New Initiative to Enhance Housing Affordability
A new initiative titled “Make Housing Great Again” has been introduced, spearheaded by conservative influencer Benny Johnson along with the America First Policy Institute (AFPI). This plan aims to make housing more accessible for Americans.
In November, Johnson and AFPI launched the initiative, enlisting former HUD Secretary Ben Carson and developer Michael Berkentine as advisors. AFPI stated that choosing Johnson as the initiative’s co-chair and spokesperson was due to his appeal to supporters and his personal investment in the subject as a young father. This week, they outlined a list of policy goals aimed at making homeownership more attainable.
The initiative recognizes an alarming trend: home prices have surged by 167% over the last fifty years, putting significant strain on affordability. The policy white paper from the MAGA Housing Initiative asserts that the dream of homeownership is being postponed for many. It advocates for a “pragmatic approach” to tackle the affordability crisis, suggesting measures to increase housing supply, provide immediate relief to buyers, and ultimately help Americans secure their own homes.
Promoting deregulation at local levels and reducing construction costs are among the key focus areas. Other goals include implementing tax incentives for first-time buyers, enhancing economic “opportunity zones,” and curbing foreign demand in the housing market.
Currently, there’s a disconnect between rising home prices and wage growth. For instance, median household income in the U.S. rose by 99.7% from 2000 to 2024, while the median sales price for single-family homes increased by 150.1% in the same period. It’s noteworthy that the average age of first-time homebuyers has now reached 40, up from 33 just a few years back.
The MAGA Housing Initiative attributes the housing supply issue to excessive regulations, high mortgage rates, and increasing debt burdens among younger generations. It emphasizes a supply-side deregulation approach and introduces financial incentives aimed specifically at local governments. The initiative suggests that linking federal housing benefits with local deregulatory efforts through HUD might motivate communities to boost housing availability.
Furthermore, to encourage deregulation, the initiative proposes that the Trump administration offers benefits to builders and buyers. This includes establishing the Working Families Housing Fund, which they refer to as the TRUMP Fund. This fund would support middle-income and working-class families with median incomes between 80% and 120%, but communities would have to demonstrate efforts to reduce building barriers for participation.
Increasing the number of skilled trades workers is another strategy to lower construction costs. The construction industry currently faces a significant labor shortage, with an estimated need for nearly 723,000 new workers each year to close a nationwide housing gap of 1.5 million units. The report stresses the importance of enhancing interest in skilled trades and lowering entry barriers to grow the workforce needed for construction.
The initiative also contains plans for a revamped version of “opportunity zones,” featuring advanced benefits for homes constructed in specific communities that meet affordability guidelines. Other policy suggestions include tax-advantaged savings plans for potential buyers and a new fixed-rate mortgage option for first-time homeowners supported by HUD.
An additional focal point of the initiative is to limit foreign investment in U.S. housing. The MAGA Housing Initiative’s white paper reveals that foreign buyers spent $56 billion on homes in the past year, with a significant portion purchased as vacation properties or rentals. These buyers often pay in cash, further intensifying competition for domestic buyers.
To shield young homebuyers from predatory lending practices, the initiative calls for legislative changes that would set a cap on annual percentage rates (APR) on various loans, similar to protections already in place for military personnel.
Johnson expressed concern about the grim reality facing younger generations: “The average age to buy a first home is now 40, which is beyond the ideal time to start a family. This is not just about homes; it’s about the survival of our culture. The American Dream is diminishing, and we owe it to future generations to recover it.”
