A Nobel Prize-winning economist is blasting President Donald Trump. Paul Krugman says the president’s policies worsen the U.S. housing crisis. His comments come as the Trump administration considers declaring a national housing emergency. The White House believes an emergency declaration could speed up home construction.
Tariffs and Policies Hurt Construction
Krugman argues Trump’s other policies hurt housing availability. He points to tariffs on key construction imports from Canada and Mexico. He also notes the deportation of immigrant workers who are crucial to the industry. Krugman believes these actions actively discourage building new homes. “Everything Trump is doing… will make the emergency worse,” he wrote.
Administration Weighs Emergency Declaration
Treasury Secretary Scott Bessent said a decision is coming this fall. An emergency declaration could bypass some regulations to boost development. Bessent stated increasing housing supply is the administration’s “biggest focus.” He also said a tariff reprieve for construction materials is “on the table.” The administration acknowledges that Americans struggle with home affordability.
High Prices and Lack of Homes
House prices have risen much faster than the average income. This gap grew wider after the COVID-19 pandemic. Krugman says a drop in homebuilding is the primary cause. He thinks the solution is to build more housing, especially multifamily units. Meanwhile, the National Association of Home Builders (NAHB) has also urged Trump to end tariffs. The group calls the tariffs a “tax on American builders, home buyers and consumers.”
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