U.S. homebuilding shares may attract renewed focus on Tuesday after Treasury Secretary Scott Bessent revealed that the Trump administration is exploring the possibility of declaring a national housing emergency this fall.
“We may declare a national housing emergency in the fall,” Bessent told the Washington Examiner, adding that the White House is evaluating ways to improve affordability without encroaching on state and local authority.
“We’re trying to figure out what we can do, and we don’t want to step into the business of states, counties, and municipal governments.”
Such a declaration would put a spotlight on housing as a central issue ahead of the 2026 midterm elections. Bessent emphasized that affordability will be a key element of the Republicans’ campaign platform, though he did not outline concrete measures.
Ideas being discussed include standardizing local zoning and building codes as well as lowering closing costs for buyers.
Investors will be closely monitoring homebuilder stocks such as D.R. Horton (NYSE:DHI), PulteGroup (NYSE:PHM), NVR (NYSE:NVR), Lennar (NYSE:LEN), LGI Homes (NYSE:LGIH), and KB Home (NYSE:KBH). These companies could benefit if federal initiatives increase construction activity or reduce obstacles for prospective homeowners.
President Donald Trump has previously leveraged emergency declarations to bypass Congress, a strategy that has faced legal scrutiny. Meanwhile, housing affordability has become more challenging due to elevated interest rates.
With pressures on affordability intensifying since the pandemic, the White House appears poised to place housing at the forefront of its economic agenda.
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