Lutnick Meets with Homebuilders as Trump Intensifies Efforts to Boost Housing Affordability

US Administration Engages Homebuilders to Address Housing Costs

Photographer: Aaron Schwartz/CNP/Bloomberg

Commerce Secretary Howard Lutnick has recently held discussions with leaders from prominent home construction firms, according to sources familiar with the situation. These meetings are part of President Donald Trump’s broader initiative to strengthen his economic credentials with voters.

In recent weeks, the administration has been consulting with homebuilders to explore strategies for making housing more affordable. According to insiders, a key focus has been on identifying potential incentives that could encourage companies to increase the supply of new homes.

Top Stories from Bloomberg

These efforts coincide with the Trump administration’s increased focus on demonstrating action to address the growing concern over housing affordability, a key topic in the upcoming midterm elections. This week, President Trump announced a prohibition on institutional investors purchasing single-family homes and instructed Fannie Mae and Freddie Mac to acquire $200 billion in mortgage-backed securities.

Kevin Hassett, head of the National Economic Council, told CNBC that this move is part of a larger strategy President Trump plans to unveil at Davos. Hassett noted that the administration has identified a gap in the housing market, particularly with declining sales among buyers aged 30 to 40.

Related: Trump’s $200 Billion MBS Initiative Signals New Market Influence

Following these announcements, shares of homebuilding and mortgage-related companies surged. Toll Brothers Inc. saw an 8% increase, Lennar Corp. rose by 7.6%, LoanDepot Inc. jumped 22%, and Rocket Cos. gained approximately 7%.

When asked about the recent meetings, Commerce spokesperson Benjamin Kass stated, “Secretary Lutnick is committed to reducing housing expenses after the previous administration allowed prices to more than double.”

The White House did not respond to requests for comment. President Trump has previously expressed his intention to collaborate with major homebuilders to help lower housing costs.

“They’re my friends, and they’re very important to the SUCCESS of our Country, but now, they can get Financing, and they have to start building Homes,” Trump wrote on social media in October.

Bill Pulte, Director of the Federal Housing Finance Agency, hinted at possible policy directions in a recent social media post. He urged builders working with Fannie Mae and Freddie Mac to expand their lot inventories, including land that is ready for development, and promised further updates on upcoming measures.

Administration Seeks Solutions to Lower Home Prices

On Friday, Pulte elaborated further, telling reporters at the White House, “We are considering every possible option to reduce home prices.” He emphasized the administration’s desire to work collaboratively with builders, but also noted that there are mechanisms available to ensure construction resumes at a robust pace.

Reporting assistance by Felice Maranz, Subrat Patnaik, and Kate Sullivan.

(This article has been updated with recent stock movements and additional comments from Pulte.)

Most Popular from Bloomberg Businessweek

©2026 Bloomberg L.P.