Could a National Housing Emergency Open Doors for Future Real Estate Investors?

Homeownership in many parts of the country seems increasingly out of reach. Nearly half of U.S. metro areas now require a six-figure income to buy a median-priced home (MarketWatch), one stark sign of just how steep the affordability challenge has become.

In response, the Trump administration is considering a bold move: declaring a national housing emergency. This would unlock special federal levers that may help everyday Americans get onto the property ladder and break into real estate investing.

Here are five key strategies under discussion, and how you (as a future investor) can benefit.

Unlocking Federal Land to Build More Homes

One proposal would free up around 850 square miles of Bureau of Land Management land. That space alone could support up to 3 million new single-family homes (HousingWire).

More supply could cool housing prices and create opportunities for investors to develop or flip properties in emerging areas. Take this real world example: BLM has already sold or conveyed parcels near Las Vegas. One 20-acre affordable housing carve-out in Clark County spawned about 210 homes (HousingWire).

If you are looking to start small, you could monitor BLM auctions and partner with local builders to create starter-unit projects.

Reforming Zoning and Permitting to Speed Housing Supply

Local zoning is often the biggest barrier to new housing development. The administration hopes to pressure states and cities to allow smaller lots, higher density, and faster permitting (e.g. Houston’s pilot program aims to approve permits for single-family homes in under 30 days).

Investors could take advantage by partnering with municipalities pursuing reform to pilot infill or accessory dwelling unit (ADU) projects, projects that respond rapidly to changes in the permitting landscape.

Cutting Closing Costs to Lower Up-Front Barriers

Typical closing costs range from 2 to 5 percent of a home’s price. On a $300,000 property, that works out to roughly $6,000 to $15,000. Reducing these costs could help more buyers enter the market sooner, and investors can position themselves strategically by targeting properties just above that affordability threshold.

For example, a $310,000 home with $6,000 in closing fees might be out of reach for many buyers. If those fees drop to $3,000, however, the property suddenly becomes much more attainable. As an investor, you can also make your offers stand out by covering part of the closing costs, helping buyers stretch their budgets while keeping your deal competitive.

Expanding Capital Gains Tax Exemptions to Encourage Sellers

Current laws allows homeowners to exclude $250,000 (single) or $500,000 (married) in gains from taxation, but these thresholds have not kept up with inflation or rising home values. Indexed for inflation, the married threshold today would be near $1 million.

If capital gains tax exemptions are increased toward (or beyond) inflation-indexed values, it could motivate more homeowners to sell rather than hold onto property indefinitely. As an investor, you might see increased listings, especially in the mid-market segment, accelerating turnaround opportunities.

Pressuring the Fed to Push Down Mortgage Rates

While lowering mortgage rates is more complicated than it sounds, the administration could lean on the Fed to act. Mortgage rates loosely follow 10-year Treasury yields, which are influenced by broader economic confidence more than the Fed’s short-term rate moves.

Still... Even small drops in mortgage costs can change investment math. Investors with strong credit and ready cash can act faster when rates are trending downward.

Do This

1. Track Land Auctions and Permitting Hotspots: Monitor federal land releases and local zoning reform news. These are places where supply is likely to expand and demand may grow.

2. Focus on Reducing Entry Costs: Look for ways to cover or offset closing costs in your deals to remain competitive. Even small amounts can be decisive.

3. Watch for Moves in Tax Policy: Capital gains tax relief could motivate more sellers. Be ready to act swiftly when listings emerge.

4. Get Mortgage-Rate Ready: If rates start sliding (even slightly), having pre-approvals and ready access to financing can position you to move ahead of other buyers.

5. Partner with Local Developers and Agents: Local partners can help identify opportunities when federal or local policy opens new pathways. Collaboration is often the key to execution.

Final Thoughts

No single policy can fix housing affordability overnight.

Experts agree that increasing supply (not just demand) is the long-term solution. But if a national housing emergency triggers meaningful reforms, these five levers may create new paths for everyday Americans to begin investing in real estate.

Would you like to explore how these shifts could align with your investment goals or local market? We’d love to learn more about your journey.

Let’s chat about how emerging policy changes might open doors for you.