President Donald Trump recently issued an executive order aimed at slashing the cost of buying a home for Americans. The move comes as housing prices have soared, making homeownership increasingly out of reach for many. But how effective will this plan really be?

The order highlights that federal regulations account for a significant chunk of home construction costs, citing a study that found regulations contribute to nearly 25% of the price of a new home. While cutting these rules could help lower expenses, many regulations are enforced by state and local governments, which the federal government can’t directly control.

Even if federal rules are relaxed, other factors could keep housing costs high. Trump’s proposed tariffs on Canadian lumber, for example, could drive up the price of building materials. And plans for mass deportations might shrink the construction workforce, pushing labor costs even higher.

Affordable housing is in short supply across the U.S., especially as millennials enter the market in large numbers. High interest rates aren’t helping either. Mortgage rates have more than doubled since early 2021, making it harder for buyers to secure loans. Closing costs have also risen sharply, adding another financial hurdle.

While Trump’s focus on cutting red tape might offer some relief, experts say the real solution lies in building more homes to meet demand. Without addressing broader issues like labor shortages and rising material costs, the dream of affordable housing might remain just that—a dream.

For now, the impact of Trump’s plan remains uncertain. As the administration rolls out its policies, the housing market will likely face a mix of challenges and adjustments. Stay tuned to see how this plays out for homebuyers across the country.