When Donald Trump returned to the Oval Office, he  pledged — on Day One — to address the nation’s housing affordability crisis by lowering costs and increasing the supply of housing to put the American Dream of homeownership back within reach. Early signs suggest he’s making good on that promise.

A year ago, the 30-year fixed-rate mortgage was hovering above 7%, and purchase applications were declining. On May 22, Freddie Mac reported that 30-year mortgage rates are already 2.5% lower than they were right before Trump took office. Earlier in the month, Freddie Mac stated, “Rates are lower and have remained stable for weeks, sparking continued increases in purchase applications.”

The latest S&P Core Logic data, released May 27, found that home prices in the 20 largest metropolitan areas dropped for the first time in two years and that prices could fall further.

As a former Federal Housing Commissioner during the first Trump administration, I’m not surprised the housing market is improving. The administration has aggressively promoted pro-growth housing policies, and, slowly but surely, they are proving effective.

Among the innovative approaches to boost housing supply is a joint task force — led by Housing and Urban Development Secretary Scott Turner and Department of Interior Secretary Doug Burgum — to identify underused federal land for residential developments. Because the federal government manages nearly 30% of all land in the U.S., there’s ample opportunity to create a housing supply without adding more bureaucracy.

HUD’s housing policy expertise will be combined with DOI’s stewardship of more than 500 million acres to identify buildable sites — including vacant lots, former military bases, or parcels near cities with existing infrastructure — while steering clear of national parks and sensitive ecological areas. HUD will identify high-demand regions in coordination with local and state officials, and DOI will facilitate the transfer or lease of land to localities to address housing needs, ensuring affordability remains central in the process.

Building on federal land offers a practical solution — no costly land grabs, no endless red tape — and creates a collaborative process between the public and private sectors. It’s such a compelling idea that it has garnered bipartisan support. Sen. Ruben Gallego, a Democrat from Arizona, applauded the initiative, calling it a “creative solution to housing shortages” in western states.

Solutions to increase housing affordability continue to unite Republicans and Democrats. Senators Todd Young, R-Ind., and Maria Cantwell, D-Wash., and Representatives Darin LaHood, R-Ill., and Suzan DelBene, D-Ala., have introduced the American Housing Credit Improvement Act. It would expand and strengthen the popular Low-Income Housing Tax Credit, the nation’s primary tool for financing affordable rental housing.

These efforts are evidence that Republicans and Democrats understand the only way to address our housing shortfall is to build our way out of it.

Len Wolfson served as the assistant secretary for congressional and intergovernmental relations and acting Federal Housing Administration commissioner from 2017 to 2020.