Trump calls out “land hoarding” as housing starts plunge
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Former President Donald Trump has thrust himself back into the center of the housing affordability debate with a blunt message: large homebuilders need to stop sitting on empty lots and start delivering homes. In a Truth Social post this week, Trump accused builders of “sitting on 2 million empty lots,” comparing their behavior to OPEC controlling the oil supply. He called on Fannie Mae and Freddie Mac to act immediately, asking the mortgage giants to push financing toward big builders and get construction moving.
“They’re my friends, and they’re very important to the success of our country,” Trump wrote, “but now, they can get financing, and they have to start building homes.”
The comments come as the housing market shows fresh signs of stress. According to recent U.S. Census Bureau data, housing starts fell sharply in August to an annual rate of 1.31 million. That marks an 8.5 percent drop from July and 6 percent lower than a year ago. Despite a 10.6 percent rise in inventory to 2.1 million homes, buyers are pulling back, interest rates remain above 6.5 percent, and builders are responding with price cuts and incentives.
Can Fannie and Freddie really jumpstart construction?
Trump’s call for action has sparked questions about what Fannie Mae and Freddie Mac are actually capable of doing. While both government-sponsored enterprises play a major role in financing home mortgages, they are not structured to fund land development or compel private-sector builders to break ground. Both remain under federal conservatorship since the 2008 financial crisis. Trump, alongside Federal Housing Finance Agency (FHFA) Director Bill Pulte, has pushed to privatize them, but the process remains politically fraught.
Under Pulte’s leadership, the FHFA has introduced credit access reforms and governance changes, including the adoption of VantageScore 4.0. However, these moves impact borrowers, not builders. Industry experts point to regulatory hurdles, material costs, and high interest rates as more significant obstacles to new construction than lack of access to capital.
According to the National Association of Home Builders, 39 percent of builders cut prices in September, and 65 percent offered sales incentives. Yet housing starts remain weak, reflecting broader caution in the sector.
Trump’s remarks may play well politically, particularly among voters frustrated by rising rents and stalled development. But as of now, the mechanics of using Fannie Mae and Freddie Mac to force a construction surge remain vague.
While the message is loud and clear, the tools to carry it out may not be within the GSEs’ mandate. Until policy catches up with rhetoric, builders appear likely to keep their pace slow and measured.
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