White House economists have released a sweeping analysis concluding that the United States faces a shortage of roughly 10 million homes, and arguing that cutting construction regulations could help stabilise prices, expand home ownership and accelerate economic growth. The findings, contained in the annual Economic Report of the President and obtained by the Associated Press ahead of its official release on Monday, represent both a political vulnerability and a potential messaging opportunity for President Donald Trump, whose approval ratings have slipped amid concerns over tariffs, the US-Israel war on Iran, and unfulfilled promises to reduce inflation.

The report, prepared by staff at the White House Council of Economic Advisers — the body of economists that advises the president on domestic and international economic policy — traces the housing gap to a dramatic slowdown in construction following the 2008 global financial crisis, which was triggered largely by a wave of mortgage defaults fuelled by reckless lending practices. Had homebuilding continued at its historical pace after that crisis, the country would today have 10 million more units. The consequences have been stark: home prices have risen 82 percent since 2000, while incomes have grown just 12 percent. For years, historically low mortgage rates masked that disparity, but when rates surged in the wake of the Covid-19 pandemic, monthly mortgage costs jumped sharply. Owning a home — long a marker of middle-class stability in the United States — has since become a top financial anxiety for voters under 40.

The report frames local and state regulations as a central driver of high construction costs, labelling them a