In his first days in office, President donald trump issued an emergency order directing the heads of all executive departments and agencies to “deliver emergency price reductions,” which he stressed would include reducing the cost of housing and expanding supply .

“It is critical to restore the purchasing power of the American family and improve our quality of life,” read an executive action signed by Trump on Monday.

The Trump administration cited regulatory requirements as the main driver why so many Americans are unable to buy homes. In his first term, Trump cut regulatory costs by nearly $11,000 per household, the White House he said in a fact sheet.

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Real estate experts agree that the housing crisis is a problem that the federal government cannot solve alone and that multiple levels of government must be involved to make meaningful change.

“Trump’s plan to cut regulatory red tape focuses on construction costs, but most housing regulations, such as zoning laws and permits, are controlled by local governments. The federal government has an authority limited here, so meaningful change would likely require incentivizing local governments or taking unprecedented federal action, such as overturning local zoning laws,” Redfin Chief Economist Daryl told FOX Business. Fairweather.

Still, several experts agree that Trump can put immense pressure on the issue to move the needle.

Single-family homes in a residential neighborhood in Aldie, Virginia on May 22, 2024. (Nathan Howard/Bloomberg via Getty Images/Getty Images)

Realtor.com Chief Economist Danielle Hale told FOX Business that the U.S. faces a shortfall of between 2.5 million and 7.2 million homes, highlighting the need extreme of building more homes. He said regulatory requirements, which can add significant costs to construction and have been a barrier to increasing supply, are a good place to start.

On the one hand, about $90,000 of the cost of new construction is due to regulation and compliance, Hale estimated.

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“With new construction just over $400,000, that’s a pretty high percentage. That suggests there’s room to address this regulation,” Hale said. “Maybe we can review those regulations and find areas where maybe we can reduce some of the rules or fees associated with those regulations to improve the bottom line and allow builders not only to build more homes, but to build them faster and more cost-effectively.”

Noel Roberts, founder of the real estate company Pending, which specializes in off-market transactions, also believes that the key to making housing affordable is increasing supply.

Residential homes in Crockett, California on June 6, 2024. (David Paul Morris/Bloomberg via Getty Images/Getty Images)

“Over the past few years, many potential sellers have been kept on the sidelines by the high rates locking them in on their current mortgages,” Roberts told FOX Business, adding that he has off-market inventory for of hundreds of millions of dollars. with owners who are open to selling, but not ready to publicly list.

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While he agrees that Trump “can’t wave a wand” to solve the housing crisis, Roberts believes his track record shows that Trump’s policies, rhetoric and pressure on the Federal Reserve can influence key economic levers such as lower prices and lower mortgage rates.

“If he can exercise influence over the Fed at lower rates and spur economic growth, there is a path to improving conditions for homebuyers,” Roberts said.

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Fairweather also noted that the federal government can influence housing affordability through mortgage policy, potentially privatizing Fannie Mae and Freddie Mac, both of which have operated under U.S. government control since 2008, by lowering mortgage fees. and facilitating access to mortgages to make home ownership more accessible.

Trump has mentioned plans to privatize the mortgage giants.

Reuters contributed to this report.