Trump Expected To Unveil Plan To ‘Bring American Dream Back for Working People’ in SOTU Speech

President Donald Trump plans to highlight a sweeping economic agenda focused on the working class in his State of the Union address Tuesday night, with housing affordability likely to be in the spotlight.

"The president will proudly tout his administration's many record-breaking accomplishments, and also lay out an ambitious agenda to continue bringing the American dream back for working people," White House press secretary Karoline Leavitt tells Realtor.com®.

Trump has previously said that he believes "affordable homeownership is a fundamental part of the American dream" and vowed to expand homebuying opportunities to millions who are priced out of the market, raising the possibility that his speech will include new initiatives on the topic.

Leavitt says that in addition to highlighting his domestic economic plan, Trump's speech will strike a celebratory note to mark the 250th anniversary of the country's founding.

"President Trump's State of the Union address will celebrate 250 glorious years of our nation's independence and excellence, highlighting incredible stories of American heroes throughout the speech," says Leavitt. "In one year, President Trump has turned our country around from the brink of disaster, and he will rightly declare the State of Our Union is strong, prosperous, and respected."

Trump's focus on economic issues comes as cost-of-living concerns loom large for many Americans, with housing affordability a particular source of pain, particularly for younger people.

The average first-time homebuyer is now 40 years old, a record high. Rising prices have also meant a slump in home sales, which are at three-decade lows.

"Housing affordability is at a crisis level, with the worst three readings in the last 25 years coming from each of the three prior years," says Realtor.com Chief Economist Danielle Hale. "This has attracted attention from both sides of the political aisle and from the president himself."

Trump has said his goal is to make buying a house more attainable for young people. But he also insists he will avoid any moves that bring down existing-home values, goals the president admits are in conflict.

So far, Trump's signature move on housing has been an executive order that places restrictions on large institutional investors buying single-family homes, an idea that has bipartisan support but will likely have little impact on overall home prices.

Trump also directed government-controlled mortgage giants Fannie Mae and Freddie Mac to purchase an additional $200 billion in mortgage bonds, a move designed to ease mortgage rates.

Mortgage rates have fallen since the January announcement, reaching a three-year low of 6.01% last week, according to Freddie Mac.

However, industry experts have questioned whether the bond buying spree will have a significant or sustained impact on rates, as the $200 billion figure represents a small fraction of the overall mortgage market, estimated at around $12 trillion.

Trump may use SOTU to call on Congress to act

For its part, Congress has found some bipartisan momentum on housing affordability, and Trump may use his bully pulpit to press for action Tuesday night.

The House this month overwhelmingly passed the Housing for the 21st Century Act, which has 25 provisions aimed at easing access to financing, speeding home construction, and improving accountability of public housing authorities.

The Senate passed a similar bill last year, but the two versions must be reconciled before the legislation can move to the president's desk.

Trump's executive order on institutional homebuyers also calls on Congress to implement a more comprehensive ban, a demand that the president may reiterate in his State of the Union speech.

Lawmakers have introduced a series of other housing-related bills. A pitch to double the capital gains tax exclusion to allow people to sell a home without a large tax penalty—a frequent aim of the National Association of Realtors® and other real estate groups—has over 100 co-sponsors.

As well, about a dozen states are considering changes in zoning at the local level that would allow for denser housing and speedier construction of starter homes. While those rules fall outside of federal control, a presidential exhortation may grease the wheels.

Other potential housing topics for SOTU

Trump has focused extensively on mortgage rates as the pathway to home affordability, and in his speech he will likely highlight the meaningful decline in rates since his second term started a year ago.

Rates on 30-year fixed mortgages are roughly a full percentage point lower now than they were in January 2025, when they briefly jumped above 7%.

Trump has frequently blamed elevated mortgage rates on the Federal Reserve, and Fed Chair Jerome Powell in particular. In Tuesday's speech he's likely to tout his nomination of Kevin Warsh to take over as chair when Powell's term ends in May.

As far as policy proposals, it's unclear whether Trump will resurrect any of the various proposals his administration has previously floated, or even put forward a new policy.

Previous ideas from the administration have included a 50-year mortgage and the ability to make penalty-free early 401(k) withdrawals, although both appear to have fallen out of favor with Trump.

Trump is scheduled to deliver his State of the Union speech at 9 p.m. EST on Tuesday. It will air on all major television networks, and stream for free online on C-SPAN.