In a bold move to address the escalating U.S. housing affordability crisis, Treasury Secretary Scott Bessent announced that President Trump is contemplating declaring a “national housing emergency” this fall.
Speaking to the Washington Examiner, Bessent emphasized the administration’s focus on tackling soaring home prices and limited inventory, a critical issue as the 2026 midterms approach. Potential actions include standardizing local building and zoning codes, reducing closing costs, and exploring tariff exemptions for construction materials to boost housing supply.
These measures aim to ease the financial burden on homebuyers and renters alike, with Bessent noting that declining rents and anticipated Federal Reserve rate cuts could spur real estate transactions.
If Trump follows through with these reforms, could this be a golden opportunity for investors to capitalize on housing market stocks? Specifically, are Opendoor Technologies (NASDAQ:OPEN), Zillow (NASDAQ:Z), and D.R. Horton (NYSE:DHI) poised for gains?
Opendoor Technologies (OPEN)
Opendoor Technologies, with its innovative iBuying model, purchases homes directly from sellers to streamline transactions and charging a roughly 5% commission. However, skepticism surrounds its viability in a volatile market.
The iBuying program, while efficient, exposes Opendoor to significant risks, particularly in a stagnant housing market where home prices remain stubbornly high. Redfin data highlights a 36% surplus of sellers over buyers, the widest gap since 2013, signaling potential inventory risks for Opendoor’s buy-and-hold strategy.
Moreover, OPEN’s status as a meme stock favorite — down over 90% from its 2021 highs, but up 113% in the past month — adds volatility, as its price is driven more by speculative retail investor enthusiasm than by fundamentals. A national housing emergency could increase transaction volume, but Opendoor’s high operational costs and exposure to market downturns make it a risky investment.
Investors should approach with caution, as the stock’s meme-driven swings may not align with long-term stability, even with policy tailwinds.
Zillow (Z)
Zillow is a leader in online real estate marketplaces and thrives by connecting buyers, sellers, and agents without direct exposure to property ownership risks. Its revenue model, primarily based on charging agents for buyer leads, positions it to benefit from increased market activity spurred by a housing emergency declaration.
Bessent’s optimism about rising real estate transactions after Federal Reserve rate cuts this month and beyond aligns with Zillow’s strengths, as more listings and sales could drive lead generation. Despite a 2023 lawsuit impacting brokerages, Zillow’s indirect commission model insulates it somewhat, though reduced agent revenues could pressure its pricing power.
Down 80% from its 2021 peak, Z’s stock price reflects market challenges but also potential for recovery if affordability improves. Shares are up 58% from their April lows.
With a robust platform and data-driven approach, Zillow is a compelling buy for investors betting on a revitalized housing market, provided macroeconomic conditions stabilize.
D.R. Horton (DHI)
D.R. Horton is America’s largest homebuilder. It stands to benefit directly from policies aimed at boosting housing supply. The company’s focus on affordable, entry-level homes aligns with potential reforms like standardized zoning and tariff exemptions, which could lower construction costs and spur demand.
Zonda’s July 2025 New Home Market Update shows new home sales were flat month-over-month at a 668,318 annualized pace, down 6% from last year, but DHI’s scale and operational efficiency provide resilience. Warren Buffett is also a believer, having taken a 0.5% stake in the builder, currently worth $255 million.
The company’s stock, up 23% in 2025 — and 55% higher from its own April low — reflects investor confidence in its ability to navigate high interest rates. A national housing emergency could accelerate homebuilding, especially if material costs drop, making DHI a strong buy.
However, risks remain, including labor shortages and potential delays in policy implementation. Investors eyeing DHI should weigh its robust fundamentals against macroeconomic uncertainties.
Key Takeaway
If Trump’s administration declares a national housing emergency and implements measures to boost supply and affordability, the housing market could see increased activity, benefiting real estate and homebuilding stocks.
Zillow and D.R. Horton appear better positioned than Opendoor due to their lower risk profiles and scalability. Zillow’s tech-driven model and DHI’s focus on affordable homes align with potential policy shifts, while Opendoor’s iBuying risks and meme stock volatility raise concerns.
Should investors buy OPEN, Z, or DHI now? Zillow and D.R. Horton offer stronger cases for growth, but caution is warranted given uncertainties around policy execution, judicial review of Trump executive actions, and interest rates.
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