President-Elect Trump’s Promises and Their Impact on the Housing Market
Key Takeaways:
- Buyers are likely to face mortgage rates around 7%, increasing house prices, and higher home sales.
- Sellers might experience a slight rise in buyer demand and home sales, but the market could remain sluggish.
- Renters could benefit from flat rent growth, rising wages, and more affordable rentals, but low-income families and those relying on government assistance may face challenges.
President-Elect Trump will be returning to the White House on January 20th, with plans to implement significant policy changes supported by a Republican-controlled Congress. One of the key issues he will address is the housing affordability crisis, which has been a central concern for many Americans.
In this article, we explore how a second Trump presidency could impact buyers, sellers, and renters in the housing market.
>> Read more: Redfin’s 2025 Housing Market Predictions
Impact on Homebuyers:
President-Elect Trump’s proposed policies could lead to significant changes in the economy and housing market, affecting homebuyers in the following ways:
1. Mortgage Rates:
Buyers can expect mortgage interest rates to remain high and volatile in the near future. Trump’s policies could influence mortgage rates, with potential impacts on inflation and the economy.
Experts speculate on the effects of tariffs, tax cuts, and inflation on mortgage rates, making the housing market unpredictable in the coming years.
2. Home Prices:
Redfin predicts a continued rise in house prices due to limited inventory, despite Trump’s plans to lower housing costs by promoting homebuilding through regulatory reforms and tax cuts.
However, challenges such as local regulations, reduced tax benefits, and limited impact of opening federal land may hinder the alleviation of the affordability crisis.
3. Demand:
Homebuyer demand, which has shown fluctuations, might see an upward trend under a Trump administration. Factors like interest rates, house prices, and economic stability will influence buyer behavior in the market.
Pending home sales are on the rise, indicating a potential improvement in buyer activity, offering opportunities for those looking to enter the market.
4. Housing Supply:
Increased homebuilding efforts through regulatory changes could enhance housing supply, although challenges related to immigration policies may impact the construction workforce and affordability.
Efforts to address the housing deficit and boost affordability will require a multi-faceted approach, with implications for the construction industry and home prices.
Impact on Home Sellers:
Home sellers may witness a modest increase in home sales, but uncertainties remain regarding the market conditions under a Trump administration. The following scenarios could unfold for sellers:
1. Home Sales:
While an increase in home sales is anticipated, the housing market could continue to face challenges. Trump’s policies and the affordability crisis may influence buyer behavior, particularly in different price tiers.
Expectations for improved home sales post-election highlight the potential for market recovery, with economic stability and mortgage rate trends playing a crucial role.
2. Buyer Demand:
Buyer demand may see fluctuations, influenced by interest rates and economic conditions. The impact of proposed policies on housing affordability could shape buyer interest and market dynamics.
While there is optimism for increased demand, concerns regarding affordability under Trump’s presidency could pose challenges for sellers and buyers alike.
3. House Prices:
Continued inventory shortages and demand dynamics are likely to drive house prices up, with a projected increase in prices for the upcoming year. Trump’s strategies to address affordability may have limited effectiveness in curbing price growth.
Challenges related to construction, inflation, and regulatory changes may impact housing supply and affordability, influencing price trends in the market.
Impact on Renters:
Limited information is available on Trump’s plans for renters, but potential scenarios could unfold for rental affordability and government assistance:
1. Rental Affordability:
Renters are likely to experience stable rents, with the influx of new rental units contributing to affordability. Regulatory changes and supply dynamics could impact rental prices and affordability for tenants.
Despite challenges such as tariffs and migration policies, efforts to deregulate the rental market could enhance affordability and supply, benefiting renters in the long run.
2. Government Assistance:
Low-income renters may face challenges, especially with potential cuts to government housing assistance programs. Trump’s proposals could impact affordable housing initiatives, affecting vulnerable populations reliant on assistance.
Concerns regarding funding cuts and program restructuring could have significant implications for low-income renters, highlighting the importance of community support and advocacy for affordable housing.
Final Thoughts:
The upcoming years under a second Trump presidency are poised to bring changes to the housing market, with potential implications for buyers, sellers, and renters. Stay informed, engage with industry experts, and remain proactive in navigating the evolving real estate landscape.