Real estate experts anticipate changes to housing policy following Donald Trump’s election victory. His promises of lower interest rates and reduced development regulations have taken center stage in his approach to the market.

The president-elect’s platform focuses heavily on removing barriers to new construction, including eliminating regulations that currently add over $90,000 to new home prices. His administration also plans to open federal lands for housing development.

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“Many in the real estate business are elated with a Trump victory and if the administration can live up to its campaign promises, rightfully so,” Alex Beene, financial literacy instructor at the University of Tennessee at Martin, told Newsweek.

“For months, he has been advocating for lower interest rates, which have become one of the most significant barriers to home ownership in the post-pandemic years,” he said.

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According to Realtor.com Chief Economist Danielle Hale, potential Republican control of Congress could accelerate these policy changes. However, she noted that Trump’s proposals present both opportunities and challenges for the housing market.

While supply-side policies might boost housing inventory, some measures could have unintended consequences.

Proposed immigration restrictions could affect the construction labor force, with Census Bureau data showing that up to one-third of residential construction relies on foreign-born workers.

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Industry leaders see potential benefits in Trump’s real estate background. “The fact that Trump is a real estate developer himself also lends to the feeling that he ‘understands’ the market and what drives demand, quality and profits,” said Jeff Holzmann, Chief Operating Officer of RREAF Holdings, to Newsweek.

Ben Allen, cofounder of construction permitting platform GreenLite, predicted increased development activity if interest rates decline. 

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“A lower cost of capital with better economics for developers should help accelerate development while bringing more housing inventory online faster,” Allen told Newsweek. “The entire market benefits – developers, buyers and sellers alike.”

The housing sector faces a significant supply shortage, with estimates ranging from 2.5 to 7.2 million needed homes over the past decade.

It remains to be seen whether Trump can address the fundamental challenges while managing market dynamics. However, experts do expect relief during the former president's second term.

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