Trump’s housing market plan contains a fatal flaw and multiple obstacles, Morgan Stanley says

Despite a flurry of aggressive policy announcements from the White House aimed at unlocking the frozen U.S. housing market, strategists at Morgan Stanley argued this month that the measures won’t significantly alter the landscape for prospective homebuyers in 2026.

In a research note released on Jan. 18, strategists James Egan and Jay Bacow characterized President Trump’s recent directives as only “modestly helpful for homeowner affordability,” warning that they ultimately amount to a marginal adjustment rather than a market cure.