What Trump’s second term could mean for housing

Donald Trump was elected the 47th president of the United States earlier this month, raising questions about what his administration will mean for housing.

While his campaign outlined few specifics, experts have identified some likely priorities:

• Lowering mortgage rates and controlling inflation

• Supporting first-time buyers with tax incentives

• Cutting regulations to make home construction easier and more cost-effective

• Opening federal land to new home construction

• Reducing immigration to ease housing demand pressures

Most of these policies favor buyers, but renters may see indirect benefits. By increasing the supply of affordable homes for sale, demand could shift away from renting to buying, leading to lower rental prices and greater rental unit options.

But while Trump’s proposed tax cuts on tipping income, overtime pay, Social Security, and more could put more disposable income in the hands of many Americans, his planned tariffs act as a tax on consumers and are likely to drive inflation higher.

The market has already reacted to Trump’s election victory – mortgage rates spiked to 7.13% just hours after the results and are expected to remain elevated for some time. This will likely dampen new demand from buyers after the recent rate cut, keeping the rental market largely unaffected.

Given the lack of clarity over some of Trump’s housing policies and the length of time it takes for some to reflect in the market, the full impact of his presidency won’t begin to materialize until after he takes office – and perhaps not until well into his term.

More housing policy headlines

Illinois expands landlord retaliation laws – who's next? – PayProp blog

California voters say no to expanding rent control – Multifamily Dive

After decades of inaction, states are finally stepping up on housing – Vox