Here’s How the New Trump Presidency Could Reshape the US Housing Market.

With Donald Trump returning to the White House, it’s hard not to wonder how his presidency might shake up the housing market. If you’re buying, selling, building, or just keeping an eye on the market, these potential changes could affect all of us in one way or another.

From his previous term to what he’s hinted at during the campaign trail, there’s a lot to unpack. Let’s dive into what might be coming and what it could mean for everything from home prices to construction projects.

Real Estate Pros Have Mixed Feelings

It’s no surprise that opinions are split in the real estate world about what Trump’s presidency could mean for housing. A recent survey of 1,200 real estate professionals by REsimpli showed:

71% are optimistic about growth during his term.
29% expect challenges and market uncertainty.

To me, this reflects the vibe I’ve been hearing from people in the industry: some are excited about the potential for deregulation and tax incentives, while others are worried about rising costs and affordability issues.

Are Building Materials Getting More Expensive?

If you’re planning a construction project or know someone who is, brace yourself—building materials might get pricier. According to the survey:

30% expect significant cost increases.
Another 30% predict moderate increases.
Only 16% believe prices will go down.

In my experience, when building materials go up in price, it impacts everything: new homes get more expensive, developers struggle to stay on budget, and affordable housing becomes even harder to find. This will be something to watch closely.

Deregulation: The Good, the Bad, and the Complicated

Trump has always been a fan of cutting red tape, and he’s likely to double down on that in this term. This could mean:

Faster project approvals and less hassle for developers.
Lower compliance costs for construction projects.

But here’s the flip side: deregulation could scale back important policies like affordable housing initiatives and climate-focused housing standards. For example:

Affordable housing programs: If federal funding gets reduced, we could see even fewer affordable housing options, especially in urban areas where demand is high.
Climate policies: During Biden’s term, stricter energy efficiency standards and flood risk management were introduced. Rolling those back might save developers some money upfront, but it could create long-term risks, especially in flood-prone areas.

From what I’ve seen, deregulation can definitely speed things up for developers, but it can also leave gaps—especially for things like affordable housing and workforce development.

Labor Shortages Still a Big Problem?

This one’s been an issue for years: there just aren’t enough skilled workers in construction. And without federal programs to support workforce training, this could get worse under a more deregulated environment.

What does this mean for the housing market? Well:

Construction timelines could slow down.
Labor costs might go up, which makes homes even less affordable.

If you’re a developer or builder, planning ahead for these labor challenges is going to be key.

Opportunities for Growth

Okay, let’s not get too doom and gloom—there are also some positives to look forward to. Trump’s deregulation approach could make things easier for developers by cutting out unnecessary bureaucracy. And there’s speculation that tax reforms or incentives might encourage more real estate investment.

If that happens, we could see more capital flowing into the housing market, which could benefit both developers and buyers.

What You Should Keep in Mind

Whether you’re directly involved in real estate or just trying to make sense of it all, here are a few things to consider:

Stay Informed: Policies are likely to shift, and keeping up with them will help you navigate the changes.
Keep an Eye on Costs: Rising material and labor costs could impact everything from home prices to new developments.
Adapt to Deregulation: Take advantage of the opportunities deregulation offers, but don’t overlook potential risks, like affordability challenges or environmental concerns.

What’s Next for the Housing Market?

If there’s one thing I’ve learned, it’s that the housing market always finds a way to adapt. Trump’s presidency is definitely going to bring changes, but how those play out will depend on the details—and on how the industry responds.

Now’s the time to stay flexible and keep a close eye on what’s happening. The next few years could bring challenges, but they could also open the door to some exciting opportunities.

Let’s see where this goes! In the meantime, if you’ve got questions or need help figuring out how to navigate these changes, I’m always happy to chat.

Post written by Michael Stephens from Living Local Texas.