President Donald Trump, who began his second term on January 20, 2025, has outlined several initiatives aimed at addressing the housing affordability crisis and boosting the real estate market. Within his first few days in office, Trump issued an emergency order directing executive departments and agencies to "deliver emergency price relief," which includes lowering housing costs and expanding supply.
The Trump administration has identified regulatory requirements as a major factor contributing to the housing affordability issue. In his previous term, Trump reduced regulatory costs by almost $11,000 per household. For his current term, he has proposed using federal land for housing development to help meet demand, suggesting the creation of "zones" with ultra-low taxes and regulations to stimulate small business job creation.
Trump has also expressed a desire to lower mortgage rates, aiming for around 3% or potentially lower. While the president doesn't directly set mortgage rates, his policies and appointments to the Federal Reserve could influence them. Additionally, Trump has indicated plans to increase the cap on state and local property tax deductions, which were set at $10,000 as part of the 2017 tax law.
Real estate professionals should be aware that these proposed changes could potentially impact the market in various ways. However, it's important to note that many housing regulations, such as zoning laws and permitting, are controlled by local governments. The federal government's role in implementing significant changes may be limited without cooperation from state and local authorities.