WASHINGTON, D.C. — White House economists estimate the United States has a shortage of 10 million houses and propose cutting construction regulations to spur the building of as many as 13.2 million new homes, according to the housing chapter of the Economic Report of the President. The report lays out a blueprint for how more home construction would stabilize prices, increase homeownership and accelerate economic growth.

The report finds that there would be 10 million more houses in the country if homebuilding and the growth of the single-family housing stock had continued at their historical pace instead of falling dramatically after the 2008 global financial crisis. That crisis was caused largely by a wave of defaults in the housing market, where prices had been fueled by problematic lending practices.

Regulations on home construction add more than $100,000 in costs to building a home, the report states. Those costs include changing building codes over the past decade, compliance costs and zoning approval fees, among other expenses. The report refers to those regulatory costs as "the bureaucrat tax."

A reduction in those costs could spur construction of as many as 13.2 million homes, the report estimates. That level of construction could add an average of 1.3 percentage points to annual economic growth over the next decade and support 2 million manufacturing and construction jobs.

The report also criticizes green energy housing standards introduced during the Biden administration as a factor in increasing construction costs. Those standards gave preferences for more efficient air conditioning units and water heaters and required higher standards for related duct work. A 2021 analysis by the National Association of Home Builders estimated the standards could add up to $31,000 to the price of a new home and that it could take as many as 90 years for a homebuyer to realize a payback on the added cost. A federal judge in Texas ruled that the standards for federally backed housing were unlawful in a case brought by 15 states led by Republicans. Removing some of those green energy requirements could increase other costs for homeowners over the long run, such as utility bills.

Since 2000, home prices have risen 82% while incomes have increased 12%. In the aftermath of the pandemic, mortgage rates jumped with inflation and monthly mortgage costs increased for buyers. The average rate for 30-year mortgages has increased from just under 6% to 6.37%.

President Donald Trump signed two executive orders in March directing federal agencies to reduce housing regulatory burdens and make it easier for smaller banks to provide mortgages. Trump could decide to make federal funding to state and local governments contingent on reducing some housing regulations, an administration official said. The March executive orders and plans to purchase mortgage-backed securities demonstrate that the president is focused on housing issues, the White House said.

"I want to drive housing prices up for people that own their homes, and they can be assured that's what's going to happen," Trump said.