Trump considers declaring 'housing emergency': What that would mean

President Trump may declare national housing emergency

Treasury Secretary Scott Bessent said that the Trump administration is mulling the declaration of a national housing emergency in an effort to address high housing prices and limited inventory. LiveNOW's Andy Mac spoke about the possibility of a housing emergency and what it could mean with Christian Datoc from The Washington Examiner.

Treasury Secretary Scott Bessent on Monday said that the Trump administration is mulling the declaration of a national housing emergency in an effort to address high housing prices and limited inventory.

Elevated mortgage rates have added to a slump in the U.S. housing market that began in early 2022, when rates began climbing from pandemic lows.

What they're saying:

"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," Bessent said. "I think everything is on the table."

FILE- A For Sale sign displayed in front of a home on Feb. 22, 2023 in Miami, Florida. (Photo by Joe Raedle/Getty Images)

What a national housing emergency could mean

Big picture view:

Officials are evaluating ways to standardize local building and zoning codes as well as decrease closing costs.

This is in addition to cuts being made by the Federal Reserve, which will help bring housing prices down, Bessent told the Washington Examiner on Monday.

The Trump administration may consider some tariff exemptions for certain construction materials to reduce costs.

1976 National Emergencies Act

The backstory:

The president could technically declare a national housing emergency, or almost for any reason he sees fit, under the 1976 National Emergencies Act. 

The act doesn't give a solid definition of what constitutes an emergency and allows the president to bypass Congress to take a range of actions. 

Trump has already done this during his second term, including declaring emergencies on immigration and foreign trade. 

Home sales forecast

New data on contract signings suggest home sales could remain sluggish in the near term.

A seasonally adjusted index of pending U.S. home sales fell 0.4% in July from the previous month, the National Association of Realtors reported last week. Pending home sales rose 0.7% from July last year.