9 Things to Watch in Real Estate During Trump’s First 100 Days
Hey friends and family,
As you know, I love diving into the details of real estate trends, and with Donald Trump back in the White House, I wanted to share some thoughts on how his early policy decisions might impact the real estate market. These changes could touch everything from construction labor to housing affordability, and while some of this is technical, its also fascinating (at least to me!) how policies shape the market we see every day.
Let’s break this down into some key areas that are worth keeping an eye on:
1. Renewed Focus on Opportunity Zones
Remember those Opportunity Zones from Trump’s 2017 tax reforms? They encouraged investment in underdeveloped areas with tax incentives. There’s talk of extending and expanding the program beyond 2026, which could mean fresh opportunities for real estate development in these areas. Developers are already gearing up for this potential renewal.
2. Immigration and Construction Labor
Trump’s promise of mass deportations could have a big impact on the construction industry. Did you know that 25.5% of construction workers are immigrants? If deportations happen at scale, it could worsen the labor shortages we’re already seeing and drive up costs for new housing. This is a concern for builders across the country.
3. The Fight Over Remote Work
Trump has made it clear he wants federal employees back in the office. This could create ripple effects for commercial real estate as office spaces adjust to new usage trends. It’s also a reminder of how remote work policies influence demand for both residential and commercial properties.
4. Tariffs and Inflation
Trump’s tariff proposals could boost American manufacturing and industrial real estate demand, but they might also raise construction costs. Tariffs on imports could fuel inflation, and developers are already stockpiling materials to get ahead of this.
5. Privatization of Fannie Mae and Freddie Mac
Trump is revisiting efforts to privatize Fannie Mae and Freddie Mac, which play a huge role in the mortgage market. Any major changes here could shift how mortgages are financed and how affordable they remain for homebuyers.
6. Cutting Red Tape for Affordable Housing
Trump’s nominee for HUD, Scott Turner, is pushing to cut regulations to boost housing development. If he succeeds, we might see more affordable housing projects fast-tracked, which could be a game-changer for communities across the country.
7. Development Fast Tracks for Big Projects
Trump announced a plan to fast-track permits for projects worth $1 billion or more. If implemented, this could accelerate large-scale developments, but there are legal and environmental hurdles to overcome first.
8. Cryptocurrency and Real Estate
Trump has his own cryptocurrency venture and is signaling interest in regulating digital currencies. This could make crypto transactions in real estate more mainstream, opening new doors for how people buy and invest in property.
9. Trump the Dealmaker
Trump’s personal business dealings often overlap with his presidency, which could shape real estate trends in unexpected ways. While he’s leaving day-to-day operations of the Trump Organization to his sons, his policies could indirectly benefit sectors where he’s already invested.
Final Thoughts
It’s clear that the next 100 days will be busy for the real estate world, with plenty of opportunities and challenges ahead. For me, this all boils down to how these policies will impact the homes we live in, the buildings we work in, and the investments we make.
What do you all think about these potential changes? Whether you’re curious about how this affects housing, construction, or the market overall, I’d love to chat more!
Thanks for reading,
Daniel
Comments
Post a Comment