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Trump is once again the President of the United States, and with his return, big changes could be on the horizon for real estate in 2025.
Here’s what 14 experts forecast for property prices, investment trends, and more.
Ready to see what’s next for buyers, sellers, and investors? Let’s dive in.
This article gives you valuable insights, but remember, it’s not and will never be investment advice. We pull data from a range of sources to provide you with the most accurate picture possible, yet we can’t guarantee complete accuracy. Markets are difficult to predict. Make sure to do your own research and consult a professional before making any financial moves. Any risks or losses are your own responsibility.
1) Moody's Chief Economist Mark Zandi warns Trump’s policies may make homes less affordable
Mark Zandi, Moody's Chief Economist, says that Trump's potential policies—like higher tariffs, stricter immigration, and tax cuts—could drive up inflation and push mortgage rates higher.
That means buying a home could get pricier as borrowing costs rise.
Zandi also warns that if Fannie Mae and Freddie Mac get privatized, mortgage rates could jump, adding hundreds to the average homeowner’s yearly costs.
So, in short, Zandi thinks Trump’s policies could make it tougher to afford a home.
Sources: Economy, AP News, Market Watch
1) First Trust Financial's CEO believes Trump win will lead to more house sales
Harlee, president and CEO at First Trust Financial, anticipated that a Trump win would lead to a significant refinance boom and a surge in home sales, driven by potential recommendations to the Federal Reserve to lower interest rates.
This strategy aims to stimulate the economy rapidly, benefiting sectors like car sales and home equity lines of credit.
However, Harlee also cautioned that reduced interest rates could result in higher housing prices and decreased supply, as increased demand outpaces availability.
Additionally, while tax cuts and deregulation under Trump's administration might boost disposable income and housing demand, they could also introduce inflationary pressures.
In response, the Federal Reserve might raise interest rates to control inflation, potentially making mortgages more expensive and affecting housing affordability.
Sources: GoBankingRates, First Trust Financial
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2) Redfin’s economist doubts Trump’s plan and thinks housing costs will rise
Daryl Fairweather, Redfin's Chief Economist, is skeptical about President Trump's plan to use federal lands for housing development.
She points out that most federal lands are in rural areas, which doesn't help cities where affordable housing is needed the most.
Fairweather also warns that Trump's proposed tariffs on imported materials, especially from China, could increase construction costs, leading to higher prices for homebuyers.
She believes these factors could make it difficult for Trump to achieve his goal of making housing more affordable.
Sources: Redfin, Fast Company
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3) Grant Cardone sees Trump’s return as a boost for real estate
Grant Cardone, a prominent real estate investor and CEO of Cardone Capital, considers Trump’s potential return to office as a major advantage for real estate.
Cardone is foreseeing that Trump would push the Federal Reserve to lower interest rates, which could make mortgages significantly more affordable and lead to a surge in housing market transactions.
He believes that Trump’s focus on deregulation would encourage growth opportunities for real estate investors and expand middle-class wealth by easing current affordability challenges that hinder market activity.
Finally, he views Trump’s approach as a solution to many issues facing real estate, particularly by increasing accessibility and supporting a stronger, more active housing sector.
Sources: New York Post, Fox Business
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4) Realtor.com’s economist Ralph McLaughlin thinks Trump’s deportation plans will hurt construction labor
Ralph McLaughlin, Senior Economist at Realtor.com, has expressed concerns about Trump's proposed mass deportation of undocumented immigrants, noting that such actions could significantly disrupt the labor supply in the construction industry.
McLaughlin points out that up to a third of residential construction workers are foreign-born, and reducing this workforce could hinder new homebuilding efforts, exacerbating housing shortages and affordability issues.
Additionally, McLaughlin has commented on the potential effects of removing the $10,000 cap on state and local tax (SALT) deductions. He suggests that eliminating this cap would benefit higher-income earners and owners of luxury real estate, potentially increasing interest in high-end properties.
Sources: Realtor, Mansion Global
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5) LendingTree’s economist calls Trump's mortgage rate promises unrealistic
Channel, Senior Economist at LendingTree (a loan marketplace), highlights that while Trump’s proposed mass deportations target undocumented immigrants, many of whom work in construction, these actions could worsen labor shortages.
With fewer workers available, costs would rise and project timelines could slow down, impacting housing affordability.
Channel adds that Trump’s promises to lower mortgage rates to pandemic levels are unrealistic, as presidents don’t directly control these rates.
Sources: CNBC, Lending Tree
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6) RREAF's COO sees Trump’s real estate background as a good thing
Jeff Holzmann, COO of RREAF Holdings (a Texas-based commercial real estate company), believes President Trump's real estate background could lead to industry-friendly policies.
He suggests that reduced regulations and favorable lending terms might boost development, increasing housing supply and competition, benefiting buyers and investors.
While Wall Street's optimism is encouraging, Holzmann notes uncertainties remain, particularly concerning potential tariffs and key government appointments.
Sources: RREAF Holdings, NewsWeek
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7) The National Association of Home Builders' CEO says Trump’s deregulation could cut housing costs, but immigration policies may raise labor costs
Tobin, president and CEO of the National Association of Home Builder, believes that Trump’s plans to open up federal lands for housing and cut regulatory barriers could help lower housing costs.
Regulations currently account for about 24% of single-family home costs and 41% of multifamily housing costs, so reducing these could lead to more affordable prices.
However, Tobin also notes potential challenges, as Trump’s immigration policies could reduce the immigrant labor pool that construction heavily depends on, potentially raising wages and extending project timelines.
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8) GreenLite’s COO says Trump-backed lower rates could boost housing supply
Ben Allen, co-founder and COO of GreenLite, a construction permitting platform, believes that if President Trump fosters conditions for the Federal Reserve to lower interest rates, it could lead to a surge in real estate development nationwide.
Lower borrowing costs would make it more affordable for developers to finance new projects, potentially increasing the supply of housing more quickly.
This boost in housing availability could benefit everyone involved—developers, buyers, and sellers—by making homes more accessible and stimulating market activity.
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9) Realtor.com's Chief Economist suggests Trump's policies may boost housing supply but also raise costs
Danielle Hale, as the Chief Economist at Realtor.com (a leading real estate listings website), provides expert analysis on housing market trends.
She describes the potential impact of President Trump's policies on the housing market as uncertain.
On one hand, his plans to reduce regulations and open up federal lands for development could increase the number of homes available, addressing the current shortage.
However, these benefits might be offset by unintended consequences. For instance, implementing tariffs could raise the cost of building materials, and stricter immigration policies might lead to labor shortages in construction.
Both factors could drive up housing costs, contributing to inflation. Therefore, while some policies aim to boost housing supply, they may inadvertently make homes more expensive
Sources: FoxBusiness, Realtor
10) MIT’s Albert Saiz says Trump overstates immigration’s effect- high construction costs drive housing prices more
Albert Saiz, a professor of urban economics and real estate at MIT, made several key observations about Trump's potential impact on real estate.
Saiz acknowledges a modest impact of immigration on housing prices but argues it’s much smaller than Trump claims. While immigrant populations can push up housing costs when supply is tight, this effect is minor and doesn’t explain most recent rent hikes.
Construction costs, according to Saiz, are a much bigger factor in high housing prices, especially in the Southwest and West, where they make up more than two-thirds of new home prices. In regions like California and New England, construction costs account for 40–60% of a home’s value. He adds that construction methods have barely changed, with “construction sites today looking much like they did 30 years ago.”
Regarding Trump’s deportation policies, Saiz argues that while reducing immigration might lower housing demand, it could also raise construction costs and disrupt supply. The link between immigration and housing prices, he explains, is more complex than just supply and demand, especially in areas with high immigrant populations.
Sources: npr, Technology Review, MIT
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11) The Bipartisan Policy Center's Dennis Shea says Trump’s deregulation plan could boost affordable housing
Dennis Shea, Executive Director of the Bipartisan Policy Center's Terwilliger Center for Housing Policy, explained that Trump’s plan to address housing focuses on reducing regulations and opening federal lands for development to boost the housing supply.
He thinks this could make construction cheaper and encourage private developers to build more affordable homes.
However, Shea noted that this approach will only work if state and local governments are willing to cooperate. Without that support, these efforts might fall short.
To effectively tackle the housing shortage, Shea believes all levels of government need to work together.
Sources: Kuow, Bipartisan Policy Center
11) Real estate professional believes Trump can help developers
Kateryna Odarchenko, a political strategist and licensed real estate professional in Maryland, has shared insights on the housing market in light of Donald Trump's 2024 presidential campaign.
She notes that housing and construction are increasingly significant in American politics, with rising living costs and housing affordability being major concerns for many Americans. Odarchenko observes that Trump's campaign includes initiatives related to the housing market and construction sector, building on policies from his previous term.
During his first term, Trump worked on increasing homeownership rates.
She suggests that Trump's focus on policies like privatizing Fannie Mae and Freddie Mac and tax incentives in underdeveloped areas would benefit developers but may not address broader issues of housing affordability.
Sources: Linkedin, GoBankingRates
12) Bankrate’s analyst consider that real estate is just not influenced by elections
And to wrap it up on a lighter note amidst all these expert predictions, here's a more detached take.
Jeff Ostrowski, a seasoned analyst at Bankrate (a consumer financial services company based in New York City), who spent more than 20 years writing about real estate, points out that the idea of real estate is not really impacted by a presidential election.
Instead, factors like mortgage rates and home prices are driven by ongoing market conditions, not who's running for office.
His advice? If you're ready to buy or sell a home, go ahead—don't let election events hold you back.
Sources: MuckRack, BankRate, Des Moines Register
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So, will Trump's next term shake up the real estate market? It's complicated!
Experts have mixed opinions on how Trump's policies might impact the real estate market. Some believe his approach could make homes more affordable, while others think it might do the opposite.
For instance, Mark Zandi from Moody's warns that Trump's policies could raise inflation and mortgage rates, making homes less affordable. On the flip side, Grant Cardone sees potential for lower rates and deregulation, which could boost the market. Meanwhile, Daryl Fairweather from Redfin is skeptical about Trump's federal land plans, noting they might not help urban housing needs.
Labor shortages are another concern. Ralph McLaughlin from Realtor.com and Channel from LendingTree highlight that Trump's immigration policies could disrupt the construction labor supply, potentially raising costs. However, some like Jeff Holzmann from RREAF Holdings see Trump's real estate background as a plus, expecting industry-friendly policies to spur development.