Key Policy Proposals: Deregulation and Development

Throughout his campaign, Trump voiced support for cutting what he deems “unnecessary” regulations in housing development, which can add significant costs—up to $90,000 per new home in some cases. There are also discussions within his administration about opening certain federal lands for residential development, a move that could provide builders with more opportunities and, ultimately, help ease housing shortages.

Hale also mentions that lower mortgage rates could incentivize current homeowners to sell, increasing inventory and creating more options for new buyers. However, policies like tariffs and reductions in immigration could raise inflation, potentially impacting housing prices and construction costs. Limiting immigration, as proposed, could also affect labor availability in the construction industry, where up to a third of workers are foreign-born according to the Census Bureau.

The Uncertain Path of Trump’s Policy Agenda

While Trump’s stance on certain issues, like deregulation, is clear, other aspects of his housing policy remain ambiguous. Columbia University’s Robert Shapiro highlights this uncertainty, pointing out that while Trump has a history in real estate and understands market dynamics, it’s unclear which policies he will prioritize once in office.

A Look Back: Harris’ Policy Ideas

Before conceding, former candidate Kamala Harris had proposed measures to support first-time homebuyers, such as $25,000 in down payment assistance and tax incentives for developers who sell homes to these buyers. According to industry insiders, some of Harris’ ideas—such as incentivizing developers and local governments to increase housing supply—might align with conservative economic principles, despite differences on subsidy approaches.

Real Estate Market Optimism for Economic Growth

With the expectation of less regulation and favorable lending conditions, many in the real estate sector believe Trump’s administration could stimulate housing development, benefiting developers and buyers alike. Ben Allen, co-founder of GreenLite, a construction permitting platform, stated that lower borrowing costs could fuel new real estate projects, resulting in increased inventory and options for buyers. Meanwhile, Jeff Holzmann, COO at Texas-based RREAF Holdings, shared that many in the industry feel that Trump’s experience as a developer gives him an understanding of market needs, from demand dynamics to quality standards.

Wall Street also appears optimistic, with many investors betting on positive economic outcomes under the new administration. Key areas to watch include tariffs and the appointment of critical officials, as both could heavily influence the broader economic landscape.

In Summary

Trump’s housing policies, if effectively implemented, may lower rates, reduce regulatory burdens, and possibly expand housing supply. However, these efforts must strike a balance to ensure that reduced rates and deregulation don’t inadvertently drive up housing costs. As policies unfold, prospective homeowners and industry experts will closely watch how these changes impact affordability and access in the years ahead.

Credit: Newsweek