Billionaire real estate developer Stephen Ross said that President Donald Trump’s administration has not done enough to address the U.S. housing affordability crisis, calling it "going to be the biggest issue going forward."

The administration's efforts include a move to ban institutional investors from buying single-family homes and a $200 billion mortgage bond-buying initiative.

Ross said the push to tackle housing affordability is "not enough."

Ross, founder and non-executive chair of Related Companies, known for spearheading the $25 billion Hudson Yards development in New York, blamed rising construction costs and union labor requirements for increasing homebuilding expenses. He said subsidies remain essential, adding, "We've always solved [the housing crisis] with subsidies," as reported by the Financial Times on Sunday.

However, Brad Case, chief residential economist at Homes.com, pushed back on the union labor argument, telling the Financial Times that the idea that unionized labor significantly drives housing costs "is not an uncommon one, but it is not especially well thought out." Data from the Bureau of Labor Statistics shows about 11% of the private-sector construction workforce belonged to a union in 2025.

Market Data Points To Ongoing Pressure

The broader data support Ross’s alarm. Mortgage applications fell 10.4% last week, according to the Mortgage Bankers Association, with refinance applications down 17% week-over-week. The average 30-year fixed mortgage rate rose to 6.57%, its highest level since August.

RH (NYSE:RH) CEO Gary Friedman described current conditions as "the most dire housing market in decades," citing tariffs, global tensions and economic uncertainty. The company reported adjusted earnings per share of $1.53, below the $2.22 consensus estimate.

Macro Trends Add To Housing Challenges

Broader economic data points to continued pressure on the housing market. U.S. fourth-quarter 2025 GDP growth was revised down to an annualised 0.5%, while core personal consumption expenditures (PCE) inflation stood at 3.0% year over year.

At the same time, borrowing costs remain elevated. The Federal Reserve is expected to keep interest rates high through 2026 based on market expectations, limiting near-term relief for prospective homebuyers.

Reflecting the softer outlook, Zillow Group Inc. ( ZG ) expects U.S. home prices to rise just 0.7% by the end of 2026.

Disclaimer: This content was produced with the help of AI tools and was reviewed and published by Benzinga editors.

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