Trump’s Policies Could Strengthen—Or Slow—the Housing Market. Here’s How. | Global News Avenue

Elected by President Donald Trump has the opportunity to have a significant impact on the US real estate market, especially when the Republican Party swept the House of Representatives and the Senate. But what form will these effects appear?

Realtor.com chief economist Danielle Hale said: “The scale and direction of ‘Trump’s rise” will depend on what campaign proposals will eventually become a policy and when to become a policy. “” The new government’s of the new government Policies may promote or hinder real estate recovery, and details are important. “

Some policies implemented by Trump may make the supply of new housing easier to place the market. At the same time, although the president does not set the mortgage interest rate, some policy changes proposed by Trump may affect its trajectory.

Trump’s policy can help housing supply

The National Real Estate Broker Association estimates that by 2023, the shortage of housing across the country will reach 4 million to 6 million units. Among the available housing, only 23% of houses with median income can be affordable.

In his presidential agenda, Trump proposed the opening of the “limited part of the federal land to allow the construction of new houses.” Heir said that as president, Trump can use influence to make housing construction easier, thereby increasing inventory.

During the campaign, Trump also stated that he would solve those Make the construction of housing builders more difficultEssence According to the National Housing Architects Association, regulations have led to the price of new houses rising by more than $ 93,000.

Some policies may change the mortgage interest rate, hinder supply to supply

Trump proposes to levy 10% to 60% of imported products. Some people think Economists say this will lead to higher inflationEssence According to the responsible federal budget committee, Trump’s proposals for extending the 2017 “Tax reduction and employment Act”, cutting overtime revenue, and ending social security and welfare taxation will increase the expected debt in 2035 to increase by $ 7.75 trillion.

As some investors expect the inflation rate or federal deficit, The market has risen this 10 -year government bond yield rate,, The interest rate of mortgage loans is linked to the 10 -year Treasury yieldIf the yield continues to rise, the mortgage interest rate may remain at a high level.

In addition, Trump promised to “large -scale deportation” on unlicensed immigrants during the campaign. He claimed that this stimulated demand and “pushed up the cost of housing.” but Large -scale deportation in the short term may also damage inventory: Realtor.com said that one -third of the residential construction workers are foreign workers.