Bessent says more housing supply is needed as US market remains stuck

U.S. Treasury Secretary Scott Bessent believes the housing market needs more supply, pointing to a problem that continues to keep home prices and affordability under pressure. His comments come as the U.S. housing market remains caught between high mortgage rates, expensive homes and limited movement from existing homeowners. The housing market has struggled to regain momentum in 2026. Mortgage rates have remained elevated, while home prices have stayed high in many parts of the country. That has created a difficult situation for buyers who are facing expensive monthly payments but are not seeing a major drop in property prices. Bessent sees housing supply as a key problem Bessent's view puts the focus on the supply side of the housing market. More homes being built could give buyers more choices and potentially reduce some of the pressure that has kept prices elevated. The issue is particularly important because many existing homeowners are reluctant to sell. Millions of homeowners locked in much lower mortgage rates during the pandemic. Selling their homes and taking out a new mortgage at today's higher rates can mean a significant increase in monthly costs. 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 housing inventory has prevented prices from falling sharply. The problem is also affecting renters and developers. Higher financing costs can make new construction more expensive, potentially discouraging builders from adding homes quickly enough to meet demand. At the same time, people unable to afford a home may remain in the rental market for longer, keeping pressure on rents. Bessent's comments therefore point toward a longer term solution rather than relying only on interest rate changes. If more homes can reach the market, buyers could eventually have greater negotiating power. More homes could change the housing market The supply issue is becoming increasingly important for U.S. policymakers because lower mortgage rates alone may not solve the affordability problem. If rates fall but the number of available homes remains limited, stronger demand could simply push prices higher again. That makes construction and housing supply a major part of the broader economic debate. The U.S. housing market has already experienced a sharp slowdown, with home sales expected to remain weak. For buyers, the key question now is whether new construction can increase enough to break the current market freeze. If supply expands meaningfully, it could create more room for buyers and ease price pressure. If construction remains constrained, high prices and limited inventory could continue to keep the housing market stuck.