trump’s focus on affordability ahead of mid-term elections in the fall, Bessent said.
Changes to Mortgage Lengths, Rates Coming?
Trump could also push forward the creation of a 50-year mortgage loan. He has argued that adding two decades to the term of a loan would mean lower monthly payments, though critics have said that it would increase the total borrowing costs. Turner recently said the 50-year mortgage proposal was still being considered by the administration.
“The 50-year mortgage, and other ideas that have been circulated through the public are being discussed, are on the table,” Turner said.
Trump in his address said that a new Federal Reserve chair would lower interest rates, which he said would also lead to lower borrowing costs for home loans. Whether a move to lower short-term borrowing costs by the Federal Reserve will result in lower mortgage costs remains in question, as mortgage rates aren’t directly influenced by the Fed’s moves.
Trump is widely expected to appoint a new Fed chair when Jerome Powell’s term expires in May.
Congressional Legislation Could Also Bring Reforms
Some reform could come from Congress, which is considering bipartisan legislation that would enact several housing industry changes.
In December, a committee in the House of Representatives approved the Housing for the 21st Century Act, which is designed to encourage more construction and supported by top legislators in both parties. Similar legislation has already been approved by the Senate.
The legislation focuses on establishing federal “best practices” for local governments in order to make it easier for developers to get projects approved. Housing industry officials have said that the patchwork of federal, state and local regulations often make it difficult and expensive for homebuilders to construct more housing.
The bill would also raise loan limits for apartment and multifamily projects, improve rural housing programs and strengthen coordination across federal agencies, said Mortgage Bankers Association President and CEO Bob Broeksmit.
The legislation, Broeksmit said in a release, “reflects a shared commitment to increasing supply, improving affordability, and modernizing federal housing programs.”
