What Does a Trump Presidency Mean for the Housing Market?
Housing affordability was a major concern for voters this year. Here’s what Trump’s recent win could look like when it comes to housing issues
Nov. 7, 2024
Volodymyr Kyrylyuk / stock.adobe.com
Housing affordability was a major concern for voters going into the 2024 presidential election.
Donald Trump has won a second term as the 47th U.S. president after securing enough electoral votes from key swing states. His win comes amid a housing crisis, with record-high home prices and half of U.S. renters considered cost-burdened, according to real estate marketing platform Realtor.com.
These ongoing challenges are a key concern for many Americans, and Trump's return to office raises questions about his potential impact on the housing market. While it's unclear what specific policies the incoming administration plans to implement, Trump has blamed rising costs on high mortgage rates and illegal immigration. Additionally, he has called for reducing the number of building regulations and permit requirements.
In reality, the evidence that immigration is a major factor in housing costs is mixed. While there is reason to believe that higher immigration levels can drive up local rents in a city, the recent post-pandemic surge in home prices began before illegal immigration levels jumped.
Realtor.com senior economist Ralph McLaughlin says that the kind of massive immigration crackdown that Trump proposes would have “large and negative consequences on the U.S. housing market in both the short and long run.”Read more
