Federal authorities deliberate on a nationwide housing crisis declaration, as per Treasury's Bessent's statement

The Trump administration is considering declaring a national housing emergency in the fall, according to Treasury Secretary Scott Bessent. This declaration, if made, is intended to address high housing prices and limited inventory in the market.

The potential tariff exemptions being considered by the administration could significantly impact the future of US home building. For instance, Canadian lumber, subject to an anti-dumping tariff of 20.6%, brings the total rate applied to Canadian lumber to 35.2%, up from 14.4%. The Commerce Department has also more than doubled countervailing duties on Canadian softwood lumber imports from 6.74% to 14.63%.

These tariffs could affect other construction materials as well. Lumber futures, despite recent declines, were 19.1% higher than a year ago. The price of gypsum, used in drywall, may also be affected, as it is largely imported from Mexico.

Secretary Bessent has suggested that the administration may consider tariff exemptions for certain construction materials to help reduce construction costs in the housing sector. He also mentioned the possibility of decreasing closing costs as part of the potential response to a national housing emergency.

Officials are evaluating ways to standardize local building and zoning codes as part of the potential response to a national housing emergency. This could help increase housing supply and reduce prices. The National Association of Home Builders (NAHB) reported these findings.

Scott Bessent believes that interest rate cuts by the Federal Reserve could help lower housing prices. He, however, stated that they do not want to interfere with the responsibilities of states, counties, and municipal governments.

The Trump administration is considering ways to use a national housing emergency to boost housing supply and reduce prices. The details of the executive actions that President Donald Trump could take if the White House declares a national housing emergency remain unspecified by Secretary Bessent.

Lumber costs have been particularly volatile this year due to the Trump administration's tariff policies, including those on U.S. imports of Canadian lumber. As of the week ending Aug. 22, the composite price of framing lumber was up 5.8% year-over-year.

The potential declaration of a national housing emergency and the measures being considered by the Trump administration could have significant implications for the US housing market. As more information becomes available, it will be important to monitor these developments closely.

Federal authorities deliberate on a nationwide housing crisis declaration, as per Treasury's Bessent's statement