Building Low-Cost Housing and Reducing High Interest Rates: An Analysis of Trump's Measures to Address the U.S. Housing Crisis

The U.S. housing market is deeply mired in multiple dilemmas, with intertwined issues such as housing shortages, soaring costs, and class divisions directly impacting social stability. Faced with this severe crisis, the Trump administration has proposed a series of response measures. Behind these policies lie both political calculations and short-term demands, yet they cannot conceal the neglect of long-term social welfare. This article will delve into the core issues of the U.S. housing crisis, Trump's response strategies and their potential impacts, and explore the deeper roots of the crisis and possible solutions. The U.S. housing market is deeply mired in multiple dilemmas, with intertwined issues such as housing shortages, soaring costs, and class divisions directly impacting social stability. Faced with this severe crisis, the Trump administration has proposed a series of response measures. Behind these policies lie both political calculations and short-term demands, yet they cannot conceal the neglect of long-term social welfare. This article will delve into the core issues of the U.S. housing crisis, Trump's response strategies and their potential impacts, and explore the deeper roots of the crisis and possible solutions.

I. The Current State and Core Issues of the U.S. Housing Market

Housing shortage and the distorted evolution of housing supply allocation.

Housing shortage is one of the core contradictions in the current U.S. housing market, and the solution of "dividing large houses into smaller units for rent" has been widely discussed around this issue. It is noteworthy that Airbnb's business model aligns precisely with this idea. The platform has evolved from a simple travel accommodation service provider into a massive real estate operation entity. Its core advantage lies in the flexible control over housing units—it can freely decide to rent out or reclaim them based on market demand, thereby ensuring stable cash flow. This also reflects, from a different perspective, the resource allocation logic of the U.S. housing rental market. Housing shortage is one of the core contradictions in the current U.S. housing market, and the solution of "dividing large houses into smaller units for rent" has been widely discussed around this issue. It is noteworthy that Airbnb's business model aligns precisely with this idea. The platform has evolved from a simple travel accommodation service provider into a massive real estate operation entity. Its core advantage lies in the flexible control over housing units—it can freely decide to rent out or reclaim them based on market demand, thereby ensuring stable cash flow. This also reflects, from a different perspective, the resource allocation logic of the U.S. housing rental market.

The core obstruction in affordable housing construction: the dilemma of zoning laws.

The booming housing market has made the qualification for constructing affordable housing and low-rent apartments a focal point of intense competition among various parties. The key to obtaining this qualification lies in whether one can circumvent the strict restrictions of zoning laws. In terms of funding sources, the construction of affordable housing primarily relies on subsidies from federal and local housing authorities, which also explains why the U.S. government needs to continuously invest substantial funds in the field of housing subsidies. The booming housing market has made the qualification for constructing affordable housing and low-rent apartments a focal point of intense competition among various parties. The key to obtaining this qualification lies in whether one can circumvent the strict restrictions of zoning laws. In terms of funding sources, the construction of affordable housing primarily relies on subsidies from federal and local housing authorities, which also explains why the U.S. government needs to continuously invest substantial funds in the field of housing subsidies.

The root cause of persistently high administrative and planning costs.

The healthy development of the U.S. housing market is also constrained by high administrative and planning costs. The accumulation of budgeting, urban planning, legal enforcement, and management expenses at various levels results in nationwide housing-related administrative costs reaching as high as $40 billion annually. Tracing back to the source, the root of this problem lies in the current intricate and complex zoning laws across various regions in the United States. The planning and coordination work required has completely exceeded the scope of what can be efficiently managed by human resources, creating administrative barriers that are difficult to break through. The healthy development of the U.S. housing market is also constrained by high administrative and planning costs. The accumulation of budgeting, urban planning, legal enforcement, and management expenses at various levels results in nationwide housing-related administrative costs reaching as high as $40 billion annually. Tracing back to the source, the root of this problem lies in the current intricate and complex zoning laws across various regions in the United States. The planning and coordination work required has completely exceeded the scope of what can be efficiently managed by human resources, creating administrative barriers that are difficult to break through.

Comparative Analysis of the Roles of Market Entities and the Subprime Crisis

The current U.S. housing market exhibits a frenzied state of nationwide participation: real estate developers, homebuyers, and housing authorities are all "celebrating" in the market, and even professionals from non-real estate industries are trying to get a piece of the pie. Compared to the subprime mortgage crisis period, the current market shows significant differences: The current U.S. housing market exhibits a frenzied state of nationwide participation: real estate developers, homebuyers, and housing authorities are all "celebrating" in the market, and even professionals from non-real estate industries are trying to get a piece of the pie. Compared to the subprime mortgage crisis period, the current market shows significant differences:

During the subprime era, zoning regulations were relatively lenient, the "Not In My Backyard (NIMBY) movement" had not yet led to the disappearance of comfortable and affordable housing in cities, and a large number of low-income individuals obtained their first homes through subprime mortgages. The level of chaos and segregation between communities was far lower than it is today. In the current market, the locations of high-quality properties are fixed and increasingly scarce and expensive. This phenomenon is related both to the asset inflation among the wealthy caused by the Biden administration's quantitative easing policies and to the irrational surge in housing prices during economic boom cycles (if the needs of the poor are ignored), placing immense home-buying pressure on young people newly entering society. During the subprime era, zoning regulations were relatively lenient, the "Not In My Backyard (NIMBY) movement" had not yet led to the disappearance of comfortable and affordable housing in cities, and a large number of low-income individuals obtained their first homes through subprime mortgages. The level of chaos and segregation between communities was far lower than it is today. In the current market, the locations of high-quality properties are fixed and increasingly scarce and expensive. This phenomenon is related both to the asset inflation among the wealthy caused by the Biden administration's quantitative easing policies and to the irrational surge in housing prices during economic boom cycles (if the needs of the poor are ignored), placing immense home-buying pressure on young people newly entering society.

Social despair and political turmoil triggered by the housing crisis.

The continuous deterioration of the housing issue has triggered a severe social emotional crisis, among which young Americans are more desperate than young Chinese. This sense of despair serves as a crucial backdrop for numerous socio-political upheavals: radical actions within the "Free Palestine" movement (such as throwing Molotov cocktails at officials' residences), assassination attempts targeting Trump and Chuck Schumer, among others, are all closely linked to the survival pressure brought about by the housing crisis. The core argument is that housing is the most fundamental human survival need, and the ongoing escalation of the housing crisis has directly undermined the stability of American society. The continuous deterioration of the housing issue has triggered a severe social emotional crisis, among which young Americans are more desperate than young Chinese. This sense of despair serves as a crucial backdrop for numerous socio-political upheavals: radical actions within the "Free Palestine" movement (such as throwing Molotov cocktails at officials' residences), assassination attempts targeting Trump and Chuck Schumer, among others, are all closely linked to the survival pressure brought about by the housing crisis. The core argument is that housing is the most fundamental human survival need, and the ongoing escalation of the housing crisis has directly undermined the stability of American society.

II. Trump's Response Policies and Potential Impacts

Personnel adjustments and the policy of tightening loan support.

The Trump administration's primary measure to address the housing crisis was personnel arrangements, appointing a new Director of the Federal Housing Finance Agency. The core function of the Federal Housing Finance Agency is to provide financing support for Fannie Mae and Freddie Mac and to set the mortgage quotas they must purchase, targeting low- and middle-income borrowers. Based on this function, Trump's new policy direction is clear: through the new director, promote reducing the number and total volume of affordable housing loans for low- and middle-income borrowers. The Trump administration's primary measure to address the housing crisis was personnel arrangements, appointing a new Director of the Federal Housing Finance Agency. The core function of the Federal Housing Finance Agency is to provide financing support for Fannie Mae and Freddie Mac and to set the mortgage quotas they must purchase, targeting low- and middle-income borrowers. Based on this function, Trump's new policy direction is clear: through the new director, promote reducing the number and total volume of affordable housing loans for low- and middle-income borrowers.

The core objectives of this policy are twofold: first, to compel large real estate developers to abandon the **"holding back properties to drive up prices" strategy**, releasing the land and housing units they have hoarded onto the market to alleviate housing shortages; second, to prevent Freddie Mac from triggering a new round of subprime mortgage crisis due to excessively high debt ratios. However, critics point out that this policy will directly lead to increased difficulty for low-income groups in obtaining home purchase funds, making affordable housing lose its "affordability," and ultimately, the cost will still be passed on to ordinary consumers. The core objectives of this policy are twofold: first, to compel large real estate developers to abandon the **"holding back properties to drive up prices" strategy**, releasing the land and housing units they have hoarded onto the market to alleviate housing shortages; second, to prevent Freddie Mac from triggering a new round of subprime mortgage crisis due to excessively high debt ratios. However, critics point out that this policy will directly lead to increased difficulty for low-income groups in obtaining home purchase funds, making affordable housing lose its "affordability," and ultimately, the cost will still be passed on to ordinary consumers.

Strategic considerations for proposing the declaration of a "national housing emergency."

Trump plans to announce a national housing emergency in October. According to the **National Emergencies Act of 1976, the President can bypass Congress to take a series of strong measures** after declaring an emergency — Trump has previously used this law to address major issues such as immigration and trade wars (e.g., imposing high tariffs). This move signifies that Trump is elevating the housing issue to the highest national priority, and may subsequently introduce a series of "unconventional" policy measures, demonstrating a strong interventionist stance in the housing market. Trump plans to announce a national housing emergency in October. According to the **National Emergencies Act of 1976, the President can bypass Congress to take a series of strong measures** after declaring an emergency — Trump has previously used this law to address major issues such as immigration and trade wars (e.g., imposing high tariffs). This move signifies that Trump is elevating the housing issue to the highest national priority, and may subsequently introduce a series of "unconventional" policy measures, demonstrating a strong interventionist stance in the housing market.

Potential Policy Initiatives in a State of Emergency.

If a national housing emergency is declared, the Trump administration may introduce three core measures: First, pressure the Federal Reserve to cut interest rates, using the excuse that "high interest rates harm the housing market," leveraging emergency powers to force the Fed to quickly lower rates and reduce mortgage interest—currently, the absolute burden of U.S. mortgage debt ranks first globally, making rate cuts a key demand to alleviate public pressure on home purchases; second, lower construction standards, "redefining" the standards for building materials and raw materials for affordable housing, essentially reducing construction standards to cut building costs—this move has been criticized by outsiders as promoting **"low-standard housing,"** posing serious safety risks; third, reduce or eliminate tariffs, exempting tariffs on some imported building materials to lower input construction costs. If a national housing emergency is declared, the Trump administration may introduce three core measures: First, pressure the Federal Reserve to cut interest rates, using the excuse that "high interest rates harm the housing market," leveraging emergency powers to force the Fed to quickly lower rates and reduce mortgage interest—currently, the absolute burden of U.S. mortgage debt ranks first globally, making rate cuts a key demand to alleviate public pressure on home purchases; second, lower construction standards, "redefining" the standards for building materials and raw materials for affordable housing, essentially reducing construction standards to cut building costs—this move has been criticized by outsiders as promoting **"low-standard housing,"** posing serious safety risks; third, reduce or eliminate tariffs, exempting tariffs on some imported building materials to lower input construction costs.

The core objective of this series of measures is to address the issue of excessively high construction costs for affordable housing and to break the deadlock where developers are unwilling to participate in construction due to lack of profitability. The core objective of this series of measures is to address the issue of excessively high construction costs for affordable housing and to break the deadlock where developers are unwilling to participate in construction due to lack of profitability.

Dual Evaluation of Trump's Housing Policies

From a political perspective, Trump's housing policy is extremely "shrewd": on one hand, much like the issue of combating crime, as long as **"performative" actions are taken on housing and some results are achieved, it can quickly win the support of people troubled by high housing prices; on the other hand, lowering standards to build "low-standard housing" has short-term "rationality"** economically, because related safety crises are unlikely to erupt during his term; additionally, blaming the Federal Reserve for high mortgage interest rates, using pressure to lower interest rates to alleviate government debt pressure, while the potential inflation and devaluation of dollar assets that may result from interest rate cuts are set aside as non-priority issues. From a political perspective, Trump's housing policy is extremely "shrewd": on one hand, much like the issue of combating crime, as long as **"performative" actions are taken on housing and some results are achieved, it can quickly win the support of people troubled by high housing prices; on the other hand, lowering standards to build "low-standard housing" has short-term "rationality"** economically, because related safety crises are unlikely to erupt during his term; additionally, blaming the Federal Reserve for high mortgage interest rates, using pressure to lower interest rates to alleviate government debt pressure, while the potential inflation and devaluation of dollar assets that may result from interest rate cuts are set aside as non-priority issues.

However, this policy carries significant hidden risks: it essentially shifts the burden of housing shortages onto low-income groups and may foster distorted public opinion such as "if you can't afford low-standard housing, it's due to personal lack of effort." It is a typical short-sighted act of prioritizing short-term political gains over long-term social welfare. However, this policy carries significant hidden risks: it essentially shifts the burden of housing shortages onto low-income groups and may foster distorted public opinion such as "if you can't afford low-standard housing, it's due to personal lack of effort." It is a typical short-sighted act of prioritizing short-term political gains over long-term social welfare.

III. In-depth Analysis and Fundamental Solutions to the U.S. Housing Crisis

The Structural Roots of Crisis: Resource Misallocation and Institutional Rigidity

The root of the U.S. housing crisis is not simply a "shortage of houses," but a shortage of quality housing—that is, housing in superior locations that is affordable. At a deeper level, urban land and spatial planning have "lost imagination," and the development of new areas faces massive approval processes, particularly environmental reviews and litigation obstruction from various citizen groups, severely constraining housing supply capacity. The root of the U.S. housing crisis is not simply a "shortage of houses," but a shortage of quality housing—that is, housing in superior locations that is affordable. At a deeper level, urban land and spatial planning have "lost imagination," and the development of new areas faces massive approval processes, particularly environmental reviews and litigation obstruction from various citizen groups, severely constraining housing supply capacity.

Among these, the rigid interpretation of private land ownership is the core obstacle: existing landowners (including environmental groups, farmers, etc.), to prevent the devaluation of their own assets, will strongly obstruct the development of new housing projects. These groups happen to be the core political base for both major U.S. political parties, making any reforms that touch the land system extremely difficult to advance, forming a vicious cycle of **"entrenched interests—stalled reforms—worsening crisis"**. Among these, the rigid interpretation of private land ownership is the core obstacle: existing landowners (including environmental groups, farmers, etc.), to prevent the devaluation of their own assets, will strongly obstruct the development of new housing projects. These groups happen to be the core political base for both major U.S. political parties, making any reforms that touch the land system extremely difficult to advance, forming a vicious cycle of **"entrenched interests—stalled reforms—worsening crisis"**.

Radical Solution: Construction of Satellite Cities and Institutional Breakthroughs

The best solution to solve the U.S. housing crisis is believed to be the construction of satellite cities around major metropolitan areas. There have been successful precedents in U.S. history where satellite cities formed spontaneously (such as the development of New York's five boroughs and the driving role of Tom Cotton). As long as satellite cities can be built and related industrial support facilities are improved, the current housing shortage problem will be readily resolved. The best solution to solve the U.S. housing crisis is believed to be the construction of satellite cities around major metropolitan areas. There have been successful precedents in U.S. history where satellite cities formed spontaneously (such as the development of New York's five boroughs and the driving role of Tom Cotton). As long as satellite cities can be built and related industrial support facilities are improved, the current housing shortage problem will be readily resolved.

Specifically, new cities could be planned and constructed in the **"Sun Belt" southern regions or areas with fewer natural disasters (such as the Mississippi Delta). However, the key prerequisite for this plan is that it requires sweeping reforms of environmental regulations and landowner protection clauses**, and may even necessitate reinterpreting private land ownership through methods like "conceptual reshaping" and "definition substitution" to concentrate administrative resources for promoting satellite city construction. From the perspective of political feasibility, this requires a strong leader willing to offend core interest groups (environmental groups as the left-wing voting base, farmers as the right-wing voting base). However, current U.S. politics is extremely polarized, with both parties reluctant to touch these core interest groups, making it difficult to implement the satellite city construction plan. Specifically, new cities could be planned and constructed in the **"Sun Belt" southern regions or areas with fewer natural disasters (such as the Mississippi Delta). However, the key prerequisite for this plan is that it requires sweeping reforms of environmental regulations and landowner protection clauses**, and may even necessitate reinterpreting private land ownership through methods like "conceptual reshaping" and "definition substitution" to concentrate administrative resources for promoting satellite city construction. From the perspective of political feasibility, this requires a strong leader willing to offend core interest groups (environmental groups as the left-wing voting base, farmers as the right-wing voting base). However, current U.S. politics is extremely polarized, with both parties reluctant to touch these core interest groups, making it difficult to implement the satellite city construction plan.

Critical Reflection on the American Political System

The core governance dilemma currently facing the United States is the inability to concentrate administrative resources, which makes it difficult to effectively resolve a series of specific issues such as prices, inflation, debt, and housing. Some viewpoints even propose a "radical argument": the United States needs a **"strongman-style" leader** capable of effectively "liquidating political opponents" to break the current political deadlock, concentrate efforts to advance reforms, and solve problems. Whether it's Trump liquidating the left or the Democratic Party liquidating Trump, from a "technical perspective," both could help restore the government's administrative execution capability. The core governance dilemma currently facing the United States is the inability to concentrate administrative resources, which makes it difficult to effectively resolve a series of specific issues such as prices, inflation, debt, and housing. Some viewpoints even propose a "radical argument": the United States needs a **"strongman-style" leader** capable of effectively "liquidating political opponents" to break the current political deadlock, concentrate efforts to advance reforms, and solve problems. Whether it's Trump liquidating the left or the Democratic Party liquidating Trump, from a "technical perspective," both could help restore the government's administrative execution capability.

If this deadlock cannot be broken, American society will continue to decline amid ongoing nonviolent political confrontations and internal strife between the left and right, ultimately risking a total crisis that could erupt in the form of **"civil war" or "constitutional collapse."**

IV. Summary and Conclusion

Exploring Solutions to Social Dilemmas

Regarding the path forward for American society, some opinions state bluntly: "Do Americans want a better life? If they want a better life, they need to support class struggle." However, this demand carries potential risks—if the current struggle between the left and right factions cannot be "moderated," the ultimate outcome will be society exhausting itself in fierce conflict until mutual destruction. Regarding the path forward for American society, some opinions state bluntly: "Do Americans want a better life? If they want a better life, they need to support class struggle." However, this demand carries potential risks—if the current struggle between the left and right factions cannot be "moderated," the ultimate outcome will be society exhausting itself in fierce conflict until mutual destruction.

For the United States, the optimal solution might be the emergence of a strong leader (regardless of party) who can prioritize the public interest and integrate the strengths of all parties, leverage executive power to coordinate various factions, drive the implementation of key reforms, and prioritize restoring the government's administrative execution capability. In the face of this goal, issues like corruption appear relatively secondary. For the United States, the optimal solution might be the emergence of a strong leader (regardless of party) who can prioritize the public interest and integrate the strengths of all parties, leverage executive power to coordinate various factions, drive the implementation of key reforms, and prioritize restoring the government's administrative execution capability. In the face of this goal, issues like corruption appear relatively secondary.

Reflection on the System Behind the Crisis and Final Summary

A comment accurately summarizes the current state of American society: there is a widespread public hope for the emergence of a Roosevelt-style strongman leader to resolve crises, yet a neglect of cherishing and improving the existing system; however, looking back decades later, those "ideal society" blueprints once placed with high hopes may ultimately amount to empty talk. A comment accurately summarizes the current state of American society: there is a widespread public hope for the emergence of a Roosevelt-style strongman leader to resolve crises, yet a neglect of cherishing and improving the existing system; however, looking back decades later, those "ideal society" blueprints once placed with high hopes may ultimately amount to empty talk.

In summary, the U.S. housing crisis is the result of multiple overlapping factors: rigid zoning laws, high administrative costs, interest-driven conflicts under private land ownership, and profound socioeconomic divisions, which together constitute the core crux of the crisis. The Trump administration's response strategy is filled with political calculations, attempting to appease voters in the short term and shift conflicts by cutting loan support, planning to declare a state of emergency, lowering construction standards, and other measures. However, in the long run, this may sow the seeds of low-standard housing and financial risks. The fundamental solution to the crisis lies in building satellite cities and reforming land and environmental regulations, but this requires breaking the current political deadlock and centralizing administrative power. Ultimately, whether the United States can overcome the housing crisis essentially depends on its ability to break through the constraints of the political system and produce a strong leader willing to challenge vested interests—otherwise, society will descend into deeper crises through internal strife. In summary, the U.S. housing crisis is the result of multiple overlapping factors: rigid zoning laws, high administrative costs, interest-driven conflicts under private land ownership, and profound socioeconomic divisions, which together constitute the core crux of the crisis. The Trump administration's response strategy is filled with political calculations, attempting to appease voters in the short term and shift conflicts by cutting loan support, planning to declare a state of emergency, lowering construction standards, and other measures. However, in the long run, this may sow the seeds of low-standard housing and financial risks. The fundamental solution to the crisis lies in building satellite cities and reforming land and environmental regulations, but this requires breaking the current political deadlock and centralizing administrative power. Ultimately, whether the United States can overcome the housing crisis essentially depends on its ability to break through the constraints of the political system and produce a strong leader willing to challenge vested interests—otherwise, society will descend into deeper crises through internal strife.