Core Viewpoint - The Trump administration is proposing several measures to address the high cost of housing in the US, including banning large institutional investors from buying single-family homes and introducing new mortgage options to make homeownership more accessible [2][4]. Housing Market Challenges - The US built less than two million new homes in 2024, while eight million new migrants were admitted, highlighting a significant housing shortage [3] - Industry experts emphasize that the primary issue driving high housing costs is the lack of available homes, which cannot be quickly resolved [3][7]. Proposed Measures - The administration's proposals include: - Banning large institutional investors from purchasing single-family homes to prioritize individual homebuyers [4] - Purchasing $200 billion in mortgage debt to lower mortgage interest rates [2][7] - Introducing 50-year mortgages and portable home loans to enhance affordability [13][14]. Impact of Major Investors - Major investors, such as hedge funds and private equity firms, own about 2% of the single-family rental housing stock, and their influence on home prices is debated [6] - Concerns exist that these investors are outcompeting individual homebuyers, particularly first-time buyers, but evidence supporting this claim is limited [5][6]. 401(k) Withdrawal for Home Purchases - A proposal allows Americans to use their 401(k) funds for down payments on homes, which could encourage earlier investment in homeownership [8][9] - Current tax rules impose penalties for early withdrawals, but exceptions exist for certain circumstances [11][12]. Mortgage Innovations - The administration is exploring 50-year mortgages, which could lower monthly payments but increase overall interest costs [13][14] - Portable mortgages are also being considered, allowing homeowners to transfer their mortgage interest rates to new properties, potentially benefiting repeat buyers [14][15]. Expert Opinions - Housing economists argue that financing changes alone will not solve the affordability crisis, which is fundamentally rooted in the housing shortage [16].