Trump Vows to Reduce Home Prices With ‘Aggressive‘ Housing Plans

The president suggested that increased illegal immigration under the previous administration has significantly contributed to rising home prices.

A "For Sale" sign is posted beside property for sale in Alhambra, Calif., on Aug. 28, 2025. Frederic J. Brown/AFP via Getty Images

WASHINGTON—In a televised address to the nation on Wednesday, President Donald Trump promised to introduce a housing reform to bring down home prices.

“I will announce some of the most aggressive housing reform plans in American history,” Trump said.

He accused President Joe Biden of driving up inflation, making the American Dream out of reach for many people.

“The yearly cost of a typical new mortgage increased by $15,000 under Democrat rule,” Trump said, adding that mortgage costs have come down by $3,000 since he took office in January.

The president also said he would announce the new Federal Reserve chairman, who supports lower interest rates. He said mortgage rates will fall further as interest rates decline under the new leadership of the central bank.

Trump also suggested that increased illegal immigration under Biden has significantly contributed to rising home prices.

“The worst thing that the Biden administration did to our country is the invasion at the border. ... Over 60 percent of growth in the rental market came from foreign migrants,” Trump said.

“For the first time in 50 years, we are now seeing reverse migration as migrants go back home, leaving more housing and more jobs for Americans.”

Housing affordability remains a top concern for many Americans. Since the start of the COVID-19 pandemic, housing costs have skyrocketed, with median home prices rising 55 percent, according to the National Association of Home Builders, and rents surging more than 35 percent nationwide, according to Zillow.

Affordability of homeownership has become a growing concern, especially for first-time buyers. Borrowing costs also shot up in 2022 after the Federal Reserve raised interest rates to combat inflation. Today, average 30-year fixed mortgage rates hover around 6 percent.

According to the National Association of Realtors (NAR), housing shortage is the number one reason for lack of affordability in the housing market. The institution estimates that there’s a shortage of 4.7 million homes nationwide.

The housing problem is mainly driven by high mortgage rates and a persistent shortage of homes, particularly for low-income families. Experts point to years of under-building, restrictive zoning laws, regulatory hurdles, and high mortgage rates as the main factors behind the country’s affordability problem.

The typical age of first-time buyers climbed to 40 in 2025—the highest on record and up from 31 in 2014, according to a report by The Center for American Progress.

“I inherited a mess, and I’m fixing it,” Trump said in his address. “When I took office, inflation was the worst in 48 years, and some would say in the history of our country, which caused prices to be higher than ever before, making life unaffordable for millions and millions of Americans.”