Could a National Housing Emergency Be Declared? What It Means for Austin

Is the U.S. housing market in such bad shape that the White House is seriously considering a national housing emergency? Emergency powers are normally reserved for natural disasters but they may now be applied to housing. What would that mean for the country, and specifically for Austin?

I’m Jeremy Knight, your favorite Austin realtor, here to break it down.

What a Housing Emergency Could Mean Nationally

Reports suggest the Trump administration is weighing the National Emergencies Act to bypass Congress and force action on housing. If declared, the government could:

• Open federal land for new construction
  
  
• Override zoning restrictions and tariffs on building materials
  
  
• Adjust tax laws to push more homes onto the market
  
  

But here’s the problem: there’s no shortcut to supply. Builders still face high material costs, labor shortages, and rising insurance premiums. Economists say the U.S. has underbuilt housing for more than a decade & we’re millions of units short.

The consequences are already visible:

• Nearly half of renters spend more than 30% of their income on housing.
  
  
• On a single night in January 2024, 770,000 Americans were homeless.
  
  
• Treasury Secretary Scott Bessent warned: “The United States cannot thrive if working families cannot afford a place to live.”
  
  

The real issue isn’t just housing, it’s affordable housing. And here’s the catch: no one clearly defines what “affordable” means. Is it rent below $1,200? A mortgage under $2,000? Without specifics, the term is meaningless.

Where Mortgage Rates Are Headed

Mortgage rates have been on the move:

• Early 2025: hovering around 7%
  
  
• Recently: down to 6.28% (lowest in nearly a year)
  
  
• Late 2023 comparison: rates were over 8%
  
  

Why the drop? Slower job growth, weaker bond yields, and markets betting on Fed rate cuts. Most forecasts keep rates in the mid-6% range through the end of 2025.

This matters for buyers:

• On a $450,000 mortgage, dropping from 7% to low 6s saves hundreds per month.
  
  
• More sellers could also re-enter the market if rates fall, boosting inventory.
  
  

But remember, lower rates don’t fix the affordability crisis if prices stay high.

The Austin Housing Market: Stable, Not Collapsing

Now, let’s zoom into Austin real estate:

• Median home price (city): ~$680,000 (slightly up year-over-year)
  
  
• Metro average (Redfin): ~$555,000 (includes 5 counties)
  
  
• Zillow average value: ~$512,000
  
  

Compared to the peak, Austin home prices are still 13–16% lower. Inventory has climbed to around 5–6 months of supply, giving buyers more options. Homes sit on the market 60–70 days on average.

Beacio Grady from Unlock MLS summed it up: “This is the healthiest market Austin has seen in years. Buyers have options, sellers must be realistic.”

So why hasn’t Austin crashed like other markets? Jobs. Tesla, biotech, Whole Foods HQ, and a steady influx of tech startups continue to support the region. As housing consultant Jim Gaines explained: “Austin corrects, but it doesn’t crash.”

What This Means for Buyers & Sellers

• For Buyers: Falling rates mean more negotiating power. The frenzy is gone, inventory is healthy, and sellers are open to deals.
  
  
• For Sellers: Pricing realistically is crucial. Buyers finally have choices.
  
  
• For Austin: With zoning reform allowing more units on single-family lots, the city may see gradual relief in supply but it’s not an instant solution.
  
  

Final Thoughts

At the national level, the government may consider using emergency powers to tackle the housing crisis. At the local level, Austin continues to balance growth with affordability challenges.

For now, the market in Austin is stable, balanced, and healthier than it’s been in years but affordability remains out of reach for many until more homes are built and costs come down.

👉 What do you think? Would a national housing emergency declaration actually help?