President-Elect Trump’s Promised Policy Shifts and Their Impact on the Housing Market
Key Points:
- Buyers may face mortgage rates around 7%, increasing house prices, and higher home sales.
- Sellers could see a slight rise in buyer demand and home sales, but the year may still be slow.
- Renters might benefit from stagnant rent growth and increasing wages, making rentals more affordable. However, low-income families and those on government assistance may face challenges.
Donald Trump is set to return to the White House with plans to advance his agenda, supported by a Republican-controlled Congress. One of the critical issues he will address is the housing affordability crisis that has been a central concern for many voters.
To navigate the potential impacts of a second Trump presidency on buyers, sellers, and renters, it is essential to understand the expected changes in the housing market.
>> Read more: Redfin’s 2025 Housing Market Predictions
Anticipated Effects on Homebuyers
Homebuyers can expect significant changes in the economy and housing market under the president-elect’s administration. Here’s what buyers may experience in the coming years:
1. Mortgage Rates Stability
Buyers should prepare for consistent and fluctuating mortgage interest rates in the foreseeable future. Following the recent election, mortgage rates surged to approximately 7%, anticipating Trump’s policies. These rates are likely to persist through 2025, subject to the president-elect’s decisions.
Potential Impact on Home Sellers
Home sellers may witness a modest increase in home sales amidst uncertainties. Here’s what sellers might expect in a Trump administration:
Forecasted Changes for Renters
Limited details are available on how the president-elect intends to assist renters. However, certain assumptions can be made regarding potential outcomes:
Concluding Thoughts
The second term of Donald Trump promises significant shifts in the housing market. His proposals to streamline regulations and encourage development on federal lands could influence supply and affordability. Conversely, actions like imposing tariffs and deporting migrants may have adverse effects on various aspects of the housing market.
As we anticipate changes over the next four years, staying informed, engaging with professionals, and staying focused on your housing goals will be crucial for all involved parties.