“Affordability is front and center for Americans across the country who are feeling the strain of rising housing costs,” said Sarah Brundage, president and CEO of the organization. National Association of Affordable Housing Lenders (NAAHL), said a statement released before the State of the Union address.
“Increasing home ownership is a goal worth fighting for. But more than one-third of American households rent, and their ability to afford a stable home is equally important to a strong workforce and a thriving economy. A productive housing agenda helps everyone, renters and current and future homeowners alike.”
Shannon McGahn, chief advocacy officer National Association of Realtorsechoing what was expected to be the theme of the speech: “housing affordability has emerged as one of the few bipartisan issues in Washington.”
Housing prices
The president talked about inflation and tax cuts, but he only talked about mortgage rates. “Low interest rates will solve the housing crisis that Biden created while at the same time protecting the values of those people who already own a house, who are feeling really rich for the first time in their lives. We want to keep those values high. We’re going to do both,” Trump said.
The president could highlight how much mortgage rates will improve in 2026. Mortgage rates fell this week to their lowest level since September 2022, according to the report. HousingWire‘s Center for Real Estate Ratings. And monthly mortgage payments fell 7.5% year over year in December, according to the Mortgage Bankers Association (MBA).
Mortgage refinance applications also increased 132% year-over-year during the week ending February 13, the MBA reported, a sign that homeowners are locking in lower rates and saving thousands of dollars annually. And while single-family property growth has slowed in recent months, it’s still up 9% from last year, indicating that buyers in many parts of the country have more options and less competition.
In January, Trump targeted government-sponsored enterprises (GSEs) Fannie Mae again Freddie Mac buying $200 billion in mortgage-backed securities in an effort to boost housing prices.
To prevent large investors
The president spoke of a woman in the audience as an example of how buyers must compete with large institutional investors, saying she lost 20 different homes to institutional investors who paid all the money. Trump signed an executive order in January barring institutional investors from buying single-family homes, even though industry experts noted that corporate home buyers represent about 2% of all home sales.
“Now I’m asking Congress to make that ban permanent, because homes are about people, not companies,” Trump said Tuesday night.
Migration and housing
While Trump spent time talking about illegal immigration, he didn’t talk about it in the context of housing. Last year, the Trump administration barred non-citizens from getting loans Federal Housing Administration (FHA) as it wanted to ensure that financial services were directed to US citizens.
Administration officials also scrapped the Obama-Affirmatively Furthering Fair Housing Act, a law originally intended to expand the Fair Housing Act but deemed “onerous” by Trump officials.
Costs
At the beginning of his speech, Trump presented the Supreme Court decision against the tariffs that he imposed in April 2025. Trump’s “Independence Day” started a global tariff on many imported products, including important construction materials such as steel, lumber and aluminum. Home builders argued for exemptions, some of which were successful. But the actual cost of the taxes remains uncertain, according to a report by Center for American Development predicting $17,500 in additional new home construction costs due to tax policies.
I Supreme Court he dismissed the rates last week, saying the president exceeded his authority by establishing them under a law intended for national emergencies.
Trump on Tuesday called it a “bad decision” and vowed to keep the tariffs in place.
“The good news is that almost every country and company wants to keep the deal we’ve already made, knowing that the legal power I have as president to make a new deal would be very bad for them,” Trump said.
Bipartisan housing legislation
Housing issues may have been overlooked during the State of the Union address, but housing groups like the NAAHL say they’re ready to work on joint housing legislation being considered by Congress, including The Senate‘s ROAD to Housing Act and The house‘s Housing for the 21st Century Act.
“Additionally, Congress should adopt the Home Investment Act, which will immediately help encourage the construction and renovation of affordable starter homes for owner occupancy,” Brundage said. “These bills are widely supported. What they need now is urgency.”
