What Proposed Plans Could Mean for Housing Affordability
Date Posted: December 10, 2024
Posted In: Discussion,
From St. Louis Business Journal: Housing affordability emerged as a signature issue for voters in this month’s election, but whether rental or for-sale housing will become more affordable under President-elect Donald Trump’s administration remains a big question.
Deregulation, including within housing, has been touted by Trump as a key part of his platform. Trump during his campaign also floated the possibility of opening up federally owned lands for housing development.
But campaign promises of tariffs imposed on goods imported from other countries and Trump’s pledge to deport millions of immigrants would create major headwinds for the housing market. Price hikes on goods needed to build a home and more competition for labor would drive up the cost of housing, economists widely agree.
Economists and housing-market watchers say so many of the issues in real estate are local or even hyperlocal in nature. That means while the federal government’s policies and decisions are sure to impact homebuilders — as well as buyers and sellers — many regulations that affect housing production and affordability are still decided at the local and state levels.
Cost of housing, mortgage rates still rising
Trump returns the White House at a time when the national housing landscape is much different than it was during his first term in office.
The housing market has cooled from its white-hot temperatures early in the pandemic, but constrained inventory has continued to inflate prices, even with fewer buyers in the market.