President Donald Trump is considering declaring a national housing emergency this fall, a move that could elevate affordability concerns to the forefront of U.S. politics ahead of the 2026 midterm elections. Treasury Secretary Scott Bessent confirmed the possibility on Monday, saying the administration is exploring policy options to address the worsening housing crisis.
“We may declare a national housing emergency in the fall,” Bessent told the Washington Examiner. “We’re trying to figure out what we can do, and we don’t want to step into the business of states, counties, and municipal governments. I think everything is on the table.”
If enacted, it would mark the first national emergency declaration on housing since the 2008 financial crisis, when the collapse of the U.S. housing bubble triggered a global downturn. Under the 1976 National Emergencies Act, the president can unilaterally declare an emergency, granting access to more than 130 statutory powers. These can bypass Congress on certain issues, though they remain subject to court challenges and potential repeal by lawmakers.
Trump has leaned heavily on emergency declarations during his presidency, invoking them on issues ranging from immigration to trade. Critics, including legal scholars and Democratic officials, have accused him of executive overreach. Last week, a federal appeals court struck down most of the tariffs Trump imposed under earlier emergency powers, while Democratic state attorneys general are pursuing lawsuits to block his energy-related declarations.
Housing affordability has emerged as a persistent challenge across the U.S. Analysts estimate a shortage of around four million homes nationwide, with deficits particularly acute in major metropolitan areas such as New York and Los Angeles. Supply constraints worsened after the 2008 crash, while the COVID-19 pandemic added labor shortages and supply chain bottlenecks that pushed up construction costs. Rising interest rates have further strained buyers, with monthly payments on median-priced homes climbing nearly 60% between 2020 and 2023.
Experts warn that the problem is compounded by climate risks and the growing role of institutional investors in the housing market. “Now, across the country, prices are five times income in places like Boston … and in the high-cost markets in California, they’re 10 times income,” said Chris Herbert, managing director of Harvard’s Joint Center for Housing Studies.
During his 2024 campaign, Trump pledged to tackle the issue by opening federal land for housing and cutting regulations. Bessent said current discussions include standardizing building and zoning codes, reducing closing costs, and considering tariff exemptions on construction materials.
While the administration has yet to outline specific measures, the potential declaration underscores the political stakes of housing policy. With the midterms approaching, affordability is expected to be a defining issue — and one the White House appears eager to place at the center of the national debate.