As President Trump Tackles Housing Affordability, Progress Emerges — and More Relief Is on the Horizon
1/14/2026
Action Summary
- Policy Objective: Address housing affordability challenges and restore the American Dream of homeownership amid years of rising costs.
- Market Improvements: Notable rebound in home sales, with existing home sales reaching a three-year high and robust performance particularly in key home-selling regions.
- Affordability Enhancements: Improvement in affordability measures, as indicated by the First American Real House Price Index and the National Association of Realtors’ Housing Affordability Index, driven by rising incomes and easing mortgage rates.
- Borrowing Cost Reductions: Decline in the average 30-year fixed mortgage rate to multi-year lows, resulting in more affordable monthly housing payments.
- Strategic Initiatives: Directive for Fannie Mae and Freddie Mac to purchase $200 billion in mortgage-backed securities to further lower borrowing costs, and measures to ban large institutional investors from acquiring single-family homes.
- Overall Commitment: Efforts to cut regulatory red tape, boost housing supply, and secure lasting affordability for American families.
Risks & Considerations
- The Executive Order’s focus on housing affordability may lead to increased financial pressure on local governments and educational institutions like Vanderbilt, as housing markets stabilize and potentially shift demographic patterns within local communities.
- With the directive to purchase $200 billion in mortgage-backed securities, there is a risk of market volatility, which could impact university endowment investments and financial planning.
- The ban on large institutional investors acquiring single-family homes might affect partnerships or investments between Vanderbilt and real estate entities, necessitating a review of current and future contracts.
- Changing housing market dynamics could alter the composition of the student body, affecting admissions strategies and resource allocation for student housing.
Impacted Programs
- Vanderbilt’s Owen Graduate School of Management could see increased interest in courses related to real estate finance and policy as students seek to understand the implications of these housing market changes.
- Vanderbilt Law School may experience a rise in demand for expertise in regulatory and real estate law, driven by the administration’s regulatory changes.
- The Office of Community Engagement might need to engage with local housing authorities to better understand and address community needs associated with these policy shifts.
- Vanderbilt’s Economic Development Center could play a vital role in analyzing and responding to the broader economic impacts of the housing policies on the local and national economy.
Financial Impact
- The reduction in borrowing costs may affect university-collaborative housing projects, potentially making them more feasible and attractive for investment.
- Changes in housing affordability could alter the local cost of living, impacting the university’s operational costs and employee salary structures.
- Potential shifts in student demographics due to housing policy changes might influence financial aid distribution and tuition strategies.
- Opportunities may arise for securing federal funding or partnerships focused on housing research and policy development.
Relevance Score: 3 (The order presents moderate risks involving financial and strategic considerations.)
Key Actions
- Vanderbilt University’s Real Estate and Facilities Department should analyze how the reduction in borrowing costs and increased housing affordability might impact the local real estate market surrounding the campus. Understanding these changes can aid in strategic planning for campus expansion or development projects.
- The Vanderbilt Business School could develop courses or workshops on the implications of federal housing policies and real estate market trends. This would be beneficial for students interested in real estate finance and policy.
- Vanderbilt’s Law School should examine the legal implications of the ban on large institutional investors acquiring single-family homes, offering insights and resources for students interested in real estate law and policy.
- The Center for Social Policy should explore how these housing policies may impact low-income families and identify advocacy opportunities to ensure equitable access to affordable housing.
Opportunities
- The emphasis on affordability and homeownership presents an opportunity for Vanderbilt’s Center for Economic Research to conduct studies on the economic and social impacts of these policies, contributing valuable insights to national discussions.
- Vanderbilt can position itself as a thought leader by hosting symposiums and discussions on the evolving real estate landscape, fostering collaboration with policymakers and industry leaders.
- There is an opportunity for Vanderbilt’s Community Engagement Office to partner with local organizations to assist families in navigating the changing housing market, enhancing community relations and support.
Relevance Score: 3 (The executive actions suggest some adjustments are needed to better align Vanderbilt’s programs with ongoing housing and real estate policy changes.)
Timeline for Implementation
N/A – No specific timeline or deadline for the directives is provided in the text.
Relevance Score: 1
Impacted Government Organizations
- Federal National Mortgage Association (Fannie Mae): Directed to purchase $200 billion in mortgage-backed securities to help lower borrowing costs and support housing affordability.
- Federal Home Loan Mortgage Corporation (Freddie Mac): Similarly tasked with purchasing mortgage-backed securities as part of the administration’s efforts to sustain the housing market and improve affordability.
Relevance Score: 1 (Only 1 or 2 agencies are directly impacted by this directive.)
Responsible Officials
- CEO of Fannie Mae – Tasked with executing the directive to purchase $200 billion in mortgage-backed securities and ensuring that the measures to curb large institutional investors acquiring single-family homes are effectively implemented.
- CEO of Freddie Mac – Charged with implementing the directive alongside Fannie Mae to drive down borrowing costs and preserve available housing inventory.
Relevance Score: 4 (Directives affect agency heads responsible for implementing major financial and regulatory measures.)