WASHINGTON — In one of a string of executive orders signed in the past week, President Trump has ordered all executive departments of the U.S. government to “deliver emergency price relief” to Americans.
Housing was specifically mentioned in the order, among other things like healthcare and home appliance costs. Trump blamed regulation as a reason for why housing prices are historically high, at least in part, saying regulatory requirements account for 25% of the cost of a constructing a new home, citing a recent analysis from University of Chicago economist Casey Mulligan.
The order goes on to say that “regulatory oppression from the Biden administration is estimated to have imposed almost $50,000 in costs on the average American household. It is critical to restore purchasing power to the American family and improve our quality of life.”
It then says that within the next 30 days, the “Assistant to the President for Economic Policy shall report to (Trump) and every 30 days thereafter, on the status of the implementation of this memorandum.”
In December, housing prices hit a median of $404,400, just shy of the all-time high of $407,500 seen in June. Prices are up in all U.S. regions: +11.8% in the Northeast at $478,900; +9% in the Midwest at $298,600; +3.4% in the South at $361,800; and +6% in the West at $614,500. Mortgage rates currently sit at an average of 6.96%, similar to last year’s 6.69%.
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