US housing market It was a major issue for voters in the 2024 presidential election as low inventories continue to push home prices to new highs. Eye-popping price tags for homes and rising mortgage rates have put the American dream out of reach for a growing number of Americans in recent years amid a prolonged affordability crisis.

Both Vice President Harris and President-elect Trump have promised to address America’s housing problems if they win the White House. Trump emerges victorious This week he takes a fresh look at how property industry policies can affect the market.

a primary election Analysis by Realtor.com He offered mixed reviews of both candidates’ plans, praising some of their proposals while warning of the potential negative effects of others.

The online real estate company praised Trump’s plans to increase housing supply by targeting housing development regulations that he called “unnecessary” and “murderous.” The report said cutting regulations Considering that the cumulative cost of regulations at the federal, state and local levels adds more than $90,000 to the cost of a new home, it could make it easier for builders to add homes at lower price points.

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“Zoning codes, building codes and labor standards are just a few of the regulations that builders follow in the process of developing and building homes, among many things,” said Danielle Hale, chief economist at Realtor.com. FOX Business.

Houses are seen under construction in Sacramento, California, on July 3, 2023. (David Paul Morris/Bloomberg via Getty Images / Getty Images)

“Builders and developers pay fees directly to the government, bear costs to study the impacts of construction and comply with various rules, and also face delays while waiting for approvals,” Hale explained. “While many of these rules are undoubtedly well-intentioned, they incur costs that are ultimately borne by the consumer.”

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The analysis also noted that Trump promised to reduce and reduce inflation. mortgage rates It will benefit the housing market as it will reignite the stagnant market; Quoting lower rates would unlock homeowners who currently find it untenable to move because current mortgage rates are much lower than market interest rates, and would also improve buyers’ prospects.

But Realtor.com’s analysis argued against Trump’s plans to raise tariffs and reduce immigration, arguing that these proposals could have unintended consequences for the housing market.

Republicans argue that increased illegal immigration in the United States has contributed to rising housing costs due to increased demand; However, Realtor.com argues that reduced immigration could backfire on the real estate market.

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Reducing immigration could “seriously harm” the labor supply needed for new home construction in the short term, the report said. The analysis points to data from the National Association of Home Builders (NAHB) showing that up to one-third of residential construction employment is made up of foreign-born workers.

The report warns that reducing immigration figures could also harm demand in the housing market in the long term; because reducing immigration could lead to negative population growth in the United States, as the national total fertility rate in the United States stands at 1.67, well below the average in the United States. Population sustainment rate is 2.1.

Cardone Capital CEO and real estate investor Grant Cardone explains how the economy is on voters’ minds and why Trump will boost US markets.

“In other words,” he writes, “without immigration to fill the population replacement gap, the country would likely face falling aggregate housing demand.”

During some real estate experts While Realtor.com dismissed concerns about Trump’s plan to raise tariffs, it said increasing such taxes on imported goods could increase housing costs.

“A significant portion of construction materials, including cement, steel and lumber, are imported,” Hale said. “These goods are already subject to tariffs, and it is unclear to what extent additional duties will be imposed. What is more certain is that additional tariffs will likely mean higher prices for U.S. consumers.”

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