Donald Trump’s second-term victory was fueled by voter frustration over rising prices, but a looming housing crisis threatens to derail his presidency, Washington Post columnist Heather Long warned in a recent analysis.
“The housing crisis is real,” Long wrote. “It’s one of the worst times to buy a home in 40 years. The median home price is now $420,000, nearly $100,000 more than four years ago. Mortgage rates have also been up significantly since 2020. And nearly everyone agrees that the United States is short millions of homes.”
While Trump has repeatedly promised that Americans will be able to secure mortgages at a 2 percent APR under his leadership, the reality has been starkly different. Mortgage rates have surged to nearly 7 percent, a trend fueled by bond market anxiety over potential inflation and higher construction costs driven by Trump’s tariffs on materials.
High housing costs have become a persistent issue for Americans. “High housing costs have become part of the economic ‘vibes’ — alongside gas and grocery prices — that people see on a regular basis,” Long observed. “It’s easy to check housing apps for the latest prices. People who own their home and have a low mortgage rate feel stuck, and people who haven’t been able to buy yet worry they will never be able to own now.”
Trump’s proposed solutions to the crisis have sparked skepticism. His idea to build futuristic “freedom cities” on federal land, first floated in 2023, lacks detail and progress. Meanwhile, his opposition to higher-density suburban development and plans for mass deportations could worsen labor shortages and increase construction costs, further exacerbating the crisis.
Long contrasted Trump’s approach with that of Vice President Kamala Harris, who had campaigned on building five million new homes, a plan aimed at addressing the supply shortage directly. Long argued that Trump’s policies risk amplifying inflation, undermining the economic trust voters placed in him.
“Solving the housing crisis requires lower mortgage rates and building more homes,” she concluded. “Trump can yell at the Fed for lower rates, but the bond market is what will move mortgage rates up or down. Right now, the bond market is watching every Trump move for signs of inflation and largesse. And so far, that’s what it sees.”
With housing prices and mortgage rates soaring, the frustration of American voters may soon shift from inflation at the grocery store to a crisis unfolding in the housing market — one that could define Trump’s presidency.