Trump considers declaring a national housing emergency, Krugman: it is a real crisis, the triangular dilemma leads to structural imbalance.

US Treasury Secretary Bessent predicts or announces a national "housing emergency", with Krugman emphasizing that this crisis is a structural supply-demand imbalance, and the Trump 2.0 policy may exacerbate the problem. (Background: Don’t underestimate Trump’s determination: How will the US "cut interest rates"?) (Background information: This small company wants to buy $20 million worth of Trump coins $TRUMP to change the US-Mexico trade agreement?) US Treasury Secretary Bessent predicted this week that Trump might declare a "housing emergency" in the fall, highlighting the three major pressures currently affecting the US real estate market: long-term supply-demand imbalance, skyrocketing housing prices, and rising borrowing costs, pushing the issue to Washington's decision-making. The reality of the crisis: Structural imbalance Although Trump has declared emergencies in many areas, this time it seems really serious. Nobel laureate Krugman also endorses the severity of the housing crisis. He analyzed that since 2015, US housing prices have increased far beyond the cost of living, but new housing starts have not taken off simultaneously. By 2024, the average selling price of new homes will exceed $500,000, and mortgage rates have doubled since 2020, indicating that the problem is not speculative bubbles but rather long-term insufficient supply. Krugman bluntly stated: "This time it is not just a hot market, but fundamentally a lack of housing." Supply bottlenecks: Land, costs, and NIMBY Krugman pointed out that once the suburban expansion space approaches saturation, the policy focus begins to shift towards urban densification development. However, whether in blue states or red states, existing homeowners generally have low willingness, while strict zoning and lengthy approvals also block multi-family housing plans, putting pressure on supply. On the other hand, research shows that construction costs increased by 17% year-on-year in 2022, making it difficult for developers. The intertwined issues of land bottlenecks, soaring costs, and NIMBY (existing neighborhood residents' reluctance to allow nearby development) constitute the triangular shackles of the current supply gap. Risks of Trump 2.0 policy Fox Business News reports that although the Trump team is considering declaring a state of emergency, the "2025 Plan" still maintains single-family zoning, which is contrary to the direction of increasing supply. On the other hand, Bessent also threatened to impose a 35% tariff on Canadian lumber and plans to repatriate migrant workers on a large scale, the former pushing up material costs and the latter compressing construction labor. Krugman believes that merely declaring a state of emergency is insufficient to relieve the pressure. Only by shortening the approval process, relaxing density restrictions, and ensuring budgets for affordable housing can we hope to expand supply and stabilize housing prices. Looking at the US housing market as a whole, long-term supply shortages, NIMBY resistance, and construction costs constitute a structural problem. If the Trump 2.0 continues high tariffs and tight migrant worker policies, the crisis may deepen. Bipartisan acknowledgment of the dilemma and promotion of reform is the key step to returning housing rights to basic guarantees. Related reports $WLFI token skyrocketed after listing and then fell back, the crypto world contributed $5 billion to the Trump family WLFI opened at $0.24, Trump earned a fortune! The family unlocked token value exceeding $5.4 billion The Trump family project WLFI is online! $WLFI opening performance, token economy, official buyback .. all sorted out <Trump considers declaring a national housing emergency, Krugman: It is a real crisis, triangular dilemma causing structural imbalance> This article was first published on BlockTempo, the most influential blockchain news media.