The Secret Reason Trump Wants to Keep Home Prices High
President Donald Trump is focused on home buying this year, but there’s one area he doesn’t want to touch: high home prices.
Many housing experts agree that one of the main factors that could drive greater affordability is increasing supply. High inventory levels often result in slower home price growth, which increases home affordability over time. However, more innovation will lower prices at home overall, an outcome Trump seems to be unwelcome.
During a January 29 meeting, Trump told his cabinet that homeowners are richer because their homes are now more valuable than ever, adding that he is reluctant to take any action that would affect those benefits.
“I don’t want to lower housing prices. I want to increase housing prices for people who own their own homes,” he said. “If you make it too easy and too cheap to buy houses, those values go down.”
For some concerned about housing affordability, however, increasing housing availability is not inconsistent with maintaining home values. Jonathan Treble, a Democratic candidate running in Arizona’s congressional primary, says Trump’s comments reflect how out of step he is with many Americans who are struggling to afford a home.
“Adding more affordable housing doesn’t mean that housing prices in other areas will go down,” Treble told Money. “You can do both.”
Trump’s motivation to keep prices high is simple. Home ownership has long been considered one of the best ways to accumulate wealth due to year-on-year appreciation.and current homeowners have benefited from the rapid increase in home prices during the epidemic years.
According to the National Association of Home Builders, home prices rose nearly 55 percent nationwide between the first quarter of 2020 and the third quarter of 2025, with some cities seeing home prices rise as much as 88 percent.
These high prices have led to near-record levels of home equity, St. Louis Federal Reserve estimates the combined value of US housing at over 34 billion dollars. Individual homeowners who still hold a mortgage have about $300,000 in equity on average, according to the most recent data from analytics firm Cotality.
There may also be a political reason for the president to want housing prices to continue to rise.
According to the Pew Research Center, older voters tend to vote Republican, while younger voters tend to favor Democrats. Americans over 55 also have the highest rates of home ownership, according to US Census Bureau data.
With midterm elections scheduled for later this year, some political analysts believe that Republicans may lose control of the House of Representatives, making it more difficult, if not impossible, for Trump to carry out his agenda. According to Kevin Leibowitz, president and CEO of Grayton Mortgage, any negative change in home prices is unlikely to be attractive to homeowners.
“If their home values go down, and it’s seen as a result of the actions or inaction of politicians, the basis for voting will be set,” Leibowitz said. “That won’t help at election time.”
Trump is pushing to lower interest rates
Making home ownership more affordable for consumers remains a top priority for the president. But instead of increasing the housing supply, Trump has focused on lowering mortgage rates to improve affordability.
“The best thing that can happen to both groups of people is lower interest rates,” Trump said during a cabinet meeting. “Lower interest rates keep prices down for people who own homes and allow other people to buy homes.”
Management has already taken steps to reduce prices. In January, Trump ordered his representatives at Fannie Mae and Freddie Mac to buy $200 billion in mortgage bonds, which immediately lowered mortgage rates by about 0.2 percent, leading to the lowest levels in more than a year.
Although current mortgage rates have increased slightly since the initial announcement, they remain nearly a full percent lower than last year. A recent report from online brokerage firm Redfin estimated that monthly mortgage payments dropped by about $125 during that time.
Trump also put pressure on the Federal Reserve to lower the federal funds rate — the interest rate banks charge each other for short-term loans — to lower overall borrowing costs. So far, the Fed has refused.
Even if the central bank were to cut rates, it probably wouldn’t lower mortgage rates. Lenders set their rates based on economic conditions and the Fed’s view of the overall strength of the economy. If the economy weakens and the central bank signals that a rate cut is imminent, that may lower interest rates lower than the actual cut.
The White House has also floated other proposals, including introducing 50-year mortgages to lower monthly payments and allowing homebuyers to withdraw money from their 401(k)s to finance a down payment. But both face significant hurdles before they can be implemented.
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