As the 2024 presidential election approaches, many Americans, dissatisfied with the current economic climate, are turning their attention to the potential implications of a second term for Donald Trump. The U.S. real estate industry is among those closely watching the developments, with speculations about how Trump’s policies might affect the housing market.
As Yahoo Finance reports, Kateryna Odarchenko, a prominent political strategist with a real estate license in Maryland, has offered insights into how Trump’s campaign promises could influence the housing sector. According to Odarchenko, Trump’s 2024 campaign focuses on several key initiatives for the housing market and construction sector, aiming to build upon the policies from his first term.
“Donald Trump’s campaign includes proposals that could significantly impact the housing market,” Odarchenko noted. “His previous efforts to increase homeownership rates, extend eviction moratoriums during the pandemic, and his proposals for privatizing Fannie Mae and Freddie Mac have set a precedent. These policies have far-reaching implications for future homebuyers and the broader housing market.”
Odarchenko also pointed out that Trump’s administration introduced tax reforms such as opportunity zones, designed to stimulate investment in underdeveloped areas, while also capping property, income, and sales tax deductions. These measures affected homeowners differently across the country.
“If Trump wins reelection, we could see a renewed focus on these initiatives,” Odarchenko explained. “However, it’s important to consider both the potential benefits and risks. While deregulation and tax cuts might stimulate economic growth and increase demand for homes, they could also lead to rising housing prices and reduced supply.”
Economists like Marty Harlee, president and CEO of First Trust Financial, and Dennis Shirshikov, professor of finance at the City University of New York, have weighed in on the broader economic impacts. Harlee anticipates a refinance boom and record home sales if Trump recommends lower interest rates. Conversely, Shirshikov cautions that deregulation and tax cuts could spur inflation, potentially leading to higher interest rates and reduced housing affordability.
Odarchenko emphasized that Trump’s tenure was marked by significant market volatility, partly due to his unconventional policy approaches. This unpredictability could create uncertainty in the housing market, leading to hesitation among potential buyers and investors.
“As we move closer to the election, it’s crucial to monitor how these policies and their potential effects might shape the real estate landscape,” Odarchenko said.