Potential National Housing Emergency Under Discussion
U.S. Treasury Secretary Scott Bescent recently spoke in a morning interview, highlighting a range of topics including President Donald Trump’s meeting with Vladimir Putin and updates on U.S.-China trade discussions, as well as addressing the ongoing affordable housing crisis in the nation.
On Monday, Bescent indicated that the administration is contemplating the declaration of a national housing emergency to tackle the challenges of soaring home prices and a dwindling housing supply. “We may declare a national housing emergency in the fall,” he mentioned during an interview on Labor Day.
Bescent emphasized that a reduction in interest rates by the Federal Reserve could help decrease home prices. However, he also acknowledged that there might be other approaches the administration could consider to enhance housing supply and alleviate some costs.
He expressed a desire to tread carefully: “We’re trying to figure out what we can do, and we don’t want to step into government businesses at the state, county, or city level. I think it’s all on the table,” he stated.
While Bescent is cautious about some proposed enforcement actions that President Trump might consider following such a declaration, he revealed that officials are evaluating ways to standardize local building and zoning codes and look at strategies to reduce closure costs.
Bescent also mentioned potential tariff exemptions on construction materials to help mitigate expenses. This comes amidst volatility in timber costs, largely due to the Trump administration’s current tariff policy and its impact on wood imports from Canada.
The National Association of Home Builders (NAHB) noted a 5.8% increase in composite prices for framing wood year-on-year, even as timber futures remain 19.1% higher than the previous year. In July, the Department of Commerce announced significant increases in offsets on Canadian softwood lumber, which has raised the total duties applied from 14.4% to 35.2%.
Another construction material subject to customs scrutiny is plaster, commonly imported from Mexico, which is essential for drywall manufacturing.
