A major disconnect exists in housing policy. Experts agree the root cause of unaffordability is a supply shortage, but voters focus on interest rates and investors. Politicians thus champion demand-side fixes and investor bans that are politically popular but have only a marginal impact on the structural problem.

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Both Democrats and Republicans avoid the boring, complex solutions to inflation—like housing density, healthcare reform, and aggressive antitrust. Instead, they opt for politically palatable but ineffective measures like tariffs (Republicans) or short-term subsidies (Democrats), ensuring the core problems remain unsolved.

The most effective way to lower housing prices is to increase supply. Instead of artificially freezing rents, which discourages investment, policymakers should remove regulations that make building new units difficult. More construction creates more competition, which naturally drives down prices for everyone.

Political actions like Trump's proposed "Landlord Lockout" target a symptom (Wall Street buying homes) but ignore the root cause of the housing crisis: a critical shortage of supply. The real solution requires a massive, coordinated national effort to build millions of new homes quickly.

Politicians favor demand-side housing policies because it's easier to blame a villain (e.g., corporations) and offer a quick fix (e.g., lower rates). Addressing the root cause—a lack of supply—is a slow, multi-year process that doesn't fit into election cycles.

As articulated by Donald Trump, the political goals of making housing affordable (increasing supply) and protecting existing home values are in direct conflict. Since homeowners are a massive voting bloc, politicians avoid policies that would lower prices, like deregulation, creating a permanent affordability crisis.

The housing crisis persists because its core issue—a lack of supply—is invisible. Unlike a tangible disaster, people don't see the communities that were never developed. This makes it harder to generate the urgency and political will needed for a solution.

The core of the housing affordability crisis is a structural lack of supply for entry-level homes and workforce rentals. Even with ideal policy interventions today, the time required for development means meaningful relief is at least 18-24 months away. There are no quick fixes that can address this underlying problem.

Politicians at all levels actively restrict housing supply through zoning and other policies. This is not incompetence, but a deliberate strategy to protect and inflate property values, which satisfies the large and reliable homeowner voting bloc, ensuring re-election at the expense of renters and future buyers.

The core of the affordability crisis plaguing American families is a national shortage of 3-4 million housing units, particularly for middle-income workers and first-time buyers. This is not just a collection of local zoning issues but a macroeconomic problem that directly impacts consumer sentiment and economic well-being.

The administration's key housing initiatives, such as having Fannie/Freddie purchase $200B in MBS and banning institutional buyers of single-family homes, are designed to slightly lower mortgage costs and address political narratives. They are not structural solutions capable of fixing the fundamental undersupply of housing that drives the crisis.