The White House released an economic report Monday estimating the United States faces a shortage of 10 million homes, as rising mortgage rates continue to pressure the housing market. The analysis, part of the Economic Report of the President, comes as existing home sales hit a nine-month low in March.

According to White House economists, the housing shortage exists because homebuilding and single-family housing stock growth fell dramatically after the 2008 financial crisis and never returned to historical pace. The report notes that home prices have risen 82 percent since 2000 while incomes have increased only 12 percent, creating an affordability crisis that became more acute when mortgage rates jumped following pandemic-era inflation.

Average rates for 30-year mortgages have risen from just under 6 percent to 6.37 percent, contributing to declining home sales. The rate increases have made monthly mortgage costs significantly higher for potential buyers, making homeownership increasingly difficult for middle-class Americans, particularly those under 40.

The White House report proposes reducing regulatory burdens on home construction as a solution, estimating that various regulations add more than $100,000 in costs to building new homes. These costs include building code changes, compliance expenses, and zoning approval fees accumulated over the past decade. The administration argues that reducing these regulatory costs could spur construction of up to 13.2 million homes.

President Trump signed two executive orders in March directing federal agencies to reduce housing regulatory burdens and make mortgage lending easier for smaller banks. The report suggests the administration could make federal funding to state and local governments contingent on reducing construction regulations. The analysis also criticizes green energy housing standards introduced during the Biden administration, citing industry estimates that such standards could add up to $31,000 to new home prices.

The White House projects that reducing regulatory costs could add an average of 1.3 percentage points to annual economic growth over the next decade and support 2 million manufacturing and construction jobs. However, the report acknowledges that eliminating some energy efficiency requirements could increase long-term costs for homeowners through higher utility bills.