'One Of The Biggest Problems Is The Price Of Energy,' Donald Trump Says When Reporter Asks How He Proposes Making Housing More Affordable

During a recent interview with ABC 15 in Phoenix, former President Donald Trump tackled a topic that’s been on the minds of many Americans – how to make housing more affordable. With the cost of living skyrocketing, especially in cities like Phoenix, people struggle to keep up with rent and mortgage payments. When a reporter asked Trump how he'd address the issue, he had a straightforward answer: start with energy costs.

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"One of the biggest things, one of the biggest problems is the price of energy," Trump said. "The price of your air conditioning, heating, all of these different things having to do with energy. I’ll be bringing that down. I’ll be bringing some states down much more than 50%." 

He believes that by slashing energy costs, inflation will take a hit, and people will feel more relief in their wallets. "That's going to have a huge positive impact on inflation, and it's also going to make it good for people."

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Trump's plan is to increase energy production – what he terms "drill baby drill" – to lower prices, including interest rates. 

While Trump may seem optimistic about his plan, others are more wary about long-term housing affordability. With record-high home prices and interest rates, it's difficult for new buyers to find a home within their budget. The "lock-in effect" is also hurting supply. 

People who already own their homes don't want to pay higher prices for something new, plus potentially hundreds more a month for a higher interest rate. 

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Michael Gapen, head of U.S. economics at Bank of America, told CNN, "Why would I sell unless I have to? Prices have gone up and the mortgage rate is a lot higher. So, I'm content to stay where I am."

With fewer homeowners moving, the supply of existing homes is limited. Bank of America says this lock-in effect could last another six to eight years even if mortgage rates drop. So, as appealing as lower energy prices and interest rates are, they may not have the desired effect on the housing market that Trump is touting. 

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Energy experts are also concerned about the environmental impact of increased fossil fuel production. According to NASA, 2022 and 2023 saw record increases in carbon dioxide from fossil fuels. Ben Poulter, scientist at NASA's Goddard Space Flight Center, said, "Emissions are heading the wrong direction that we need to limit global warming."

While Trump's ideas might ease financial pressure, they may come with their own set of costs. Combining efforts to reduce energy costs with policies that boost affordable housing and tackle higher interest rates could offer a more sustainable path forward. 

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