Trump Criticizes Homebuilders for Stalling American Dream with 2 Million Vacant Lots
In recent statements on Truth Social, former President Donald Trump criticized major homebuilders, likening their behavior to that of OPEC. He expressed concern over the large number of vacant lots across the country, estimating that around 2 million lots are not being utilized. Trump called for action from Fannie Mae and Freddie Mac to encourage homebuilders to increase construction, thus helping to restore the American Dream.
Trump’s Critique of Homebuilders
Trump’s comments reflect a populist sentiment that suggests homebuilders are deliberately holding back housing supply, contributing to rising home prices. He urged these builders, whom he referred to as “his friends,” to take action. This perspective aligns with movements advocating for increased housing supply, like the “Yes In My Backyard” (YIMBY) initiative, which seeks to alleviate housing restrictions.
Expert Opinions on Housing Regulations
Economists like Bryan Caplan, a noted advocate for deregulation, argue that the issues surrounding housing supply are more complex than Trump’s assertion. Caplan argues that regulatory challenges and local zoning laws, rather than builder greed, are the main obstacles to increasing housing availability.
Caplan notes that comparing homebuilders to OPEC is inaccurate. He points out that the U.S. housing market consists of many competing builders who often face bureaucratic barriers. In fact, according to a recent NAHB/Wells Fargo survey, about 64% of single-family builders report low availability of buildable lots.
Statistics on Housing Supply
| Year | Percentage of Builders Reporting Lot Shortage |
|---|---|
| 2021 | 76% |
| 2023 | 64% |
This ongoing shortage is particularly concerning, as home starts have remained below 1.5 million annually in recent years. Historically, prior to the 2008 financial crash, only 53% of builders reported a lot shortage. The current landscape presents a stark contrast, indicating ongoing barriers to construction.
The Role of Local Governments
Caplan argues that local regulations play a critical role in exacerbating the housing crisis. In cities like San Francisco, lengthy permit approval processes hinder development significantly. Conversely, states with fewer regulations, such as Texas, have seen a marked increase in new home construction.
Trump’s appeal to Fannie Mae and Freddie Mac to stimulate the construction of homes may have limited effectiveness, as local governments retain significant control over approvals. Caplan believes that while Trump’s focus on housing is a positive sign, real change requires confronting regulatory challenges.
In conclusion, addressing the housing shortage will necessitate a shift in focus from blaming builders to tackling the root causes, including zoning regulations and local governance. As the housing crisis continues, it remains crucial for policymakers to engage in meaningful dialogue about fostering a healthier housing market.
