Trump Calls for Action from Fannie Mae and Freddie Mac to Boost Housing Construction
In a bold move, U.S. President Donald Trump has accused leading homebuilders of purposefully stalling housing construction. During an October 5, 2025, statement, he urged mortgage giants Fannie Mae and Freddie Mac to intervene and incentivize builders to resume projects. Trump emphasized that it was time to “help restore the American Dream,” highlighting the current financing opportunities available to developers.
Trump Compares Homebuilders to OPEC
Trump drew significant attention with his comparison of homebuilders to the oil cartel OPEC, suggesting that they are manipulating the housing market. “They’re sitting on 2 million empty lots. I’m calling on Fannie Mae and Freddie Mac to get Big Homebuilders moving,” he stated on Truth Social, aiming to stimulate housing development. He described the builders as vital to America’s prosperity and insisted they utilize the financing now accessible to them.
This comparison is notable in the context of Trump’s ongoing campaign for housing affordability, a central theme as he seeks to address the struggles of American families facing soaring mortgage rates and escalating rents.
Urging Fannie Mae and Freddie Mac to Take Charge
Trump reiterated his plea for the involvement of Fannie Mae and Freddie Mac in galvanizing housing developers. He suggested that these agencies should leverage federal support and financing programs to rejuvenate construction activities. This advocacy aligns with his “American Dream Restoration” initiative, launched in January 2025 via executive order, which aimed to expand housing supply and alleviate pricing pressures.
However, analysts caution that Fannie Mae and Freddie Mac may not have the authority to dictate construction timelines. Their primary functions are centered around mortgage lending and enhancing market liquidity, rather than overseeing development projects.
Backlash from Housing Experts
Trump’s comments have garnered scrutiny from housing experts. Economist Bryan Caplan from George Mason University and a supporter of the YIMBY (“Yes In My Backyard”) movement labeled the OPEC analogy as “bizarre.” Caplan pointed out that the U.S. homebuilding scene consists of myriad firms eager to build but consistently hindered by bureaucratic hurdles rather than corporate greed.
The National Association of Home Builders (NAHB) acknowledged the significance of affordability but cautioned against oversimplifying the housing dilemma. “President Trump is correct to spotlight housing affordability… Achieving that goal will necessitate collaboration between builders and the administration to navigate the mixed government obstacles that delay new construction,” the NAHB stated.
The association further noted that Trump’s prior tariffs and stringent immigration policies have contributed to increased construction costs by elevating material prices and reducing labor availability.
Is There Really a Housing Shortage in the U.S.?
The current housing landscape is complex. According to Redfin, the inventory of homes for sale increased by 10.6% in August 2025 compared to the previous year. However, home sales decreased by 2.6%, and prices continued to rise, with the average new home exceeding $500,000.
A September 2025 survey conducted by NAHB and Wells Fargo indicated that 64% of single-family builders reported a low supply of lots, with 26% indicating it was “very low”. Experts contend that this disparity is largely tied to zoning and permit delays rather than a deliberate withholding of land.
Caplan emphasized that financial resources are not the primary concern. “Everyone has access to Fannie and Freddie, so the issue isn’t financing, but rather the freedom to build,” he argued.
Conclusion
Trump’s call for increased involvement from Fannie Mae and Freddie Mac highlights a growing anxiety surrounding housing affordability in the U.S. As he continues to advocate for housing reforms, the effectiveness of his strategies to spur construction and alleviate the housing crisis remains uncertain. The complexities surrounding housing development underscore the need for a multifaceted approach to ensure future accessibility for American families.
