America faces a 7 million-unit housing deficit—a crisis that has quietly become one of the nation’s most pressing yet under-addressed issues. This shortage stems from challenges like regulatory barriers, chronic underinvestment, supply chain disruptions, and the pervasive politics of “NIMBY-ism” (Not in My Back Yard). Both Kamala Harris and Donald Trump acknowledged housing concerns during their 2024 presidential campaigns, but neither made it an essential part of their platform.
A few months into Donald Trump’s second term—marked by a whirlwind, “everything, everywhere all-at-once” style of governance—the details of his strategy for tackling America’s housing crisis remain elusive. However, given his penchant for bold, unconventional policymaking—seen in his efforts on everything from disrupting government bureaucracy to upending global trade—it’s reasonable to expect a similarly distinctive approach. Moreover, housing is perhaps the policy area where Trump’s instincts and experience align most naturally; after all, he spent his career in real estate before entering politics. If any issue is primed for a uniquely Trumpian imprint, it’s this one—and he may call on his billionaire friends to help deliver results.
Exterior view of modern apartment building offering luxury rental units in Silicon Valley.
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America’s housing crisis has reached a fevered pitch, hitting hardest in two key areas: affordable housing for low-income families and workforce housing for middle-income earners like police officers, teachers, civil servants, and private-sector staff. Low-income households—those earning less than 80 percent of the local median income, according to the Department of Housing and Urban Development (HUD) —often rely on subsidized housing but face long waitlists and a severe lack of supply. Meanwhile, middle-income families, earning just above that cutoff, find themselves priced out of the communities they serve. This growing squeeze on both the lower and middle rungs of the income ladder threatens not just economic opportunity but the basic stability of local economies. With housing contributing up to 15 percent of the U.S. GDP, no sector may be more central to President Trump’s economic agenda.
“There’s no question we need new solutions, and we need them now,” said Paul Sween, chairman of Dominium, one of the country’s largest residential builders of affordable and workforce housing. “The housing gap across this country is tremendous, and it’s only growing. Making a real dent in the crisis will require bold, innovative thinking and a multi-pronged effort that brings together public and private forces. Housing is the backbone of the U.S. economy. And addressing America’s housing problem will go a long way toward fixing many other issues we face as a nation—the home is the center of so much in our lives.”
Developer Nick Rojo is pictured with Arick Wierson.
Photo Courtesy of Motionette
One solution gaining traction is leveraging mega-philanthropy to unlock new models for financing affordable and workforce housing. The idea, known as philanthropic private equity, taps into the resources of wealthy individuals and family offices—many of whom already donate millions annually to address society’s toughest challenges. A growing number of these ultra-wealthy donors have signed the Giving Pledge, a public commitment to give away the majority of their wealth; collectively, these pledges now exceed $1 trillion. Notable signatories include multibillionaires Elon Musk and Larry Ellison. The model envisions mega-donors providing interest-free loans to private developers—a relatively modest investment that can bridge critical financing gaps and make affordable and workforce housing projects viable without relying on public funds.
This innovative financing model is already being implemented in Palm Beach County, where affluent residents of Palm Beach Island—home to Trump’s Mar-a-Lago—are offering philanthropic, zero-interest loans to support workforce housing projects just across the bridge in working-class West Palm Beach. Some experts believe it could become a national blueprint, and one that Trump is well-positioned to champion and scale.
Sean Davis, managing partner at Merton Capital Partners, a firm that helps put together these types of innovative deals, estimated that $100 billion—10 percent of the commitments in the Giving Pledge—could produce over 1 million affordable homes.
“There isn’t a lot of capital in the system to build housing for the people who need it,” Davis told Newsweek. “We want to use philanthropy to step into the private market of private housing and allow developers who have capacity to build more to do so.”
West Palm Beach Mayor Keith James is pictured with Arick Wierson.
Photo Courtesy of Motionette
Developer Nick Rojo, president of Affiliated Development, has already demonstrated success using this model in West Palm Beach. “Philanthropy is actually replacing equity in the capital structure,” Rojo said.
West Palm Beach Mayor Keith James described this approach as transformative.
“The inventory deficit is too large,” he said. “Philanthropic dollars can be very important because to really address the housing crisis in this country, it’s going to take buckets of money from all over.”
To what extent Trump will rally the ultra-wealthy to direct their philanthropy toward housing remains to be seen—but the model is already unfolding around him in Palm Beach and is supported by members of his social circle. The housing shortage persists, and Trump is hesitant to rely on government spending. Politically, making a visible impact on this crisis would be advantageous. By effectively engaging his billionaire network, Trump could transform private wealth into substantial, enduring solutions, reshaping America’s housing future.
Millions of American families are counting on it.
Arick Wierson is a six-time Emmy Award-winning television producer and served as a senior media and political adviser to former New York City Mayor Michael Bloomberg. He advises corporate clients on communications strategies in the United States, Africa, and Latin America.
The views expressed in this article are the writer’s own.