Gavin Newsom’s housing changes align with Trump’s deregulation efforts

Gavin Newsom's housing changes align with Trump's deregulation efforts

California Governor Gavin Newsom is prioritizing affordability, especially housing costs, as he hints at a possible 2028 presidential run. This pivot comes at a time when rising housing expenses have presented challenges for Democrats, and it somewhat aligns with elements of former President Donald Trump’s housing policies ahead of the midterms.

Newsom’s notable housing reforms in California emerged before Trump’s executive order in March 2026 aimed at addressing regulatory barriers. Despite the timing, both leaders share similar concepts: expediting approvals, reducing regulatory obstacles, and encouraging more housing construction.

Economist Peter St. Onge commented on this alignment, suggesting it’s a familiar pattern where Democrats, initially resistant to free-market principles, eventually adapt when political pressures arise. “It’s interesting to see Newsom focusing on ideas that Trump has promoted for years,” he remarked. However, the effectiveness of Newsom’s reforms remains to be seen, especially in light of California’s slow recovery from recent disasters like the Palisades fire, where construction remains stagnant due to regulatory challenges.

After a successful showing in the 2025 elections, where affordability was a key theme, Newsom pushed forward a housing package in June 2025 that sought to exempt specific projects from the California Environmental Quality Act (CEQA) and streamline the environmental review process. He also limited certain appeals and paused new residential building standards through 2031. Following this, he took further steps in July to simplify financing and review processes for affordable-housing projects.

A spokesperson for Newsom asserted that California is making significant strides through these reforms, contrasting with Trump’s approach, which they described as ineffective, claiming his policies have driven up prices and hindered building supply.

Trump, on the other hand, has been focused on dismantling regulatory barriers at a federal level, initiating policies to speed up housing projects and encourage local governments to ease construction restrictions. His administration’s economic report has also suggested specific state and local reforms to bolster housing availability.

White House spokesperson Davis Ingle highlighted Trump’s commitment to making housing more affordable, emphasizing actions like prohibiting large firms from buying single-family homes and pushing for lower mortgage rates. This contrasts with Newsom’s approach of targeting urban density, focusing more on apartments and reducing suburban sprawl.

Economist John Gibbs pointed out that states and local administrations hold the primary authority over housing policies. While Newsom leverages state power to push for more housing, Trump’s influence circulates around federal financial mechanisms and regulations.

Glock, a senior fellow at the Manhattan Institute, noted contrasting strategies between the two leaders. He mentioned that Newsom’s initiatives often include stipulations that could lead to higher housing prices, such as union labor requirements, whereas Trump’s policies aim to mitigate these constraints.

Ultimately, both Newsom and Trump are presenting different strategies to address housing affordability, reflecting varied philosophies on how best to tackle challenges in the housing market.

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