Treasury Secretary Scott Bessent recently revealed that President Trump is considering declaring a housing emergency to address the ongoing affordability crisis in the United States. Such a declaration would be an unprecedented move, as federal emergencies are typically reserved for natural disasters or pandemics.
The urgency of the housing crisis is underscored by data showing that from 2010 to 2022, home prices increased by 74%, while wages only rose by 54%. This disparity has weakened consumer purchasing power. Additionally, rising interest rates, local property taxes, and insurance premiums have exacerbated the situation.
Housing remains a crucial means for Americans to build wealth and achieve the American dream. However, recent polling by The Wall Street Journal indicates this aspiration is becoming increasingly unattainable for many. "Mr. Trump is right to consider aggressive action on this issue," said Rep. Mike Flood, who supports the idea of an emergency declaration as a potential solution.
Flood emphasized that increasing housing supply is essential to reducing costs. He criticized demand-side solutions for merely subsidizing some renters and buyers at others' expense without addressing underlying issues. He advocates for building more homes, rehabilitating old ones, and promoting innovative construction methods.
Flood identified four regulatory factors he calls the "Four Horsemen of the Housing Apocalypse" that drive up housing costs: environmental reviews delaying projects, Davis-Bacon requirements increasing labor costs, Section 3 requirements complicating contractor hiring, and "Build America, Buy America" policies raising material costs.
He mentioned ongoing efforts in Congress to address these issues within programs like the HOME Investment Partnerships Program at the Department of Housing and Urban Development (HUD). Flood also expressed his eagerness to see how President Trump's administration will tackle these regulatory challenges to improve housing affordability.
Rep. Mike Flood serves on the House Financial Services Committee and chairs both the Housing and Insurance Subcommittee and the Republican Main Street Caucus.
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