42 States Declared Housing Emergency? Trump's Plan & How to Profit

We're facing a Trump housing crisis that's reshaping America's future, and I'm not exaggerating when I say this could determine whether you'll ever own a home or be stuck paying rent forever.

President Trump recently signed Executive Order 14154, reopening 625 million acres of offshore federal land for energy development. 

At the same time, 42 states have declared housing emergencies, yet the White House just fast-tracked billions in federal loans to corporate landlords like Blackstone's Invitation Homes under Trump's emergency price relief order.

There are real reasons behind the housing market crash we're seeing. And now, President Donald Trump has a plan to fix it.

Let’s break it all down—why this crisis is happening, what Trump is proposing, and what it all means for real estate investing and your financial future.

America's Housing Shortage By The Numbers

Currently, we're 1.2 million homes nationally behind. We need those 1.5 million homes just to stabilize prices. But here's the hidden truth: the total shortage could exceed 4.4 million homes when accounting for all the latent demand in the market.

Then there's the construction labor crisis. Right now, 501,000 workers are needed to overcome this deficit. The shocking projection is that 1 million plus workers will be needed by 2026, as 1.9 million are quitting annually. If you're in the construction industry, you know how real this is.

Material costs? They're up 30% from pre-2020 levels. Concrete is up 15%, copper is up 45%, and electrical components have skyrocketed by 128%. The killer stat here is lumber prices, which tripled in 6 months during COVID and are still 60% above pre-pandemic prices.

Builders are completing 1.6 million units annually, but we need 1.7 million just to break even. Every year, we fall further behind. And Trump fast-tracked $7.6 billion but builders confirm 93% will go to REITs (Real Estate Investment Trusts), not families. 

Why? Because material costs are spiking 45% faster on federal sites due to tariffs.

The Demographic Time Bomb That's Locking Out Generations

Now, let's talk about the demographic crisis that's brewing. The majority of Gen Z – over 70% – are completely locked out of home ownership due to skyrocketing prices and stagnant wages. 

The new reality? You need a minimum income of $64,500 for a starter home, versus the median wage of $52,000.

Gen Z homeownership dreams are being crushed before they even begin. Millennial homeowners are delayed by 2 years compared to previous generations, with 17 million of them stuck renting despite being in their peak earning years.

Then there's what I call the "silver tsunami" – the number of renters over the age of 65 has surged by over 40% in the last decade, with millions more expected by 2030. This isn't just a young person's problem – it's spanning generations.

The Institutional Land Grab Is Happening Right Now

You've probably noticed more "for rent" signs in neighborhoods that used to be all homeowners. Here's why: Corporate landlords now own 3% of single-family homes, projected to reach 7% by 2030. 

The hidden fact? One in four new single-family homes built will be used as rentals, making entire neighborhoods locked into permanent rental status.

They're not building suburbs anymore – they're erecting rental fortresses. Last month alone, 990,000 units were started, all exempt from local rent controls under Chapter 103. This is Blackstone real estate and other institutional investors positioning themselves to profit from America's housing crisis.

Through real estate loopholes, these institutional investors are securing billions in government-backed funding while regular families struggle to qualify for a simple mortgage. The Trump executive order has unintentionally accelerated this trend, creating a two-tier housing system that favors corporate ownership.

Looking for a way to still generate cash flow in this challenging market? Cash Flow Savvy helps everyday people create passive income through rental property investing even in this turbulent market.

America's Path to Becoming a Renter-Majority Nation

Unless current trends are interrupted, by 2035, America will officially become a renter-majority nation. That means more people renting than owning homes for the first time in history.

The primary cause? The affordability nightmare. Home prices are up 47% since 2021, the fastest surge in 50 years. Mortgage payments are 40% higher than pre-pandemic at 7% rates. The average down payment is projected to hit a staggering $110,000 by 2035.

Rents are growing 1.5 times faster than wages since 2019, with the average rent consuming 30% of the median household income. Here's a killer insight: every 1% rent increase pushes 150,000 Americans into housing poverty. 

The average renter now spends $12,200 more annually than pre-pandemic. That's someone's entire retirement contribution gone.

Geographic pressure is making it worse: 40% of rental demand is concentrated in just three states. Zoning restrictions are blocking high-density development, with 73% of residential land prohibiting multi-family housing. 

This isn't just a housing market crash in the making. We’re talking a complete restructuring of American life.

Recent Political Developments Are Accelerating This Crisis

Much of this we've known for a while, but here's why this trend exploded recently:

First, there's the political firestorm around Project 2025, Chapter 15. The Heritage Foundation mandates elimination of "discriminatory" fair housing laws and redefines federal assistance eligibility. 

This means one in three zip codes could lose all affordable housing protections by the third quarter of 2025.

Second, the emergency declarations: On February 19th, the US Conference of Mayors announced that 42 states are now under housing state of emergency. This means 42% of households are now cost-burdened – up from 33% in 2024.

Third, there's the corporate feeding frenzy: Blackstone's Invitation Homes secured $7 billion in USDA-backed loans for Homestead Siege developments. This means one in four new single-family homes are now corporate-owned rentals.

If you're following housing market news, you know these developments represent a shift in American housing policy, with direct implications for the real estate economy and your personal financial future.

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The 2035 Projections: We're Headed for Two Different Americas

All this data projects three critical shifts by 2035:

1. Vacancy rates will drop to 4% from 6.6% today

2. Rent growth will exceed 5% annually

3. 32.1 million aging homeowners will transition to renters

Because of these shifts, we're looking at two very different Americas via two distinct paths:

• Path A: Renters paying $2 million+ over their lifetime to landlords (statistically probable for most Americans)

• Path B: Owners and builders capturing $12 trillion of wealth transfer

This isn't speculation. The Fed's own models show that housing starts will crash to 800,000 a year by 2050. The window is closing, and the question is: which path do you want to be on?

Positioning Yourself on the Right Side of History

While millions are being priced out of homeownership (those headed down Path A), there's another group quietly cashing in – those on Path B. And I'm not just talking about big corporations buying up entire neighborhoods, though they're doing that too. 

I'm talking about everyday people like you who've figured out how to position themselves on the right side of this tidal wave.

Think about it: rents have been rising 1.5 times faster than wages since 2019. That's money flowing straight into landlords' pockets every single month. And with a housing shortage of over 4 million rental units projected by 2035, this trend isn't slowing down anytime soon.

If you stayed with me through this analysis, you're probably wondering how to position yourself on the right side of this crisis. Because you might have noticed by now that this isn't just market analysis – it's a roadmap to opportunity. 

As they say, a rising tide lifts all boats, so smart investors are using these exact trends to get as many boats in the water as possible.

The fascinating part? The most successful ones aren't doing it the traditional way. Our data shows that investors using systematic, hands-off approaches are seeing average first-deal returns of $25,000+. 

We're tracking portfolios that have scaled to seven figures without ever dealing with traditional landlord headaches.

Your Options in 2025

Looking at the mortgage rates 2025 projections and current real estate trends, the traditional path to homeownership is becoming increasingly difficult. But that doesn't mean you should give up on investing in real estate altogether.

In fact, the current homeownership crisis has created unique real estate opportunities for those who know where to look. The key is developing a rental property strategy that takes advantage of these market conditions rather than being victimized by them.

When we look at buying vs renting purely from a financial perspective, owning still builds wealth in the long term. But the barrier to entry has never been higher. That's why creative approaches to real estate investing are becoming essential tools for financial survival.

The data is clear, the trends are established, and the window of opportunity is narrowing. Which path will you choose?