Affordability as a political pillar: Trump’s 2026 midterm focus on making homeownership accessible

• Treasury Secretary Scott Bessent suggests President Trump may declare a national housing emergency this fall.
• Elevated mortgage rates and record-high home prices are making homeownership unaffordable for many.
• Possible tariff exemptions, standardizing codes and decreasing closing costs are being considered.
• Secretary Bessent predicts a significant economic uptick in 2026.
• Trump aims to make “affordability” a key pillar of the 2026 midterm election platform.

As working-class Americans face one of the worst housing affordability crises in a generation, Treasury Secretary Scott Bessent hinted recently that President Donald Trump may declare a national housing emergency this fall. Bessent, in an exclusive interview with the Washington Examiner, outlined the administration’s plans to address the growing affordability gap through a potential emergency declaration, emphasizing the goal of making homeownership more accessible.

Navigating the affordability crisis: A national housing emergency?

The housing market today is grappling with dual challenges: elevated mortgage rates and record-high home prices. These factors have sidelined many aspiring homeowners, particularly from the working class, who are finding it increasingly difficult to afford the American dream. Treasury Secretary Scott Bessent emphasized the urgency of the situation, noting that the administration is exploring various measures to tackle this crisis. “We may declare a national housing emergency in the fall,” Bessent stated, adding that the decision is still under discussion.

The administration’s approach aims to address both supply and demand constraints in the housing market without overstepping the authority of state and local governments. Standardizing building and zoning codes, lowering closing costs and considering tariff exemptions for construction materials are among the options being evaluated. These actions are designed to reduce the financial barriers that currently deter many from entering the housing market.

Economic outlook for 2026: A turning point?

Despite the current affordability crisis, Treasury Secretary Bessent remains optimistic about the economic outlook for 2026. He predicted a significant economic uptick, attributing this to a combination of anticipated Federal Reserve interest rate cuts and the Trump administration’s efforts to boost the housing market. Bessent highlighted the “No Tax on Tips” provision, part of the One Big Beautiful Bill Act signed into law on July 4th, as an example of how the administration is working to benefit small businesses and individuals. “This very, very, very nice young lady here, who’s had this restaurant for 32 years, she’s going to get a large tax refund of the ‘No Tax on Tips,’” Bessent said, pointing to the restaurant’s owner as an example of how the measure will benefit small business owners across the country. This economic optimism forms a cornerstone of Trump’s 2026 midterm election platform.

A mandate of affordability: Advancing the political agenda

With the 2026 midterms approaching, the Trump administration is positioning “affordability” as a key pillar of its political agenda. By making homeownership more attainable, the administration aims to rebuild the middle class and restore the dream of homeownership for many Americans. Bessent noted that the administration is considering a range of options, from policy changes to executive actions, to achieve this goal. However, he was quick to emphasize the limits of federal intervention, stating that the administration does not want to overstep its bounds by entering the business of states, counties and municipal governments.

In addition to these measures, the Trump administration is also looking to boost housing supply through efforts to restore law and order in crime-ridden, Democrat-controlled cities. By reducing lawlessness, the administration hopes to free up housing stock and make homes more accessible. The administration’s strategy also includes removing illegal aliens from federal housing assistance programs to ensure that federal funds are allocated more efficiently.

Charting a new path forward

As the housing affordability crisis continues to challenge American families, the possibility of a national housing emergency declaration looms large. Secretary Bessent’s comments underscore the administration’s commitment to addressing this critical issue and restoring the dream of homeownership for many Americans. While the exact measures remain under consideration, the administration’s efforts are aimed at boosting supply, reducing costs and ensuring that federal policies support rather than hinder the housing market. As 2026 approaches, the success of these efforts will be crucial in determining the trajectory of the housing market and, by extension, the broader economy.

By acting now, the administration aims to make homeownership more attainable and strengthen the middle class, ultimately contributing to a more prosperous and stable future for all Americans.

Sources for this article include:

ZeroHedge.com

WashingtonExaminer.com

X.com