Amid Tariffs, Deportations, and Program Cuts, America's Housing Affordability Crisis Worsens

The housing affordability crisis in America has grown more dire in recent years. Only about 35% of Americans under 35, and 65% of all Americans own homes, and that number is at an all time low (NYT). With fewer people able to afford homes, and more money being spent on rent, people are struggling to afford groceries and other necessities.

The growing housing affordability crisis has been exacerbated by the Trump Administration. With reckless policies like tariffs, deportations, cuts to housing affordability programs, and the 50-year Mortgage, residential construction has stalled, and housing prices have surged. Tariffs on everyday goods have increased the cost of living in the US, and with more money spent on groceries and other necessities there is less money to spend on housing. Additionally, the high tariffs on building materials raise the price of building which is passed on to American families through the higher price of homes. Furthermore, the detention and deportation of undocumented immigrants, and ICE’s enforcement actions have created fear and unease among immigrant workers, heightening the already severe labor shortage, and slowing the pace of the construction industry. According to National Public Radio (NPR) “For years, the construction industry — in which on average one in three workers is foreign-born — has struggled with a yawning labor shortage that President Trump's immigration crackdown is making worse.”

Proposed cuts to housing affordability programs such as housing choice vouchers, public housing, project based rental assistance, Section 202 (housing assistance for the elderly), and Section 811 (supportive housing for people with disabilities) will force 170,000 people who are currently stably homed back into homelessness (National Homelessness Law Center).

Finally, one of Trump's more recent proposals to increase housing affordability is the 50-Year Mortgage. Trump claims spreading the payment out across 50 years instead of the traditional 15 or 30 years will lower monthly payments and make it easier to get into the housing market. On the contrary, many experts illustrate that while monthly payments would be lower, the 50-year mortgage will saddle families with more interest, longer loans, and less equity. Senior Economist Joel Berner said, “The ‘savings’ from 50-year mortgages may be totally negated by rising home prices.” On top of that, a borrower with this loan would likely have a higher interest rate and, as a result, pay significantly more over the life of the loan. Berner said he estimates that a hypothetical 50-year fixed-rate borrower would pay 86% more in interest than a 30-year fixed-rate mortgage borrower, and have over 10% less in home equity after a decade of homeownership. “This is not the way to solve housing affordability. The administration would do better to reverse tariff-induced inflation, which is keeping the rates on existing mortgages high, and to encourage the expansion of housing supply by promoting homebuilding.”