PROPMODO EXCLUSIVE

Housing has become an important issue in American politics, but not in the way that most people would think. Trump has promised big changes for the housing industry, but what will those changes mean to the hearts, minds, and pocketbooks of the American voter?

Housing affordability emerged as a key issue in the U.S. presidential campaign, but did it truly sway voters? According to a recent Redfin survey, 38 percent of U.S. residents said that affordable housing influenced their vote. Interestingly, voters in counties with the toughest housing markets leaned more toward Donald Trump, with the former real estate mogul gaining traction in areas where homeownership is most out of reach. While issues like the economy, inflation, and protecting democracy topped the list of voter concerns, the housing debate was a contributing factor to the outcome of the election and still remains a point of contention. What can the real estate industry expect from a second Trump term when it comes to tackling this ongoing crisis?

Trump’s campaign promises on housing were largely focused on slashing mortgage rates, but the reality is that he has little direct control over those. Policies like tax cuts and tariffs on foreign goods could create ripple effects in the housing market, particularly by impacting construction costs and inflation. Increased tariffs, particularly on Chinese goods, could drive up prices for building materials, from electrical equipment to construction supplies, further raising the cost of new housing. While some anticipate that Trump may backtrack on these proposals, the uncertainty surrounding his economic policies could create volatility in both mortgage rates and housing development.

One area where Trump’s policies could make a significant difference is in the regulatory landscape. His administration has repeatedly pushed to reduce the red tape that inflates housing costs, with the goal of cutting the price of new homes in half. Research from the National Association of Home Builders indicates that regulatory expenses make up nearly a quarter of a single-family home's cost and a substantial chunk of multifamily development costs. Easing these burdens could help lower consumer prices and spur development in high-demand areas, but Trump’s other proposals, including the controversial mass deportation of undocumented immigrants, could exacerbate labor shortages in the construction sector, potentially slowing down progress.

While Trump's plans for the Department of Housing and Urban Development remain unclear, it’s likely that his second term will focus on a more business-friendly approach. Expected budget cuts and a rollback of controversial policies aimed at addressing racial equity in housing may lead to significant changes in how federal housing programs operate. Whether these moves will ease or deepen the housing crisis is still up for debate, but one thing is certain: Trump’s influence on the real estate industry will be profound. Love him or hate him, from tariffs to tax cuts and regulatory changes, his policies will shape the future of housing in America.

Explore the full story about the housing industry in a second Trump presidency in today’s featured article. This article is free to read for the next 24 hours. Not a subscriber? Get unlimited access to all our exclusive content for just $10 for your first month. Sign up now!

More Propmodo

Are You Enjoying This Newsletter?

Propmodo Exclusive is written and edited by Franco Faraudo with contributions from readers like you and the Propmodo team.

📧 Forward it to a friend and suggest they check it out.

🔗 Share a link to this post on social media.

🗣 Have ideas for future topics (or just want to say hello)? Share your feedback and tips at [email protected] or connect with us on X through @propmodo.

✅ Not subscribed yet? Sign up for this newsletter here.

📫️ Please add our newsletter email, [email protected], to your contacts to make sure you don’t miss any updates.

Explore Propmodo

• Read exclusive articles about a variety of topics, including Real Estate, Workplace, Buildings, and Development.

• Sign up for upcoming Propmodo Live Webinars or watch past Propmodo Live videos on-demand.

• Dive into Propmodo Technology articles, podcasts, and short videos about the future of commercial real estate.

Enjoy reading about trends and innovation in commercial real estate? Subscribe to Propmodo.com for unrestricted access to reliable, data-driven journalism and exclusive insights available only to subscribers.