Housing was a crucial topic during the recent presidential election. Both Vice President Kamala Harris and President-elect Donald Trump addressed housing affordability early on, highlighting its importance. Ayrianne Parks, a senior director at Enterprise, a nonprofit tackling the lack of affordable rental homes, noted that housing had never been as central to a presidential campaign as it was this time.
As Americans cast their ballots on Nov. 5, housing affordability played a significant role in the voter’s decision. The hardest-hit housing markets saw substantial shifts in median votes towards Trump compared to the 2020 election. The surge in home prices, rising by over 50% since the onset of the COVID-19 pandemic, underscored the urgency of addressing housing affordability issues.
While Harris led the discourse surrounding housing, Trump remained relatively silent on his housing policies during his campaign. In his policy platform, Agenda 47, Trump pledged to eradicate Veterans’ homelessness and address general housing challenges. Now that Trump is gearing up for his second term, speculation on his housing plans is rife, drawing from the successes and failures of his first administration.
Here are three crucial areas where Trump’s presidency may impact the housing sector:
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Mass Deportation of Immigrants
- Trump and Vice President J.D. Vance proposed the largest deportation program in history to reduce housing prices. However, experts suggest this strategy may not directly address housing affordability but could result in increased costs and delays in the construction market.
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Open Federal Lands for Construction to Increase Housing Supply
- Trump promised to reduce regulations and open federal lands for housing construction. While Biden supported repurposing federal land for affordable housing, experts believe the success of this initiative will hinge on its implementation.
- Interest Rates, Budgets, and Taxes
- Trump’s plans to lower interest rates and inflation could influence mortgage rates. Additionally, concerns over proposed budget cuts to housing programs have been raised, although the Low-Income Housing Tax Credit remains a bipartisan priority.
In conclusion, the impact of President Trump’s second term on housing remains uncertain. Addressing these key areas and implementing effective policies will be crucial to tackling the housing crisis. Collaboration between stakeholders and policymakers will play a vital role in shaping the future of housing affordability in America.
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