One of the most significant challenges facing Americans amid rising living costs is the shortage of affordable, available housing, but President Donald Trump is preparing to address the issue with a new policy initiative that could encourage the construction of as many as 12 million new homes, according to a senior adviser familiar with the plan.
“The President has the opportunity in front of him to create possibly the largest housing boom in US history. And I think he has the tools and the personality to accomplish [and] the plans to accomplish it,” Morris Davis, the recently departed Chief Housing Economist for the White House Council of Economic Advisers, told Just the News.
The United States continues to face a significant housing shortage, with estimates indicating a deficit of roughly 3 million to 5 million homes nationwide. For extremely low-income households, the shortfall is even more pronounced, with as many as 7.1 million affordable rental units lacking as of late 2025.
The gap is the result of decades of underbuilding and has contributed to record-high home prices and worsening affordability. About one-third of U.S. households now spend more than 30% of their income on housing, a commonly used benchmark for cost burden.
High mortgage rates, generally ranging from 6% to 7%, along with elevated rents, have further constrained the market. Existing-home sales have fallen to their lowest levels in roughly 30 years, while first-time buyers are entering the market later, with the median age rising to about 40.
Also, reports have noted that the importation of millions of illegal immigrants during the Biden administration fed the housing shortage.
Trump himself, as has Vice President JD Vance, has attributed high housing costs partly to immigration, stating that a “major factor” in driving up housing costs was the “colossal border invasion” during the Biden years, and claiming that his deportation policies are “freeing up inventory for Americans.”
Morris, who serves on the board of directors of construction technology company BOXABL, addressed the issue in recent remarks, pointing to supply constraints as a central factor driving the affordability crisis.
“There are some ideas that are being discussed that are both on the demand side and supply side. The demand side is that the Fed has to lower interest rates. Mortgage rates are too high. With the new Fed chairman, interest rates and mortgage rates will come down. That’s part of the equation,” he told the outlet.
Although there have been some recent increases in inventory and a slight cooling in price growth, experts warn that the affordability crisis remains severe. Structural issues, such as zoning restrictions and construction constraints, are likely to prolong the shortage in the coming years.
Morris also addressed the housing inventory situation.
“The other part of the equation that’s a necessity, is to create more houses. And we think that the President has the capacity with the right plan to create 12 million new houses over the next 10 years. What that will do is make housing attainable for young families,” he said.
According to Pew Research, the illegal immigrant population in the U.S. was approximately 14 million as of July 2023. Assuming these individuals share homes with an average of three other people, this means that about 3.5 million households are being utilized by people in the country illegally.
In an address to the nation on Dec. 17, Trump said his administration plans to unveil what he described as “some of the most aggressive housing reform plans in American history” next year to address housing affordability.
Administration officials have also discussed a range of policy options, including using federal land for affordable housing development, reducing regulatory barriers to increase housing supply, and examining potential mortgage relief measures.
Those proposals have included the possibility of lower interest rates through coordination with the Federal Reserve, though no specific details or timelines have been announced, Just the News noted.
