Washington

President Donald Trump is set to make the case this week that he can rein in America’s soaring housing costs, but the setting for his message has raised eyebrows. Trump will deliver the speech at the World Economic Forum in Davos, a Swiss alpine resort better known for multimillion-dollar ski chalets than middle-class affordability.

Marking the anniversary of his return to the White House, Trump is travelling to the annual Davos gathering, where global business leaders and billionaires dominate the guest list. It is also a venue that mirrors the company he has increasingly kept during his first year back in office.

During the campaign, Trump cast himself as a populist focused on easing the cost of living, famously staging appearances aimed at working-class voters. In office, however, critics say his schedule suggests a shift toward elite circles, with far more time spent courting wealthy investors than engaging directly with families struggling to pay for housing, food and healthcare.

“At the end of the day, it’s the investors and billionaires at Davos who have his attention, not households trying to stretch their paychecks,” said Alex Jacquez of the liberal think tank Groundwork Collaborative.

Foreign policy, not affordability, has largely dominated Trump’s agenda over the past year. Wars in Gaza and Ukraine, turmoil in Venezuela, and Trump’s controversial push to acquire Greenland have kept him focused overseas — issues that are also expected to overshadow housing policy during his Davos visit.

Trump himself hinted at the friction with Europe, telling reporters that the Davos trip would be “very interesting.”

Behind the scenes, the White House is attempting to steer attention back to domestic economic pressures, especially as midterm elections approach and polling shows vulnerability on cost-of-living issues.

According to the latest Associated Press-NORC survey, nearly 60 percent of Americans believe Trump has made affordability worse. Even among Republicans, enthusiasm has cooled. Just 16 percent say Trump has helped “a lot” with living costs — a sharp drop from April 2024, when nearly half held that view.

Trump’s economic strategy relies heavily on investment pledges from billionaires and foreign governments, betting that large inflows of capital will eventually translate into job creation. Critics argue that his broad tariffs have instead weighed on employment and contributed to higher prices, leaving voters to wait for benefits that may never materialise.

Political analysts warn that the approach is risky. “Voters care far more about what they’re experiencing in their own lives than about the president’s access to wealthy donors,” said Republican pollster Frank Luntz. “Billionaires are not popular — and they haven’t been for a long time.”

Housing, wealth and inequality

Housing affordability remains one of voters’ top concerns. Trump has recently floated ideas such as purchasing mortgage debt to lower interest rates and restricting large financial firms from buying homes. Economists note that these proposals do little to address the deeper issue: years of underbuilding and home prices that have consistently outpaced wage growth.

The wealth gap has widened significantly since Trump’s first term. Federal Reserve data shows that the richest 0.1 percent of Americans increased their wealth by nearly $12 trillion over that period, while the bottom half of households saw gains of under $3 trillion combined.

Trump frequently points to investments by wealthy individuals as proof of future economic growth. To encourage that spending, his administration has prioritised policies favoured by high-net-worth individuals, including deregulation, lighter tax enforcement and incentives tied to artificial intelligence and finance.

“Ultra-wealthy Americans don’t necessarily share the priorities of working families,” said Darrell West of the Brookings Institution. “Their preference for tax cuts and deregulation makes it harder to deliver the kind of public support many voters want.”

Trump has promoted tax breaks on tips and overtime as worker-friendly, but Congressional Budget Office estimates suggest modest benefits for middle-income families compared with substantial gains for top earners. Separate analysis indicates million-dollar earners could save tens of thousands of dollars annually.

A billionaire-heavy orbit

Trump has made no secret of his comfort among the ultra-rich. He frequently appears alongside billionaires at the White House and abroad, often during trips where foreign governments announce large investment pledges.

At a dinner with technology leaders last year, Trump openly celebrated the presence of figures such as Bill Gates, Tim Cook, Sergey Brin and Mark Zuckerberg, calling the gathering a showcase of brilliance.

The White House argues that this access benefits ordinary Americans. Spokesman Kush Desai said Trump’s business-friendly approach is unlocking trillions in investments and reversing what he described as damage done by the previous administration.

Trump has also placed several billionaires in senior roles, including Commerce Secretary Howard Lutnick and special envoy Steve Witkoff. Elon Musk briefly oversaw a government cost-cutting effort before a public split and later reconciliation with the president.

White House press secretary Karoline Leavitt has framed Trump’s personal wealth as an advantage, saying voters trust him as a businessman who understands how the economy works.

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Whether that message resonates with Americans facing high rents and mortgage payments may become clearer after Trump’s Davos appearance — a speech about affordability delivered from one of the world’s most exclusive destinations.