Less regulation, more housing: Trump's plan to lower costs

The Trump administration seeks to reduce the regulatory burden on the housing sector by simplifying permits and eliminating restrictions considered costly, with the aim of facilitating access to homeownership in the United States.

The administrator of the Environmental Protection Agency, Lee Zeldin, said the federal government intends to push for changes to make state and local authorities revise zoning regulations that, according to the administration, make it expensive and slow down home construction.

During an interview on the John Solomon Reports podcast, Zeldin advocated a model with less government intervention in the rebuilding and urban development processes. "Landowners know better than the government how best to rebuild," he said, while advocating reducing bureaucracy and streamlining permit approvals.

The official also proposed the implementation of "one-stop shop" systems for processing permits, as well as greater participation of the private sector in construction processes, in order to reduce costs and time.

Context: Slow post-fire reconstruction

The statements come against a backdrop of criticism for the slow pace of reconstruction following recent disasters, such as the Palisades fire in California, which destroyed nearly 13,000 homes. More than a year later, only a little more than 3,000 permits have been issued and a few dozen homes have been rebuilt, according to the New York Post.

Zeldin attributed this delay, in part, to the complexity of regulatory processes and administrative requirements at the state and local level.

Executive order to reduce barriers

In early March, Trump signed the executive order dubbed Eliminating Regulatory Barriers to Affordable Housing Construction, which instructs federal agencies to identify and reduce regulations that hinder residential development.

The proposed measures include slower permitting requirements, limiting administrative fees and allowing the use of certified third-party inspections. It is also proposed to review renewable energy requirements when they significantly increase construction costs.

The order also contemplates evaluating restrictions on prefabricated housing, an alternative that the administration considers key to lowering housing affordability.

Focus on the private sector

Zeldin stressed that the initiative aims to "empower individuals and the private sector" by promoting a more flexible environment for homebuilding. To that point, he advocated limiting government intervention "to what is strictly necessary" to promote efficiency and affordability.