The American housing market has been a difficult one for many over the last several years, with high interest rates and soaring prices preventing many Americans from buying a new home. As such, one of the many questions generated by President-elect Donald Trump’s historic win in the 2024 presidential election is how, exactly, will Trump’s re-election impact the housing market in the U.S.?
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Housing Market Predictions
In a recent Newsweek article, Alex Beene, a financial literacy instructor at the University of Tennessee at Martin, said, “Many in the real estate business are elated with a Trump victory, and if the administration can live up to its campaign promises, rightfully so. For months, [Trump] has been advocating for lower interest rates, which have become one of the most significant barriers to home ownership in the post-pandemic years.”
That said, as Newsweek warned, those lowered interest rates can actually bring about higher prices, and thus will require a “balancing act” from the Trump administration.
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It Depends Which Campaign Promises He Follows Through On
Additionally, part of that balancing act requires Trump to be selective with the campaign promises he decides to implement. For example, as Newsweek noted, approximately a third of residential construction employs foreign-born construction workers — if Trump were to make good on his plans to curtail illegal immigration via mass deportations, the home construction labor force could be significantly decreased.
Further, Trump’s promise to implement tariffs upon imported goods could greatly increase inflation, which would further send home prices skyrocketing.
However, Trump has also promised to reduce what he has called unnecessary regulations upon housing development, which could take as much as $90,000 off the price of a new home.
Because of this delicate balancing act, Realtor.com’s chief economist Danielle Hale has said Trump’s impact on the housing market is currently a “toss-up.”
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This article originally appeared on GOBankingRates.com: How President-Elect Trump’s Win Could Impact Housing Prices
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