By Gavin J. Quinton, Los Angeles Times

WASHINGTON — Donald Trump’s promises on affordability in 2024 helped propel him to a second term in the White House.

Since then, Trump says, the problem has been solved: He now calls affordability a hoax perpetrated by Democrats. Yet the high cost of living, especially housing, continues to weigh heavily on voters, and has dragged down the president’s approval ratings.

In a poll conducted this month by the New York Times and Siena University, 58% of respondents said they disapprove of the way the president is handling the economy.

How the economy fares in the coming months will play an outsize role in determining whether the Democrats can build on their electoral success in 2025 and seize control of one or both chambers of Congress.

With housing costs so central to voters’ perceptions about the economy, both parties have put forward proposals in recent weeks targeting affordability. Here is a closer look at their competing plans for expanding housing and reining in costs:

How bad is the affordability crisis?

Nationwide, wages have barely crept up over the last decade — rising by 21.24% between 2014 and 2024, according to the Federal Reserve. Over the same period, rent and home sale prices more than doubled, and healthcare and grocery costs rose 71.5% and 37.35%, respectively, according to the Fed.

National home price-to-income ratios are at an all-time high, and coastal states like California and Hawaii are the most extreme examples.

Housing costs in California are about twice the national average, according to the state Legislative Analyst’s Office, which said prices have increased at “historically rapid rates” in recent years. The median California home sold for $877,285 in 2024, according to the California Assn. of Realtors, compared with about $420,000 nationwide, per Federal Reserve economic data.

California needs to add 180,000 housing units annually to keep up with demand, according to the state Department of Housing. So far, California has fallen short of those goals and has just begun to see success in reducing its homeless population, which sat at 116,000 unsheltered people in 2025.

What do the polls say?

More than two-thirds of Americans surveyed in a Gallup poll last month said they felt the economy was getting worse, and 36% expressed approval for the president — the lowest total since his second term began.

The poll found that 47% of U.S. adults now describe current economic conditions as “poor,” up from 40% just a month prior and the highest since Trump took office. Just 21% said economic conditions were either “excellent” or “good,” while 31% described them as “only fair.”

An Associated Press poll found that only 16% of Republicans think Trump has helped “a lot” in fixing cost of living problems.

What have the Democrats proposed?

The party is pushing measures to expand the supply of housing, and cut down on what they call “restrictive” single-family zoning in favor of denser development.

Senate Minority Leader Chuck Schumer (D-N.Y.) said Democrats plan to “supercharge” construction through bills like California Sen. Adam Schiff’s Housing BOOM Act, which he introduced in December.

Schiff said the bill would lower prices by stimulating the development of “millions of affordable homes.” The proposal would expand low-income housing tax credits, set aside funds for rental assistance and homelessness, and provide $10 billion in housing subsidies for “middle-income” workers such as teachers, police officers and firefighters.

The measure has not been heard in committee, and faces long odds in the Republican-controlled body, though Schiff said inaction on the proposal could be used against opponents.

And the Republicans?

A group of 190 House Republicans this month unveiled a successor proposal to the “Big Beautiful Bill,” the sprawling tax and spending plan approved and signed into law by Trump in July.

The Republican Study Committee described the proposal as an affordability package aimed at lowering down payments, enacting mortgage reforms and creating more tax breaks.

Leaders of the group said it would reduce the budget deficit by $1 trillion and could pass with a simple majority.

“This blueprint … locks in President Trump’s deregulatory agenda through the only process Democrats can’t block: reconciliation,” said Rep. August Pfluger, R-Texas, who chairs the group. “We have 11 months of guaranteed majorities. We’re not wasting a single day.”

Though the proposal has not yet been introduced as legislation, Republicans said it would include a mechanism to revoke funding from blue states over rent control and immigration policy, which they calculated would save $48 billion.

President Trump has endorsed a $200-billion mortgage bond stimulus, which he said would drive down mortgage rates and monthly payments. And the White House, which oversees Fannie Mae and Freddie Mac — the two enterprises that back most U.S. mortgages — continues to push the idea of portable and assumable mortgages.

Trump said the move would allow buyers to keep their existing mortgage rate or enable new homeowners to assume a previous owner’s mortgage.

The Department of Justice, meanwhile, has launched a criminal investigation into Federal Reserve Chair Jerome Powell over the Fed’s renovation costs, as Trump bashed him over “his never ending quest to keep interest rates high.”

The president also vowed to revoke federal funding to states over a wealth of issues such as child care and immigration policy.

“This is not about any particular policy that they think is harmful,” California Democratic Rep. Laura Friedman said. “This is about Trump’s always trying to find a way to punish blue states.”

Is there any alignment?

The two parties are cooperating on companion measures in the House and Senate.

The bipartisan ROAD to Housing Act seeks to expand housing supply by easing regulatory barriers. It passed the Senate unanimously and has support from the White House, but House Republicans have balked, and it has yet to receive a floor vote.

A bipartisan proposal — the Housing in the 21st Century Act — was approved by the House Financial Services Committee by a 50-1 vote in December. It also has yet to receive a floor vote.

The bill is similar to its twin in the Senate, with Rep. French Hill (R-Ark.) working across the aisle with Rep. Maxine Waters (D-Los Angeles). If approved, it would cut permitting times, support manufactured-housing development and expand financing tools for low-income housing developers.

There was also a recent moment of unusual alignment between the president and California Gov. Gavin Newsom, who both promised to crack down on corporate home buying.

What do the experts say?

Housing experts recoiled at GOP proposals to bar housing dollars from sanctuary jurisdictions and cities that impose rent control.

“Any conditioning on HUD funding that sets up rules that explicitly carve out blue cities is going to be really catastrophic for California’s larger urban areas,” said David Garcia, deputy director of policy at UC Berkeley’s Terner Center for Housing Innovation.

More than 35 cities in California have rent control policies, according to the California Apartment Assn. The state passed its own rent stabilization law in 2019, and lawmakers approved a California sanctuary law in 2017 that prohibits state resources from aiding federal immigration enforcement.

The agenda comes on the heels of a series of HUD spending cuts, including a 30% cap on permanent housing investments and the end of a federal emergency housing voucher program that local homelessness officials estimate would put 14,500 people on the streets.

In Los Angeles County, HUD dollars make up about 28% of homelessness funding.

“It would undermine a lot of the bipartisan efforts that are happening in the House and the Senate to move evidence-backed policy to increase housing supply and stabilize rents and home prices,” Garcia said.

The president’s mortgage directives also prompted skepticism from some experts.

“Fannie Mae and Freddie Mac were pressed to get into the riskier parts of the mortgage market back in the housing bubble and that was a part of the problem,” said Eric McGhee, a researcher at the Public Policy Institute of California.

©2026 Los Angeles Times. Visit at latimes.com. Distributed by Tribune Content Agency, LLC.

When Kate Brouner decided to put her six-bedroom, three-bath 3,590-square-foot Howell house on the market, she called the previous owner: Novi-based Realtor Jenn Anderson.

Anderson lived in the home for 11 years before selling to Brouner.

“We call it ‘our house’ and we wanted to make sure to find the right buyer,” Anderson said.

Winter tends to be a slower time for agents but it allows real-estate agents to size up last year’s marketplace and forecast the year ahead. But houses are still being bought and sold.

Steve Stockton has a national and local perspective of the housing market. He’s a board member for RealComp, Michigan’s largest multiple-listing service; the North Oakland County Board of Realtors; and the National Real Estate Review Board.

“This is the longest time period we’ve had growth: 29 months in a row of increased value nationally,” he said. “I don’t remember a month since COVID where we haven’t gone up month over month.”

Regionally, sales rose month-over-month in the Northeast and South, were unchanged in the West, and declined in the Midwest. Demand in Michigan remains steady, Stockton said.

Nationally, home sales rose in December, up by a half percent from November, according to the National Association of Realtors. But compared to December 2024, sales were down by 1%.

The typical homebuyer is 60 years old and the median age for a new-home buyer is at an all-time high: 40, up from 33 in 2021 and 29 in 1991.

“The hardest issue is finding starter homes that younger people can buy. To finally hit 40 as the average first-time buyer’s age is just crazy,” he said.

Market shift

Stockton said the current market is transitioning from one that favored sellers to a balanced market favoring neither buyers nor sellers, aided in part by lower interest rates.

As of late Thursday, a 30-year, fixed-rate mortgage loan was around 6.2% and the 15-year rate was around 5.6%. Few expect interest to drop below 6% this year, despite pressure on the Federal Bank by the Trump administration, he said.

Karen Kage, Realcomp’s CEO and a real estate agent for more than 40 years, said buyers are finding 10% more homes for sale in southeast Michigan this year compared to last year while Oakland County has 15% more.

Oakland County’s hottest markets include Novi, Northville and South Lyon, where builders are busy. Existing homes are selling in Milford, Highland and White Lake townships, Stockton said.

Areas like Birmingham and Bloomfield Hills remain popular and lakeside homes are always in high demand.

Home prices

Southeast Michigan’s median price for existing homes was $270,000 in December, up 5.9% over December 2024. Oakland County’s median home price increased by less than 1%, to $360,000..

“The buyers have a little more to chase,” Stockton said, noting that less than five years ago, buyers were skipping home inspections and warranties to compete with a slew of other buyers.

These days, he said, softer markets in Nevada, Arizona, Idaho and Florida are inspiring older homeowners who are weighing getting a good price for their Michigan home and taking advantage of better prices in what Stockon called “the sunshine states.”

In southeast Michigan, the number of homes on the market represent about three to four months of inventory, up from 2015, when the inventory was a scant six weeks. A truly balanced market requires a five-to-seven-month supply of homes, Stockton said.

More homes for sale means sellers are now waiting on home inspection results, offering home warranties again and bargaining on prices more than in recent years.

But in some areas, buyers are writing love letters about the home they want to persuade a seller to pick their offer.

What’s selling

A refreshed kitchen remains a selling point, as does a newer roof.

“The homes selling quickly now are updated and sharp,” Stockton said. “If you have a house that’s a little tired and dated, it’s going to sit on the market for a while.”

But a motivated seller like Brouner will adjust the home price to attract buyers.

Brouner, a healthcare analyst and mother of five, wanted a new home after her divorce was finalized but didn’t have the time for significant updates.

Anderson said it’s important for sellers to be realistic about their home’s value and the marketplace. Brouner had been watching the real estate market for 18 months before deciding to list her home. She and Anderson agreed to list the house for $449,900.

Less than a week after the listing went online, offers poured in.

“I was pretty confident my house would sell but Jenn really helped me make the most money possible,” she said. “Selling is not as scary as everyone thinks. Find the right agent and they will guide you.”

Brouner will start shopping for a new home with Anderson soon. She hopes to find a house with more land, room for her family and a price under $400,000 and she’s being pragmatic about her options.

“I don’t mind buying a fixer upper,” she said.

The 2026 outlook

“I hate making predictions,” Kage said. “Everything could change tomorrow … Who could have predicted some of the things we’ve been through in the last 40 years?”

She prefers to watch monthly home-sales figures and said two months of numbers gives a short-term peek into the future. The final months of winter can suggest how a season will progress. The second-quarter market is a better indicator, she said.

The solid sellers’ market pressed buyers into bidding wars, which Kage said raised prices to a point that challenges younger buyers.

She believes more sellers are confident of getting a good price for their home and being able to find an affordable next home,” she said.

A rise in the number of homes available has increased the average time on the market by two days, to 43 days, which has alarmed sellers and it shouldn’t because buyers who have more choices are more confident in their offers, Kage said.

Kage encourages buyers and sellers to work with a licensed real estate agent. They can help sellers find the optimum price for marketing a home and typically learn about new listings before they are published.

“People say, ‘Oh, I’ll just check Zillow’ but where do you think Zillow gets the information? They get it from us,” she said.

By Rachel SiegelThe Washington Post

President Donald Trump over the weekend floated an idea that took real estate agents, mortgage brokers and housing experts by surprise: the 50-year mortgage.

On Saturday, Trump posted an image on Truth Social titled “Great American Presidents.” It included a photo of President Franklin D. Roosevelt under the words “30-year mortgage” and a photo of Trump beneath the words “50-year mortgage.” (Mortgages were extended to 30 years in the 1940s as part of Roosevelt’s push to make home buying more affordable.)

Housing economists say the longer time frame could save buyers a couple hundred dollars a month, depending on the size of the mortgage and other details. But it would be costlier in other ways, including with more interest paid over a longer period of time. Implementing such a policy would also require tedious changes from regulators, plus buy-in from lenders and the broader housing finance industry.

So far, there’s little sense of how popular a 50-year mortgage would be. Here’s what we know so far.

– – –

What has the Trump administration said?

After Trump’s Truth Social post on Saturday, Bill Pulte, the administration’s top housing finance official, posted on X that “we are indeed working on The 50 year Mortgage – a complete game changer.” Pulte is the head of the Federal Housing Finance Agency who also made himself chair of mortgage behemoths Fannie Mae and Freddie Mac, companies that have been under government control since the 2008 housing crisis. Fannie and Freddie are essential to the smooth functioning of the U.S. mortgage market and together guarantee about half of existing home loans.

In a statement, a White House official who declined to be named said Trump “is always exploring new ways to improve housing affordability for everyday Americans. Any official policy changes will be announced by the White House.”

An FHFA spokesperson who also declined to be named said, “We are studying, and have not finalized, a wide variety of options related to multi year loans, including the ability to make mortgages transferable or portable. If banks can sell someone’s mortgage, we should at least explore if there are opportunities for regular Americans to have flexibility.”

One person close to the White House said the announcement came after Democrats swept in last week’s elections, in part on pledges to boost affordability for housing and more. But that person, speaking on the condition of anonymity because they were not authorized to discuss it publicly, said Trump’s social media post had no substantial policy behind it yet.

– – –

Would 50-year mortgages save buyers money?

With a longer timeline, home buyers have much more time to pay back a loan. And they would have lower monthly payments along the way. For example, let’s assume a home sells for $400,000. A buyer puts up 10 percent – or $40,000 – for a down payment. The buyer gets a 6.25 percent interest rate, slightly above last week’s 30-year fixed rate average of 6.22 percent.

That buyer would owe about $2,300 each month on a 30-year mortgage. On a 50-year loan, they would owe about $2,000. They might pay more than that, though – that math assumes a buyer gets the same rate for both mortgages, which is unlikely, since shorter loans typically have lower rates. So rates on 50-year loans could be higher than on 30-year ones.

A lower monthly payment could be beneficial for new buyers looking to get a foothold in the market. But it might also work against them if they are only planning on living in the house for a few years, or if they don’t know how their needs will shake out across decades.

– – –

What about potential drawbacks?

Buyers’ monthly payments may be lower, but they’ll end up paying much more interest over two more decades. With a 50-year loan, total interest on that $400,000 home would amount to $816,396, compared with $438,156 on a 30-year loan. That’s 86 percent more interest over the life of the loans, said Joel Berner, senior economist at Realtor.com.

And it will take much longer for owners to build equity. Ten years into paying off a 30-year mortgage on that $400,000 home, an owner would have a 24 percent stake in a house, setting aside rising home values. With a 50-year mortgage, that would be 14 percent.

Berner said addressing the nation’s affordability problems will take lots of ideas, including how to generate more construction so there are enough homes to meet Americans’ needs. But a new mortgage offering could juice demand before supply can catch up – which would push prices even higher.

“This is a creative way to solve this problem,” Berner said, “but I don’t think it addresses the fundamental issues that we have.”

– – –

What would it take to offer a 50-year mortgage?

Establishing a new kind of mortgage could be possible, albeit complex, wrote Jaret Seiberg, managing director at TD Cowen, in a Monday analyst note. The Dodd-Frank Act – the landmark legislation that reformed the financial system after the 2008 financial crisis – says mortgages that exceed 30 years do not meet the definition of a qualified mortgage, which also means Fannie and Freddie can’t buy them.

But regulators have the ability to alter those qualifications to keep mortgages affordable. All told, the process could take at least a year to implement, Seiberg wrote, and it’s unlikely that lenders would originate 50-year mortgages without clear policy changes first.

Without changing the qualifications, the new loans could be hard to find – and more expensive. Lenders may be less willing to offer 50-year mortgages if they know Fannie and Freddie can’t buy them, a spokesperson for the Mortgage Bankers Association said in a statement. Limited interest from investors could also push interest rates up.

– – –

What’s next?

Any details from the White House or FHFA would be needed for the market to prepare for such a change. Joe Brusuelas, chief economist at RSM, said that for now, the administration’s posts appear to be more about messaging than substantial policy. But, Brusuelas said, younger generations “may look at this differently.”

“If they think they’re saving $300 or $400 a month, then that’s a big deal,” he said. “That covers the car payment, maybe.”