Bessent has said Trump may declare a national housing emergency this fall to address soaring prices and shrinking supply

Treasury Secretary Scott Bessent said on Monday that the Trump administration is considering declaring a national housing emergency in response to soaring home prices and limited supply. Speaking to the Washington Examiner in a Labor Day interview, Bessent noted that such a move could come as soon as the fall.

He emphasized that interest rate cuts by the Federal Reserve would help ease housing costs, but also said the administration is evaluating other options to expand supply and reduce expenses. “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 explained, adding that “everything is on the table.”

While he did not outline specific executive actions President Donald Trump might take if a housing emergency is declared, Bessent said officials are reviewing potential measures such as standardizing local building and zoning codes and lowering closing costs. He also suggested that tariff exemptions on construction materials could be part of the plan to ease cost pressures.

The cost of lumber remains a key concern. Bessent pointed out that tariffs on Canadian softwood lumber have driven up prices, with the Commerce Department doubling countervailing duties in July from 6.74% to 14.63%, alongside an existing 20.6% anti-dumping tariff. Altogether, Canadian lumber now faces a 35.2% tariff, compared to 14.4% previously. According to the National Association of Home Builders, lumber futures remain nearly 20% higher than a year ago, despite recent declines.

The administration’s review comes as elevated insurance premiums, construction costs, and interest rates continue to put pressure on the U.S. housing market, limiting affordability for many buyers and slowing new construction.