Real Estate & Housing with New Administration in 2025

As the new administration takes office, there is considerable focus on economic policies, particularly in the realm of housing. President Trump has outlined several economic goals to lower the cost of living and improve home affordability. Here's a snapshot of housing policy proposals and their possible implications for real estate.

Approach to Housing Affordability

Trump’s housing affordability policy centers on two main objectives: increasing housing supply and minimizing regulatory barriers. High construction costs and restrictive zoning are cited as key obstacles to affordable housing.

Federal Lands and Housing Supply

Trump has proposed using more federal lands for housing development to mitigate the national housing shortage.  This initiative, supported by figures like Vice-President Harris, is intended to facilitate large-scale housing projects. However, it faces challenges where local regulations may impede development.

Regulatory Reductions

Trump also aims to reduce the regulatory burdens on housing construction that increase production cost. While this could ease development, it may face resistance from groups advocating for sustainable building practices

Immigration and Housing Costs

Trump suggests that undocumented immigrants elevate housing demand and prices. He proposes restricting mortgage access for undocumented immigrants as a measure to reserve more housing for citizens and legal residents.

Support for First-Time Homebuyers

To boost homeownership rates, first-time homebuyers may be able to receive potential tax credits for down payments or more lenient lending terms. Such initiatives aim to help new buyers enter the market amidst rising property prices and adjusting interest rates.

Mortgage Rates and Affordability

While the president cannot directly control interest rates, Trump claims his economic policies will lower mortgage rates through broader economic strategies. Economic experts suggest that significantly lower rates would require substantial changes in monetary policy.

This overview of policy proposals present a proactive approach to addressing key issues affecting affordability and home ownership for Americans across the country. Proposing to increase housing supply and reduce regulatory constraints, could  make homeownership more attainable for more people. While optimistic in their goals, the success of these initiatives will largely hinge on navigating the complex interplay of federal and local regulations. If implemented effectively, these measures could significantly enhance market accessibility and provide a boost to prospective homeowners in achieving the American Dream of Home Ownership.

Top Realtor, Marquesa Hobbs,  is ready to help you whether you are buying or selling Real Estate!