A report from the Trump administration's economic advisors on Monday identified bureaucratic regulations and adverse sources of demand, such as illegal immigration, as the drivers of an ongoing housing crunch in the U.S.

The Economic Report of the President is released yearly and authored by the chairman of the Council of Economic Advisers. The 2026 report identified "adverse sources of demand competing with American families" and "government bureaucrat tax on supply inflating building and renovation costs" as the main drivers of rising costs.

Specifically, the report took aim at institutional investors and illegal immigration as drivers of the issue.

"Institutional homebuying can also alter the fabric of neighborhoods by shifting the composition of residents away from owning and toward renting," the report read. 

"Illegal immigration represents another source of government-enabled demand that unfairly competes with American families over a scarce supply of homes," it added. "The unprecedented surge of illegal immigration during the Biden Administration put an immense strain on America’s rental markets, but linkages between rental and purchase markets mean that illegal immigration also has an impact on owner occupancy."

Ben Whedon is the Chief Political Correspondent at Just the News. Follow him on X.