JAN 12, 2025
As Donald Trump prepares to reassume the presidency, many are questioning how his administration will handle the nation’s housing crisis. With vague proposals during his campaign, including deregulation, tax cuts, and controversial immigration-related ideas, realtors are left wondering how these plans will materialize and what they mean for the real estate market.
Here, we break down what to expect and how the upcoming changes could impact realtors, homebuyers, and renters alike.
Trump’s approach to housing during his first term provides some insights into what may lie ahead. His administration emphasized reducing federal oversight and reallocating resources, and his alignment with Project 2025, a policy playbook developed by the Heritage Foundation, offers further clues. Although Trump has distanced himself from the project, its housing section—written by former HUD Secretary Ben Carson—suggests priorities like limiting federal housing programs and emphasizing single-family homeownership over multifamily developments.
In Trump’s first term, proposed changes to Section 8 included limiting eligibility based on immigration status, potentially affecting mixed-status households. Realtors working with landlords who accept housing vouchers should prepare for stricter rules and possible reductions in funding, which could shift the rental landscape.
These grants fund essential city programs, such as New York City’s housing-code-enforcement inspectors. Cuts to CDBG funding could lead to fewer resources for addressing tenant complaints, such as heat and water issues, indirectly impacting property values and tenant satisfaction.
LIHTC, a critical tool for financing affordable housing projects, may face changes. The prior administration considered eliminating it, and while it enjoys bipartisan support, its future under Trump remains uncertain. Realtors involved in affordable housing developments should monitor this closely.
Project 2025 emphasizes preserving the “American Dream” of single-family homeownership while deprioritizing multifamily developments. However, addressing housing supply shortages—especially in high-demand markets—requires diverse housing types, including townhomes and apartments.
Realtors in suburban areas may see less support for multifamily projects, potentially slowing efforts to meet growing demand.
One of Trump’s few concrete proposals is building on federal land. While this could increase supply in some regions, its practical implementation remains unclear. For realtors, this is more a campaign talking point than an actionable solution.
Trump is expected to roll back fair housing rules requiring cities to disclose and address housing segregation. This could embolden suburban areas to resist affordable housing developments, creating hurdles for realtors advocating for diverse housing options.
Potential changes to the CRA, which prevents discriminatory lending practices like redlining, could alter how financial institutions serve underserved areas. Realtors should be prepared for shifts in how mortgage lending operates in these communities.
Trump’s plans for renters remain largely undefined. Proposals to deregulate and reduce federal intervention could lead to fewer protections for tenants, especially in high-cost urban markets. Realtors working with rental properties should brace for possible market disruptions and shifts in tenant behavior.
While many of these policies present challenges, a reduced federal role could empower state and local governments to innovate. For example, markets like Texas and Florida—which have successfully added housing supply—may continue to thrive. Realtors should focus on areas where local policies align with market growth and opportunity.
The upcoming administration’s housing policies are likely to reshape the real estate landscape in significant ways. While some proposals may benefit single-family home markets, cuts to federal programs and shifts in fair housing rules could pose challenges for renters and affordable housing efforts. By staying proactive and informed, realtors can navigate these changes and continue to serve their clients effectively in a dynamic housing market.
Disclaimer: This content is meant for informational purposes only and is not intended to be construed as financial, tax, legal, or insurance advice.
