Surrounded by billionaires in Davos, Trump plans to lay out how he’ll make housing more affordable

President Donald Trump is heading to the World Economic Forum in Davos, Switzerland, where he plans to address housing affordability issues against the backdrop of a luxurious mountain resort town where vacation homes fetch upwards of $4.4 million.

The timing is significant, coming on the anniversary of his inauguration for his second term. Trump will be surrounded by many of the same billionaires and global elites he has increasingly associated with during his first year back in office, raising questions about the disconnect between his populist campaign promises and his actual governing priorities.

During his campaign, Trump positioned himself as a champion of working-class Americans, even serving food at a McDonald’s drive-thru to emphasize his connection to everyday voters. However, his presidential calendar suggests a shift in focus, with significantly more time devoted to meetings with wealthy business leaders than direct engagement with the working-class base that helped elect him.

“At the end of the day, it’s the investors and billionaires at Davos who have his attention, not the families struggling to afford their bills,” said Alex Jacquez of Groundwork Collaborative, a liberal economic policy organization.

Trump’s first year back in office has been dominated by foreign policy concerns in Gaza, Ukraine, and Venezuela. His recent interest in acquiring Greenland has also caused friction with European allies, a tension likely to overshadow his housing proposals during the Davos forum. Acknowledging the diplomatic awkwardness, Trump told reporters, “Let’s put it this way: It’s going to be a very interesting Davos.”

The White House has been attempting to redirect Trump’s attention to economic affordability issues as polling data raises concerns ahead of midterm elections where congressional control hangs in the balance. According to recent AP-NORC polling, approximately 60% of Americans believe Trump’s policies have negatively impacted the cost of living. Even among Republicans, support for his economic management has eroded significantly, with only 16% saying he has helped “a lot” with affordability—down from 49% in April 2024.

The president’s economic strategy relies heavily on investment commitments from billionaires and foreign nations to stimulate job growth. However, this approach faces headwinds from his own broad tariff policies, which economists point to as factors contributing to inflation and labor market constraints. The strategy creates a precarious political calculation where voters must trust that Trump’s business relationships will eventually translate to economic benefits for them.

Republican pollster Frank Luntz warns of the political risks inherent in this approach. “If you’re asking me, ‘Are billionaires popular?’ The answer is no—and they haven’t been for some time,” said Luntz, who identified affordability as a critical voter concern.

The economic disparities have become more pronounced since Trump’s first term began in 2017. Federal Reserve data shows the wealthiest 0.1% of Americans have seen their wealth increase by nearly $12 trillion to $23.46 trillion, while the bottom 50% of households gained just $2.94 trillion during the same period—roughly one-fourth of what the top tier accumulated.

Housing costs remain a primary voter concern. Trump has proposed initiatives including a $200 billion mortgage debt purchase program and restrictions on large financial companies buying homes. However, experts note these measures fail to address fundamental housing market issues: the shortage of new construction and home prices outpacing wage growth.

The president’s legislative priorities have also raised questions about who benefits most from his economic policies. While Trump promotes tax breaks on tips and overtime pay as worker-friendly, a Congressional Budget Office analysis indicates middle-class families might save just $800 to $1,200 annually, while those earning over $1 million could see average savings of $66,510 this year.

White House spokesman Kush Desai defended the president’s approach, stating, “President Trump’s pro-growth policies and friendly relationships with industry titans are securing trillions in investments that are creating jobs and opportunities for everyday Americans.”

As Trump prepares for his Davos address, the question remains whether his billionaire-centric economic approach will translate into tangible benefits for the working-class Americans who helped return him to office, or further widen the economic divide his policies claim to address.