Donald Trump keeps insisting he will make life more affordable. However, what he said on Thursday had quite the opposite effect. During a Cabinet meeting on January 29, Trump said he does not want housing prices to fall, as it would hurt homeowners.
That is why he believes it is best to plan to push prices higher. “We’re not going to destroy the value of their homes so that somebody that didn’t work very hard can buy a home,” Trump said.
“I don’t want to drive housing prices down. I want to drive housing prices up for people who own their homes,” he stated.
Within hours, Democrats and critics were accusing the president of abandoning first-time buyers when housing affordability is at historic lows.
Housing prices have been surging faster than inflation recently. According to Redfin data cited by The Hill, the median home sale price in December reportedly hit $429,000, which is more than 28 percent higher than in December 2020.
For many millennials and Gen Z buyers, owning a home feels out of reach in their lifetime.
Trump: “People that own their homes — we’re gonna keep them wealthy. We’re gonna keep those prices up. We’re not gonna destroy the value of their homes so that somebody who didn’t work very hard can buy a home.” pic.twitter.com/FlyaHZAspa
— Aaron Rupar (@atrupar) January 29, 2026
Sen. Tammy Duckworth wrote on X: “Are you trying to buy your first home? Trump wants your prices to go up. But sure, Donald, keep saying affordability is a hoax.”
Rep. Jason Crow then pointed to other economic pressures. “Millions of hardworking folks can’t afford to buy — and the President’s tariffs are making it even more expensive,” he wrote.
Others, like political commentator Ron Filipkowski, summarized what young buyers heard as: “Trump to young people hoping to afford a home in the near future: Tough [expletive].” Another viral post called it “excellent A+ messaging for the Gen Z’ers who feel like owning a home is out of reach.”
The White House has been trying to take action on housing of late. For example, earlier this week, Trump signed an executive order to curb Wall Street investors from purchasing single-family homes.
Apparently, institutional buyers are standing in the way of families getting starter homes. But a recent Morgan Stanley research described the administration’s housing interventions as “modestly helpful.”
Trump signs order to block Wall Street from buying single-family homes in bid to drive down rents https://t.co/CeSA5VLF9Z pic.twitter.com/Guv8QAi0Ei
— New York Post (@nypost) January 21, 2026
They claimed that it is actually structural problems that are freezing the market. The bank pointed to the “lock-in” effect, where millions of homeowners with sub-5 percent mortgages have little incentive to sell, which blocks supply.
Roughly two-thirds of outstanding U.S. mortgages are below 5 percent, and about 40 percent have no mortgage, according to Apollo Global Management. So lowering rates won’t free up homes.
Plus, older Americans (like Trump himself) now control a record share of household wealth, and most of it is tied up in real estate. Younger buyers, meanwhile, face higher rates and much slower income growth. As Moody’s economist Cristian deRitis told Fortune, the U.S. can’t “build its way out” of the problem.
So what will happen to renters and first-time buyers?
