America Urgently Needs a New Affordable Housing Agenda

July 10, 2025

President Trump's housing policies are exacerbating an already broken system through protectionist trade wars, targeting immigrant construction workers, and considering privatizing Fannie Mae and Freddie Mac. His proposed budget would cut federal rental assistance by approximately 40% while shifting remaining funds to states as block grants, which critics argue could dramatically increase homelessness. Instead of focusing on software bans or other superficial solutions, experts suggest addressing the root causes of the housing crisis through an "abundance agenda" that reforms zoning restrictions, streamlines permitting processes, and prioritizes increasing housing supply.

Who is affected

Renters, particularly the nearly half who spend more than a third of their income on housing
Working families who can no longer afford to live in certain areas
Underserved communities who would bear the brunt of economic crashes
Americans who rely on federal rental assistance
Immigrant communities in the construction workforce
Potential homebuyers in a destabilized mortgage market

What action is being taken

President Trump is "giving very serious consideration" to taking Fannie Mae and Freddie Mac public again
Trump is implementing protectionist trade wars that are driving up lumber prices
Trump is targeting immigrant communities who comprise a vital part of the construction workforce
Democratic Governor Jared Polis recently vetoed a bill to ban rent-pricing software
Trump's administration is proposing to cut federal rental assistance by about 40% and convert remaining funds to state block grants

Why it matters

Trump's housing policies could lead to an economic and humanitarian disaster similar to the 2008 housing crisis
Privatizing Fannie Mae and Freddie Mac could recreate the reckless incentives that crashed the global economy
Cutting rental assistance by 40% could cause unprecedented escalation in homelessness
The approach risks deepening inequality and creating a "housing apartheid"
The root causes of the housing crisis (shortage of Section 8 vouchers and affordable units) remain unaddressed
Working Americans' housing stability, economic stability, and America's inclusive future are at stake

What's next

No explicit next steps stated in the article

Read full article from source: The San Diego Voice & Viewpoint