Donald Trump has been elected the 47th President of the United States, defeating Vice President Kamala Harris in the 2024 election.
This week, the BAM audience weighed in on social media about who they were voting for. In the comments, many shared their perspectives on this election and the impact Trump’s policies might have on the economy. Among Trump’s broad economic promises—lowering the cost of living, reforming trade, and stimulating growth—housing stands out as a critical area, especially with affordable housing being a top priority for many Americans.
Here’s a look at Trump’s housing policy proposals and what they could mean for real estate.
Trump’s Housing Policy Goals
Trump has signaled a commitment to making housing more affordable by focusing on two main areas: increasing housing supply and decreasing regulatory barriers. According to Trump, high construction costs and restrictive zoning regulations are significant factors hindering affordable housing.
Increasing Housing Supply Through Federal Lands
Trump has pledged to open more federal land for housing development to address the chronic housing shortage. This move—which is also something Harris is in favor of— aims to spur large-scale projects that would increase the overall housing supply. Critics argue that these projects may not reach high-demand urban areas due to local regulatory obstacles.
Reduce Regulations
Another pillar of Trump’s plan is reducing regulatory burdens on housing construction, particularly zoning restrictions. He aims to eliminate certain zoning laws, environmental restrictions, and safety codes that developers must currently follow. By cutting back on these restrictions, Trump aims to make it easier and cheaper for developers to build. However, this strategy may face resistance from advocacy groups who argue that regulations are essential for ensuring safe, sustainable construction.
Immigration Policies and Housing Costs
Trump links immigration with housing costs, arguing that undocumented immigrants place additional demand on the housing market, which drives up prices. One of his proposed policies includes banning mortgage access for undocumented immigrants, with the claim that limiting such financial services would make more housing available for citizens and legal residents.
Supporting First-Time Homebuyers
Trump’s campaign mentions plans to provide targeted support to first-time homebuyers, though specifics are limited. This support could take the form of tax credits for down payments or relaxed lending terms for first-time buyers, similar to past federal programs that assist with purchasing. By focusing on new buyers, the policy aims to boost homeownership rates, which have struggled due to high property prices and interest rates.
Mortgage Rates and Financing Affordability
Trump has vowed to lower mortgage rates, an appealing proposition for many homebuyers, though his ability to do so is limited by broader economic factors.
While the president does not control interest rates directly, Trump has suggested that his economic policies would eventually drive mortgage rates down. During a rally in Arizona, he claimed he would bring rates down drastically, a goal that many economists say is difficult to achieve without significant shifts in monetary policy.
As of Wednesday morning, the 10-year Treasury yield increased, which could mean an increase in mortgage rates today as well.
Real Estate Professionals’ Role in Housing Affordability
As Trump’s presidency unfolds, we’ll be watching how his housing policies impact the market, especially regarding affordability and supply.
Beyond observing national changes, though, agents can actively engage at the local level. A recent Redfin survey shows that early voters ranked housing affordability as one of the top 5 issues impacting their decision in local races, with 40% saying it influenced their vote for local elected officials.
On Tuesday’s Hot Sheet, BAM co-founder Byron Lazine reminded agents of the role they play: “Housing affordability is such an important issue for voters. And as a real estate professional, it’s an issue you’re privileged to be working on…So once we get past today, I encourage everyone to get involved locally around the housing affordability issue.”
By leading conversations, sharing relevant data, and educating their communities, agents can play a powerful role in addressing this pressing issue on the ground.
