President-elect Donald Trump’s proposed housing deregulation could slash new home construction costs by more than $90,000 per unit, according to a new analysis from Realtor.com.

The potential savings are part of a broader housing agenda targeting the nation’s estimated 2.5 to 7.2 million unit shortage.

Two key initiatives anchor Trump’s housing strategy – streamlining construction regulations and opening federal lands for residential development. The federal government controls roughly 650 million acres, according to a report issued by HousingWire, though experts caution that only a fraction would be suitable for housing development.

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“We’re generations past the federal government building affordable housing because we found that the private sector does a better job at it and can leverage the investment better,” David Dworkin, president of the National Housing Conference, told HousingWire. However, he emphasized the need for “a process that’s fair, equitable and efficient.”

However, the plan faces hurdles beyond land availability. Redfin chief economist Daryl Fairweather identifies Trump’s proposed immigration and trade policies as potential obstacles. “A lot of construction labor is undocumented labor,” Fairweather said, citing Census data showing non-citizens make up about one-third of construction workers.

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A recent precedent exists for federal land conversion. The outgoing Biden administration recently sold 20 acres of public land in southern Nevada for affordable housing at just $100 per acre – a fraction of its $20 million market value, the HousingWire report said. The project aims to create 210 homes for households earning under $70,000 annually.

Andrew Jakabovics, vice president at Enterprise Community Partners, advocates focusing on development where infrastructure already exists. “I think it’s about building more in the places where we’ve already got housing, infrastructure, schools, shopping centers and the amenities that make places livable,” he said.

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Markets have responded to Trump’s victory by increasing long-term rates, anticipating increased economic growth, potential inflation and larger deficits. While lower effective household tax rates could boost disposable income, proposed tariffs and immigration restrictions may drive construction costs higher, potentially offsetting regulatory savings.

The housing shortage particularly impacts growing metropolitan areas beyond coastal cities. “Homelessness grows daily, fueled by the lack of affordable housing,” Dworkin said. “Addressing this crisis requires building more affordable housing in places where it’s needed – not just in coastal cities but in places like Phoenix, Boise, Omaha and Nashville.”

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