U.S. homebuilding stocks in focus as Trump team weighs housing emergency

Published 02/09/2025, 11:44
© Reuters.

Investing.com -- U.S. homebuilding stocks could see renewed attention on Tuesday after Treasury Secretary Scott Bessent said the Trump administration is considering declaring a national housing emergency this fall.

“We may declare a national housing emergency in the fall,” Bessent told the Washington Examiner, noting that the White House is studying ways to address affordability without overriding 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 move would spotlight housing as a core issue heading into the 2026 midterm elections. 

Bessent said affordability will be a critical part of Republicans’ campaign platform, though he declined to detail specific actions. 

Proposals under discussion include standardizing local building and zoning codes and reducing closing costs.

Investors will be keeping a watch on homebuilder stocks, including D.R. Horton, PulteGroup, NVR, Lennar, LGI Homes, and KB Home, which could be impacted positively if federal action boosts construction activity or lowers barriers for buyers.

President Donald Trump has often used emergency declarations to bypass Congress, a tactic that has drawn legal challenges in the past. Housing affordability, meanwhile, has worsened under higher interest rates.

With affordability pressures intensifying since the pandemic, the White House appears ready to put the issue at the center of its economic agenda.

 

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