Mortgage Giants Fannie Mae, Freddie Mac Urged by Trump To Help as He Accuses Big Homebuilders of Sitting on '2 Million Empty Slots'

US President Donald Trump on Sunday evening, 5 October 2025, accused major homebuilders of deliberately holding back housing construction.

Because of this, Trump called on mortgage giants Fannie Mae and Freddie Mac to step in and push builders into action, saying it was time to 'help restore the American Dream'. He said developers now had access to financing, so there was 'no excuse not to build'.

Trump Says Big Homebuilders Are Just Like OPEC

Trump's Truth Social post drew widespread attention after he likened homebuilders to the oil cartel OPEC, accusing them of manipulating the market.

'They're sitting on 2 million empty lots. I'm asking Fannie Mae and Freddie Mac to get Big Homebuilders going and, by so doing, help restore the American Dream', Trump said on Truth Social.

He added: 'They're my friends. They're very important to the success of our country but now that they can get financing, they have to start building homes'.

According to News Nation, the comparison was seen as part of Trump's push to tackle housing affordability, a central theme of his 2024 campaign. His remarks followed repeated promises to make home ownership more accessible for American families struggling with high mortgage rates and rising rents.

Trump Asks Fannie Mae, Freddie Mac for Help

Trump urged Fannie Mae and Freddie Mac — the two government-sponsored mortgage enterprises — to take an active role in encouraging developers. He said the agencies should use financing programmes and federal support to boost construction.

According to reports, Trump's request ties into his administration's 'American Dream Restoration' initiative, launched in January 2025 through an executive order directing agencies to increase housing supply and provide pricing relief. He said the two mortgage giants could ensure that builders use available funds for new homes rather than keeping land idle.

While the idea gained attention, analysts noted that Fannie Mae and Freddie Mac have limited influence over construction decisions. Their role focuses mainly on mortgage lending and market liquidity, not development.

Trump Criticised for Attacking Homebuilders

Trump's comments faced backlash from housing experts. Bryan Caplan, economist at George Mason University and supporter of the YIMBY ('Yes In My Backyard') movement, called the OPEC comparison 'bizarre'.

'OPEC is a small cartel that limits output to raise prices. US homebuilding involves thousands of firms desperate to build more but constantly blocked by red tape', Caplan said. He argued that zoning restrictions and slow local approvals, not corporate greed, were the main causes of limited housing.

The National Association of Home Builders (NAHB) agreed that affordability was a major issue but warned against oversimplifying the problem. 'President Trump is right to focus on housing affordability... Achieving that goal will require builders of all sizes, working with the administration, to overcome the complex government barriers that slow down new construction,' the group said in a statement.

The NAHB also noted that Trump's tariffs and tighter immigration policies had added to construction costs by raising prices for materials and reducing available labour.

Is There a Housing Shortage in the US?

Data suggest that the current situation is complex. Redfin reported that homes for sale rose 10.6% in August 2025 compared to the same period last year, while home sales fell 2.6%. Prices still climbed 1.5%, with the average new home costing over $500,000.

A September 2025 survey by NAHB and Wells Fargo found that 64% of single-family builders reported a low supply of lots, and 26% said it was 'very low'. Experts said this shortage was due to zoning and permit delays, not withheld land.

Caplan stressed that financing was not the real issue. 'They all have Fannie and Freddie, so the difference clearly isn't financing — it's freedom to build', he said.

Trump's push for Fannie Mae and Freddie Mac's involvement underscores growing concern about affordability in the US housing market. Whether his approach will lead to more homes, however, remains uncertain.