Trump Signals Support for Rising Home Prices as Housing Market Shows Signs of Strain

February 15, 2026 — United States

Former President Donald Trump is drawing renewed attention to his housing policy stance after publicly stating that he does not want home prices to fall — even as new data shows the U.S. housing market slowing and affordability challenges intensifying.

During a recent appearance, Trump said he wants to “protect the people that own their homes” and ensure that property values continue rising.

“I don’t want to drive housing prices down,” Trump said. “I want to drive housing prices up for people that own their homes.”

His remarks came amid fresh housing market data showing existing home sales in January fell 8.4%, with annualized sales declining to approximately 3.9 million units — a level economists described as sluggish.

Prices Rise Despite Cooling Sales

While sales volume has slowed, home prices continue climbing in many markets. Recent national figures show home prices rising 6% year-over-year, with cities like San Diego, New York, and Chicago posting gains between 9% and 10%.

Economists attribute the dynamic to limited housing supply combined with steady demand, even in a high interest rate environment.

“The housing market report was dull and slowing,” one financial commentator said, noting that affordability remains a major barrier for first-time buyers.

The result is a widening divide: homeowners are seeing their net worth increase, while prospective buyers face record-high prices and elevated mortgage rates.

Investors vs. First-Time Buyers

Critics argue that policies focused on maintaining high property values may disproportionately benefit large investors and institutional buyers.

Companies such as Blackstone expanded their single-family rental portfolios significantly following the 2008 housing crisis. Institutional ownership of residential property has since grown in several metropolitan areas.

Supporters of investor participation argue that large firms provide liquidity and rental housing options. Critics counter that concentrated ownership can limit supply available to individual buyers.

Commerce Secretary Howard Lutnick recently referenced so-called “mom and pop” property owners who hold multiple homes as part of retirement planning, suggesting policymakers aim to protect small-scale investors while discouraging large-scale speculation.

Immigration Policy and Construction Labor

Housing supply challenges may also intersect with labor market dynamics.

Economists have noted that immigrants represent a significant share of the construction workforce. Some analysts suggest that stricter immigration enforcement policies could contribute to labor shortages in residential construction, potentially slowing new homebuilding.

Recent labor data indicates shifts in the foreign-born share of the workforce. However, some economists caution that official statistics may lag real-time conditions.

“There’s a possibility that net migration could turn negative,” one economist said, warning that a sustained decline in labor supply could affect both construction capacity and broader economic growth.

Others argue that work permit approvals in recent years have temporarily boosted labor supply, though they suggest that effect may diminish in the coming months.

Balancing Wealth Preservation and Affordability

The core policy tension centers on whether housing should primarily function as a wealth-building asset or as an accessible consumer good.

For current homeowners — particularly older Americans who rely on home equity for retirement security — rising property values provide financial stability.

For younger buyers and renters, however, sustained price growth presents mounting affordability barriers.

Trump has emphasized that his administration would focus on lowering interest rates while preserving property values. Critics say lowering borrowing costs alone may not solve structural supply shortages.

Broader Economic Implications

Housing plays a central role in the U.S. economy, influencing consumer confidence, retirement planning, and generational wealth transfer.

If labor shortages constrain new construction while demand remains elevated, economists warn that prices could continue rising, deepening affordability gaps.

At the same time, policymakers face political pressure from existing homeowners who fear price declines could erode household wealth.

The debate highlights a broader economic crossroads: whether federal policy should prioritize stabilizing asset values or expanding access to ownership.

For now, the data shows a market characterized by slower sales, rising prices, constrained supply, and growing inequality between those who own property and those trying to enter the market.

As the 2026 midterm cycle approaches, housing affordability is expected to remain a central economic issue — one that tests how leaders balance wealth protection with opportunity expansion.