Much has been heard about the possible impact Donald Trump might have in taxes, international relations, immigration, trade policies and in the housing market, even before the election. But, we can’t say that for sure even after Donald Trump won the U.S Presidential election. What we all know is that there is still a controversy about Trump limiting the role of the Federal Government in the housing market. This was made clear in his rhetorical platform during the campaign period of the recent presidential election.
The priorities of the elected President since the Election Day were immigration, taxes and upgrades of the existing US infrastructure. If we’ll take a closer look, the housing market will not be affected by these 2 major priorities within the short-term period. However, if Trump will put many restrictions on immigration, this could also limit foreign real estate investment.
Trump did not say anything much about the housing policy during his campaign. But, on his speech to the National Association of Homebuilders, he did propose to lessen the cost of a home due to mortgage lending regulation from 25% down to 2% which is obviously a very big change. While this may sound remarkable for Americans, what Trump said in his campaign speeches doesn’t necessarily mean he’s going to do it after winning. So, this is something that we need to watch out for. In case it happens, the demand for homes would absolutely increase rapidly. If the housing demand increases, it would also mean a sudden increase for house prices, which would of course greatly affect the first time homebuyers and the next generation.
For the crowd of aspiring homeowners, housing is already too expensive, much less when the housing demand increases? For this reason, housing economists say that this housing problem may worsen under the new administration.