'Crisis is real': Analyst warns Trump of looming plight that could doom presidency

Donald Trump managed to win a second term in large part due to the frustration of the electorate over prices — but there's a big economic crisis looming over the president-elect's head that could end up defeating him, Heather Long wrote for The Washington Post.

That crisis is the cost of a home.

"The housing crisis is real," wrote Long. "It’s one of the worst times to buy a home in 40 years. The median home price is now $420,000, nearly $100,000 more than four years ago. Mortgage rates are also up significantly from 2020. And nearly everyone agrees that the United States is short millions of homes."

Trump has boasted that under his presidency, people will be able to get 2 percent APR on a mortgage — but right now it's trending the wrong way, back up to 7 percent, driven in part by bond markets fearful Trump's tariffs will drive up the price of construction materials.

The fact is, Long continued, "High housing costs have become part of the economic 'vibes' — alongside gas and grocery prices — that people see on a regular basis. It’s easy to check housing apps for the latest prices. People who own their home and have a low mortgage rate feel stuck, and people who haven’t been able to buy yet worry they will never be able to own now."

And now their frustration over this will be directed at Trump, she wrote.

Vice President Kamala Harris campaigned on building five million new homes if she had been elected. Trump, for his part, proposed an idea of building new high-tech "freedom cities" from scratch on federal land back in 2023, but hasn't elaborated seriously on this idea. Meanwhile, he has also bragged about blocking higher-density construction in the suburbs and wants to conduct mass deportations, which could raise the cost of labor for home construction.

Long concluded that Trump's housing agenda could make inflation worse — and swiftly evaporate the benefit of the doubt voters gave him on the economy.

"Solving the housing crisis requires lower mortgage rates and building more homes," she wrote. "Trump can yell at the Fed for lower rates, but the bond market is what will move mortgage rates up or down. Right now, the bond market is watching every Trump move for signs of inflation and largesse. And so far, that’s what it sees."