The housing market under Donald Trump: what could it mean for buyers, sellers and renters?

President-elect Trump is promising a major policy shift once he returns to the White House. What can they mean for the housing market?

Keynote speeches:

• Buyers will likely see mortgage rates around 7%, rising home prices and more home sales.
• Sellers may see a slight uptick in buyer demand and home sales, but it could be a slower year.
• Tenants can take a break. Higher house prices will encourage more people to rent, while flat rent growth and rising wages will make rentals more affordable. Low-income families and those on public assistance are likely to have a hard time.

Donald Trump will return to the White House on January 20 with his advance .

This is one of the most urgent problems he faces which is a on the eve of the election and helped especially in inaccessible areas. There were many people with rising costs and limited supply over the past four years.

So, to help you through the next four years and beyond, let's take a look at how a second Trump presidency could affect buyers, sellers and renters.

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What a Trump presidency could mean for homebuyers

The elected president promises significant changes in the economy and the housing market. Here's what homebuyers can expect to see over the next four years:

1. Mortgage rates are likely to stay

Buyers should expect mortgage rates to remain for the near future. After the election, mortgage rates rose to about 7% Trump's policies – where they will be until 2025. However, it all depends on what Trump decides to do.

There is Trump for , and all of them mortgage interest. Mortgage rates and inflation are particularly linked.

Experts fear that there may be tariffs inflation and global economic growth. Inflation is stable from him but can If Trump follows through on his agenda. There will also be tax deductions national debt unless offset by spending cuts. Investors have already prepared for expected changes in today's mortgage rates, but if inflation rises more than expected, mortgage rates will likely follow suit.

Trump also promised to lower interest rates, which affect mortgage rates. But since mortgage interest by the bond market through investors, it largely .

Investors believe that if Trump implements his policies and the economy remains strong, the Fed will only cut interest rates. In 2025. However, if the economy weakens or plans for tariffs and tax cuts are rolled back, the Fed could taper more and mortgage rates could fall. There will be a housing market in general .

>> Learn more about mortgage rates

2. Home prices may rise

Redfin expects home prices to continue rising through 2025as there may not be enough inventory to meet demand. Prices have been near record highs for months, and that's what happened affordability and . However, the prices places with climate change.

Trump has promised to reduce housing costs by building more homes. He wants to encourage home building by easing regulations and extending them and opening up federal lands for development.

Deregulation is likely to help improve supply, however these proposals will not fully address the current affordability crisis for three reasons:

• Local regulations—not federal— most of the construction process;
• TCJA to own a home, it hurts the economy and benefits the top earners;
• Federal land will be opened for development in lowering prices, in part because most federal lands are located in the West.

3. Demand may return

Homebuyer demand was low for most of the year, but has picked up markedly Election after the Fed's two percent cut. And it defies expectations after the election and even with high mortgage rates, high home prices and a bleaker outlook.

There are also pending US home sales and Redfin's Homebuyer Demand Index recently hit it From 2023. Demand seems likely this year, now enter the market and stay ahead of the competition.

4. Housing provision may improve a little

Trump's supply may improve building regulations, which currently adds approx to the cost of the new house. This was reported by the National Association of Home Builders (NAHB). Development may be easier under a Republican Congress. We need to see an actual regulatory change to prove this true.

There is new construction recently, but fewer regulations may bring some relief to the industry. Estimates now show that there is a shortage among them for millions of homes are being sold, driving up prices.

Apart from deregulation of the industry, believes especially his calls to limit border crossings and perhaps even begin can construction labor makes it more expensive to build houses. Most construction workers in the United States are immigrants and they are undocumented. His plan to build a home on federal land could have helped, but was met .

What a Trump presidency could mean for home sellers

Home sellers may see a slight uptick in home sales, although a lot is up in the air. Here's what sellers could be under the Trump administration:

1. Home sales may rise but remain at historic lows

Home sellers may see more home sales, however, we do not foresee any major breakthrough as the market struggles with Trump's policies and the affordability crisis. The exception may be among lower-priced homes, as older buyers who are priced out of the higher price range buy homes they can afford.

It was the year 2024 The year for home sales leaves a feeling in the industry”.” Now because of Trump's re-election home sales will improve slightly. Sale in October and in November. If the economy remains strong and mortgage rates fall more than expected, sales will improve further in 2025.

Trump plans to improve affordability and increase housing stock by reducing regulations and building on federal land. But his promises for tariffs and deportations it can hurt the economy and cancel out gains made elsewhere.

2. Sellers could see more demand

Buyer may request and improve. Home buyer activity right after the election. Moreover, the Fed lowered interest rates It will close in 2024, although only one decline is expected this year. Since mortgage rates aren't expected to drop significantly anytime soon, many buyers don't feel there's much reason to wait. Time will tell if the recent increase in demand is indicative of a longer trend.

However, some During Trump's presidency, the opportunity to buy an apartment may decrease. Depending on how the proposed tariffs, deportations and tax cuts are implemented, they could negatively impact the housing market and hurt demand.

3. Home prices will likely continue to rise

Severe inventory shortages and reduced buyer demand give permission house prices will continue their steady rise in the new year. Redfin expects prices to rise 4% in 2025.

Trump's proposed solutions to build more homes and lower prices are unlikely to improve the situation. In fact, if it deports migrants and imposes tariffs, construction could slow and inflation rise. The prospect of less regulation brought optimism to homebuilders.

Even if mortgage rates fall, more buyers will enter the market, which will drive up prices. It will take several years for the increase in home construction to make housing significantly more affordable.

What a Trump presidency could mean for renters

Donald Trump offered few details on how he would help renters. However, there are a few assumptions we can make:

1. Rent affordability may improve

Renters can expect rents to remain stable through 2025as new units . The apartment is for rent plus increased wages is equal to more affordable rentals.

Although there is a multi-family construction affordability may improve further under the new administration. Trump's plan to deregulate the industry and eliminate permit requirements strengthen the supply. Supply and demand are the main factors behind rental prices.

This can help reduce the share of cost-burdened tenants as well. today, rent burden on all tenants, and most are low-income tenants one bedroom apartment.

However, aside from easing regulations, Trump's promises to impose tariffs and deport migrants has a negative impact on the rental market. Tariffs construction costs and slower new construction (supply) will be passed on to the consumer in the form of higher rents. Migrant deportations will hurt the construction industry.

2. Government aid may be cut off

Low-income renters are likely to be hit the hardestespecially those relying on public housing assistance. There is Trump to pay housing assistance for the most vulnerable population.

for low-income housing He said the new management will try again to affordable housing programs. Especially the Department of Housing and Urban Development (HUD). to reduce its budget. That would be it to cities and states that are almost unable to maintain current funding. are excited for housing programs to individual states and federal spending cuts. Others worry about how programs will be affected.

However, several local affordable housing has recently passed, indicating that there is support for maintaining programs at the community level.

These are On Supplemental Security Income (SSI), paying the minimum wage, and/or generally living in poverty and apply for government assistance programs – many of which are provided by HUD. Without funding, these programs can no longer serve number of people. Apartment Selection Coupons (), Community Development Block Grants and Public Housing are most affected.

Final thoughts

Donald Trump's second term promises many changes in the housing market. His proposals to ease regulations and open federal lands to new development could help improve supply and accessibility. On the other hand, the imposition of tariffs and the deportation of migrants can have consequences for inflation, affordability and housing supply.

A lot can change over the next four years. If you're in the market for a home or rental, or looking to sell, it's especially important to stay informed, talk to your agent or landlord, and stay focused on finding your home.