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The U.S. is facing a severe housing shortage. Will Trump's proposals help?

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The U.S. is facing a severe housing shortage. Will Trump's proposals help?

Construction of this $1 billion luxury real estate development in Los Angeles stalled in 2019 after a China-based developer ran out of funding, leaving the three-tower project unfinished amid a housing crisis in the city.

Mario Tama/Getty Images


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Mario Tama/Getty Images

Heading into 2025, housing remains one of the most important issues on the minds of millions of Americans. For many, the dream of owning, or even renting, a place of their own is in peril. In some cities, people are paying $1 million for “starter” homes, while about half of renters are spending more than 30% of their income on housing.

Ben Keys, an economist with the University of Pennsylvania Wharton School, characterizes the current market as “deeply unaffordable.” Keys traces some of the current problems back to the financial crisis of 2008.

“We saw a collapse in construction, and so we just stopped building houses, we stopped building apartments for a few years there,” he says. “Now we’re seeing estimates of as much as four million houses that we’re short.”

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Keys notes that new construction is occurring “at a snail’s pace,” due, in part, to the high cost of labor and materials and the difficulty of financing large projects. He says that zoning laws and land use restrictions can also contribute to a housing shortage: “[These] policies create a lot of hoops to jump through and make it challenging for developers who would like to build at the scale where they would like to build.”

President-elect Donald Trump has suggested opening up federal land for development, but Keys questions the practicality of the plan.

“When we’re thinking about this federal land out west, I’m pretty skeptical that we’re going to see, you know, cities spring up out of whole cloth,” he says. “Federal land seems promising, but as a solution to our affordability crisis, I just don’t see it.”

Interview highlights

On what Trump’s proposed tariffs on imports, including construction materials, would do to the housing market

Basically, if we’re going to raise the costs of construction materials, that’s going to raise the cost of building a home. Now, a lot of the materials that are used for construction are domestic. So we do have a lot of those in the U.S., but we also import a number of construction materials like lumber for things that would be covered under NAFTA from Canada. But the simple math is that if we are going to impose additional tariffs on building materials, it’s going to be more expensive to build rather than less expensive to build.

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On what Trump’s proposed mass deportations might mean for housing 

I don’t think that there is a strong connection between this idea of removing immigrants from our country and making housing more affordable. And there’s a couple of reasons for this. One is that immigrants and undocumented immigrants make up a large fraction of the construction workforce. … And so it is going to make labor costs more expensive to build, and that’s going to drive up the cost of housing.

The trade off there, from a housing market standpoint — we’re talking about this in a very narrow sense — is that there will be fewer people in this sort of numbers game of supply and demand. But if we think about the types of housing that immigrants and undocumented immigrants tend to locate in, they tend to be renters and they tend to locate in low-income neighborhoods. Now, of course, that’s not uniformly true, but that’s where they are concentrated. And so if we’re thinking about the high cost of homeownership, removing undocumented immigrants from the pool of potential homebuyers is simply not going to move the needle on affordability.

On how climate change is contributing to the rise in costs for homeowners 

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I think there’s a very direct line to be drawn between rising climate risks and the costs of homeownership in the form of property insurance. … In just the last three years, 2020 to 2023, my research with Phil Mulder has shown that property insurance has gone up by over 33% on average in the U.S., and over 50% in the areas of the country most exposed to climate risk. … The places that might come to mind are places like Florida in the Gulf Coast, wildfire zones in California, but also some parts of Oklahoma where they’re hit with a lot of hail storms and tornadoes. And there we’ve seen big run-ups in property insurance costs. And so what this has done is it’s made the sort of predictability of home ownership a little bit less predictable. …

I worry a lot for homeowners who had bought on a fixed income or were sort of constrained in how much they could afford and now they’re seeing their insurance costs rise sharply. And so this is a reflection of climate change … which is inducing more frequent and more severe disasters. But it’s also a function of mobility patterns. And where we’ve moved in this country over the last really 50 years, we’ve been moving into the danger zones. We’ve been moving into harm’s way.

On how the housing crisis impacts homelessness 

The number of extremely affordable rental units has plummeted in recent years, and this ties back into a housing shortage. Where does that housing shortage squeeze the most? It’s going to squeeze the most at the very bottom of the property ladder. Landlords who previously offered very affordable units have seen a great deal of demand for those units. They’re able to raise the rents. And so we’ve seen a lot of people fall off the bottom of the rental market, and that’s led to a ton of pressure, especially in expensive markets, and I think in many ways the diagnosis is quite clear that we have this supply-and-demand imbalance.

And so the cure is that we need more housing, that we need to prioritize housing. And this has been taken up with what’s been known as a “Housing First” strategy for dealing with homelessness. … With the Biden administration, there’s been an emphasis on this strategy, a recognition that many of the additional challenges that these households face can only be addressed once they’re in a stable housing environment. And there have been a number of pilot programs around the country that have borne this out.

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On advice he would give to people who are debating whether or not it’s a good time to buy a home

First, do your homework and figure out the cost of housing in the market that you’re looking in, both for owning and for renting. I think it makes a lot of sense to continue to rent in markets where prices are high and interest rates are high. In many cases … you’d be better off putting your savings into something that’s delivering a safe, predictable return that might be more safe and predictable than returns on housing. So from an investment standpoint, investing elsewhere is very sensible.

And then, I think, as you’re approaching the decision to buy a house, think long term, because there are large fixed costs to buying a house in terms of transaction taxes and in terms of broker fees, title insurance and other costs that need to be rolled into that cost. When you’re doing an apples-to-apples comparison, the right comparison isn’t just comparing the mortgage payment to the monthly rent. And then on top of that, there’s a challenge with rising insurance costs and property taxes. And so you need to take a view on “Can I afford the property insurance, flood insurance, wind insurance, other (or supplemental) insurance policies in a few years when those may be more expensive than they are today?” So I think it takes a more careful budgeting approach than we’ve seen in the past. And, in many of those cases, my sense is that that’s going to come out on the rental side of the ledger rather than owning, given our current affordability crisis.

Monique Nazareth and Anna Bauman produced and edited this interview for broadcast. Bridget Bentz, Molly Seavy-Nesper and Catherine Laidlaw adapted it for the web.

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George Clooney gets French citizenship — and another dust-up with Trump

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George Clooney gets French citizenship — and another dust-up with Trump

The French government confirmed this week that it has granted citizenship to George and Amal Clooney — pictured on a London red carpet in October — and their 7-year-old twins.

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One of Hollywood’s most recognizable stars is now officially a French citizen.

A French government bulletin published last weekend confirms that the country has granted citizenship to George Clooney, along with his wife, human rights lawyer Amal Clooney, and their 7-year-old twins.

The Clooneys — who hail from Lexington, Ky. and Beirut, Lebanon, respectively — bought an 18th-century estate in Provence, France in 2021. In an Esquire interview this October, the Oscar-winning actor and filmmaker described the French “farm” as their primary residence, a decision he said was made with their kids in mind.

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“I was worried about raising our kids in LA, in the culture of Hollywood,” Clooney said. “I felt like they were never going to get a fair shake at life. France — they kind of don’t give a s*** about fame. I don’t want them to be walking around worried about paparazzi. I don’t want them being compared to somebody else’s famous kids.”

In another interview on his recent Jay Kelly press tour, Clooney mentioned that his wife and kids speak perfect French, joking that they use it to insult him to his face while he still struggles to learn the language.

This week, after a French official raised questions of fairness, France’s Foreign Ministry explained that the Clooneys were eligible under a law that permits citizenship for foreign nationals who contribute to the country’s international influence and cultural outreach, The Associated Press reports.

The French government specifically cited the actor’s clout as a global movie star and the lawyer’s work with academic institutions and international organizations in France.

“They maintain strong personal, professional and family ties with our country,” the ministry added, per the AP. “Like many French citizens, we are delighted to welcome Georges and Amal Clooney into the national community.”

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They aren’t the only ones celebrating. President Trump, who has a history of trading barbs with Clooney, welcomed the news by taking another dig at the actor.

In a New Year’s Eve Truth Social post, Trump called the couple “two of the worst political prognosticators of all time” and slammed Clooney for throwing his support behind then-Vice President Kamala Harris during the 2024 election.

“Clooney got more publicity for politics than he did for his very few, and totally mediocre, movies,” wrote Trump, who himself has made cameos in several films over the years. “He wasn’t a movie star at all, he was just an average guy who complained, constantly, about common sense in politics. MAKE AMERICA GREAT AGAIN!”

Clooney responded the next day via a statement shared with outlets including Deadline and Variety.

“I totally agree with the current president,” Clooney said, before referencing the midterm elections later this year. “We have to make America great again. We’ll start in November.”

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Clooney and Trump — once friendly — have long criticized each other

Clooney, a longtime activist and Democratic Party donor, has remained active in U.S. politics despite his overseas move.

In July 2024, he rocked the political establishment by publishing a New York Times op-ed urging then-President Joe Biden — for whom he had prominently fundraised just weeks prior — to drop his reelection bid to make way for another Democrat with better chances of taking the White House. A growing chorus of calls led to Biden’s withdrawal from the race by the end of that month.

In a December interview with NPR’s Fresh Air, Clooney said his decision to speak out on that and other issues generally comes down to “when I feel like no one else is gonna do it.”

“You’ll lose all of your clout if you fight every fight,” he added. “You have to pick the ones that you know well, that you’re well informed on, and that you have some say and you hope that that has at least some effect.”

Clooney has been a vocal critic of Trump throughout both of his terms, most recently on the topic of press freedoms during the actor’s Broadway portrayal of the late journalist Edward R. Murrow last spring.

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And Trump has been similarly outspoken in his dislike of Clooney, including in an insult-laden Truth Social post — calling him a “fake movie actor” — after the publication of his New York Times op-ed.

In December, just days before this latest dust-up, Clooney shared in a Variety interview that he and Trump had been on good terms during the president’s reality television days. He said Trump used to call him often and once tried to help him get into a hospital to see a back surgeon.

“He’s a big goofball. Well, he was,” Clooney added. “That all changed.”

In the same Variety interview, Clooney — the son of longtime television anchor Nick Clooney — slammed CBS and ABC for abandoning their journalistic duty by paying to settle lawsuits with the Trump administration. He expressed concern about the current media landscape, particularly the direction of CBS News under its controversial new editor in chief, Bari Weiss.

Weiss responded by inviting Clooney to visit the CBS Broadcast Center to learn more about their work, in a written statement published in the New York Post on Tuesday. It began with “Bonjour, Mr. Clooney,” in a nod to the actor’s new milestone.

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Clooney told NPR last month that he will continue to stand up for what he believes in, even if it means people who disagree with him decide not to see his movies.

“I don’t give up my right to freedom of speech because I have a Screen Actors Guild card,” he added. “The minute that I’m asked to just straight-up lie, then I’ve lost.”

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Possible measles exposure detected in Ky. after unvaccinated traveler visits Ark Encounter

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Possible measles exposure detected in Ky. after unvaccinated traveler visits Ark Encounter

LOUISVILLE, Ky. (WDRB) — Kentucky health officials are warning the public of possible measles exposures in northern Kentucky earlier this week. 

A post on the Kentucky Department for Public Health’s Facebook page said it “identified potential measles exposures in Grant County.” According to the post, the exposure was traced to “an unvaccinated, out-of-state traveler” who stayed at the Holiday Inn & Suites in Dry Ridge from Dec. 28-30.” That person also visited the Ark Encounter on Dec. 29.

Measles, a highly contagious respiratory virus, can cause serious health problems, especially in young children, according to the CDC’s website. The virus spreads through the air after someone infected coughs or sneezes. It can then linger for up to two hours after the infected person leaves. 

The virus can also be spread if someone touches surfaces that an infected person has touched. Symptoms include a cough, runny nose and red eyes, followed by white spots that appear on the face and down the body. Two doses of the MMR (measles, mumps and rubella) vaccine is the best protection against measles, according to health officials.

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Contact your healthcare provider if you think you or someone in your family may have been exposed.

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Copyright 2026 WDRB Media. All Rights Reserved.

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Sunday Puzzle: New newsmakers of 2025

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Sunday Puzzle: New newsmakers of 2025

On-air challenge

Every year around this time I present a “new names in the news” quiz. I’m going to give you some names that you’d probably never heard before 2025 but that were prominent in the news during the past 12 months. You tell me who or what they are.

1. Zohran Mamdani

2. Karoline Leavitt

3. Mark Carney

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4. Robert Francis Prevost (hint: Chicago)

5. Jeffrey Goldberg (hint: The Atlantic)

6. Sanae Takaichi

7. Nameless raccoon, Hanover County, Virginia

Last week’s challenge

Last week’s challenge came from Joseph Young, of St. Cloud, Minn. Think of a two-syllable word in four letters. Add two letters in front and one letter behind to make a one-syllable word in seven letters. What words are these?

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Challenge answer

Ague –> Plagued / Plagues / Leagues

Winner

Calvin Siemer of Henderson, Nev.

This week’s challenge

This week’s challenge is a numerical one from Ed Pegg Jr., who runs the website mathpuzzle.com. Take the nine digits — 1, 2, 3, 4, 5, 6, 7, 8, 9. You can group some of them and add arithmetic operations to get 2011 like this: 1 + 23 ÷ 4 x 5 x 67 – 8 + 9. If you do these operations in order from left to right, you get 2011. Well, 2011 was 15 years ago.  Can you group some of the digits and add arithmetic symbols in a different way to make 2026? The digits from 1 to 9 need to stay in that order. I know of two different solutions, but you need to find only one of them.

If you know the answer to the challenge, submit it below by Thursday, January 8 at 3 p.m. ET. Listeners whose answers are selected win a chance to play the on-air puzzle.

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