Bessent says more housing supply is needed as US market remains under pressure

U.S. Treasury Secretary Scott Bessent believes the U.S. housing market needs more supply, highlighting one of the biggest problems keeping home prices and affordability under pressure. His comments come as buyers continue to face high mortgage costs, expensive homes and limited housing inventory. The housing market has struggled to regain momentum in 2026. Mortgage rates remain elevated, while home prices have stayed high across many parts of the country. This has left buyers facing expensive monthly payments without a major decline in home prices. Bessent sees housing supply as a key problem Bessent's comments put the focus on the supply side of the housing market. Building more homes could give buyers more choices and ease some of the pressure that has kept prices elevated. The issue has become more complicated because many existing homeowners are reluctant to sell. Millions of homeowners locked in much lower mortgage rates during the pandemic. Selling now and taking out a new mortgage at today's higher rates could significantly increase their monthly payments. That has contributed to a market where fewer people are moving. Apollo economist Torsten Sløk recently said the share of households planning to move within the next year has fallen to around 7%, a record low. US housing market faces affordability pressure The lack of movement has created a difficult environment for prospective buyers. Higher borrowing costs have made mortgages more expensive, while limited inventory has prevented home prices from falling sharply. The supply problem is also affecting renters and developers. Higher financing costs can make new construction more expensive and discourage builders from adding homes quickly enough to meet demand. Meanwhile, people who cannot afford to buy may stay in the rental market for longer, keeping demand for rental homes elevated. Bessent's comments point toward a longer term solution rather than relying only on lower interest rates. If more homes reach the market, buyers could have more choices and greater negotiating power. More homes could ease housing pressure The supply issue is becoming increasingly important for U.S. policymakers because lower mortgage rates alone may not solve the affordability problem. If borrowing costs fall while housing supply remains limited, stronger demand could push home prices higher again. That makes construction and housing supply an important part of the broader economic debate. For buyers, the key question is whether new construction can increase enough to break the current market freeze. A meaningful increase in supply could give buyers more room to negotiate and gradually ease price pressure. Without it, high prices and limited inventory could continue to weigh on the U.S. housing market.