Mortgage Giants Fannie Mae, Freddie Mac Urged by Trump To Help as He Accuses Big Homebuilders of Sitting on '2 Million Empty Slots'

Core Viewpoint - US President Donald Trump has accused major homebuilders of deliberately holding back housing construction and has called for intervention from mortgage giants Fannie Mae and Freddie Mac to stimulate building activity, emphasizing the need to restore the American Dream [1][2][3]. Group 1: Trump's Accusations and Requests - Trump likened homebuilders to OPEC, accusing them of market manipulation by sitting on 2 million empty lots and urged Fannie Mae and Freddie Mac to encourage builders to start construction [2][3]. - He stated that developers now have access to financing and there is "no excuse not to build" [1][4]. - Trump's request is part of his administration's 'American Dream Restoration' initiative aimed at increasing housing supply and providing pricing relief [5]. Group 2: Industry Response and Challenges - Analysts noted that Fannie Mae and Freddie Mac have limited influence over construction decisions, primarily focusing on mortgage lending and market liquidity rather than development [6]. - Housing experts criticized Trump's comments, with economist Bryan Caplan arguing that zoning restrictions and slow local approvals, rather than corporate greed, are the main barriers to housing supply [7][8]. - The National Association of Home Builders (NAHB) acknowledged the affordability issue but cautioned against oversimplifying the problem, emphasizing the need for collaboration to overcome government barriers [9][10]. Group 3: Current Housing Market Situation - Data indicates a complex housing market, with homes for sale rising by 10.6% in August 2025 compared to the previous year, while home sales fell by 2.6% and prices increased by 1.5%, with the average new home costing over $500,000 [12]. - A survey revealed that 64% of single-family builders reported a low supply of lots, with 26% indicating it was "very low," attributed to zoning and permit delays rather than withheld land [12]. - Caplan emphasized that financing is not the primary issue, suggesting that the real challenge lies in the freedom to build [13].