Treasury Secretary Scott Bessent on Monday said that the Trump administration is considering declaring a national housing emergency in order to address increasing housing prices. He told the Washington Examiner in an interview on Labor Day that "We may declare a national housing emergency in the fall."
🚨 BREAKING: U.S. Treasury Secretary Scott Bessent announced that the Trump administration is considering a national housing emergency declaration this fall to address the affordability crisis. Proposed measures include streamlining zoning regulations and reducing closing costs… pic.twitter.com/eKGufZYc13
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Bessent noted that while Federal Reserve rate cuts could ease housing costs, the Trump administration is exploring additional measures to reduce them in the interim. The Treasury secretary did not discuss the executive actions the President would have if a national emergency were declared.
Officials are examining ways to make local building and zoning codes uniform and to reduce closing costs."We're trying to figure out what we can do," Bessent said, "and we don't want to step into the business of states, counties and municipal governments. I think everything is on the table."
Tariff exemptions also appeared to be an option the Trump administration is weighing.
According to Fox Business, lumber costs have been volatile since President Trump's tariffs were put in place on Liberation Day in April. Almost a quarter of the United States' lumber comes from Canada, and currently, America does not produce enough lumber required to sustain its consumption.
As of late August, lumber prices remain elevated. The National Association of Home Builders reports that framing lumber is up nearly 6 percent from a year ago, while futures remain almost 20 percent higher. In July, the Commerce Department more than doubled duties on Canadian softwood lumber imports, raising the total tariff burden from 14.4 percent to 35.2 percent when combined with existing anti-dumping penalties.
U.S. lumber producers face little pressure to expand output, since tariffs allow them to charge higher prices than Canadian competitors. Rather than spurring new supply, the policy has simply encouraged domestic producers to maintain existing production levels, while homebuilders are left with fewer alternatives.