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The upcoming presidential administration will likely have a significant impact on the real estate market, affecting affordability in various cities across the United States. As real estate prices rise, homeowners tend to borrow and spend more, leading to a boom in housing construction. However, this also makes living expenses increasingly out of reach for low- and middle-income individuals.
To understand how affordable cities might become under Trump's presidency, we consulted Silvia Lupone, a financial advisor and housing market analyst, and Lyle Solomon, a personal financial expert with over 30 years of experience.
Here are the four cities they believe will become more affordable:
St. Louis
Decades of decline have left St. Louis struggling. However, tariffs on imports could enhance competitiveness in the global setting, attracting people to the area for cost-effective housing and job opportunities. Trump's deregulation policies and lowered taxes may also persuade businesses to locate there, generating local jobs and wages.
Cleveland
Cleveland has been economically depressed since the Industrial Age ended. Lupone believes that Trump's tax policies will help turn this around by lowering corporate taxes, creating more jobs, and increasing wages for citizens. This could make housing and other goods more affordable.
Houston
Trump's commitment to deregulating the energy sector is expected to drive wealth up in Houston, making housing more affordable. Increased oil production and low environmental restrictions may lower energy costs, enabling the economy to survive and reducing living expenses, including housing prices.
Phoenix
Lupone chose Phoenix as the fourth affordable city due to immigration. With Trump's strong stance on stemming the flow of immigrants from Mexico, we may see a decrease in population pressure, easing the strain on housing prices. Additionally, Solomon notes that deregulation could remove zoning restrictions and enable lower building costs, adding to the housing supply.
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