T
he real estate industry has been navigating a tumultuous landscape in recent times, with many professionals harboring concerns about the future of their business. A survey conducted by REsimpli, a real estate software company based in Indiana, sheds light on these anxieties. The poll gathered responses from 1,200 real estate professionals across the country.

    The survey was prompted by growing uncertainty surrounding the US real estate market and potential policy changes under President-elect Donald Trump's administration. While nearly 29% of respondents anticipate more market challenges and volatility, a significant 71% are optimistic about positive changes and growth.

    Despite this overall optimism, several pressing concerns persist among all respondents. Rising costs for building materials top the list, with approximately 60% worried about increasing construction expenses. About 30% expect significant increases, while another 30% foresee moderate hikes. Conversely, 24% believe there will be no changes, and 16% anticipate cost declines.

    Tariffs proposed by Trump are likely a contributing factor to these concerns. The president-elect plans to impose tariffs ranging from 10% to 20% on foreign imports, with even higher rates for goods coming from China. Industry analysts warn that consumers would ultimately bear the brunt of such measures.

    Foreign investors may also be deterred from US real estate markets due to Trump's policies, according to 51% of surveyed agents. This concern is not new, as international investments have been declining in recent years. A report by the National Association of Realtors found that foreign investment volume in existing US homes fell 21.2% during the year ending in March.

    Skilled labor shortages are another issue feared by real estate agents, with 46% anticipating a shortage. This concern may stem from Trump's plan to "seal the border" and deport millions of immigrants employed in the construction labor force, according to the National Association of Home Builders.

    Interestingly, 34% of respondents believe there will be minimal impact on skilled labor, while another 20% think that workers from different regions will be motivated to join the workforce. Affordable housing issues are a pressing concern for many, with 44% predicting a decline in affordable housing options. Rising construction costs and reduced government support are contributing factors, along with current market conditions such as high mortgage rates and home prices.

    Affordable financing options may also become more challenging, according to respondents. REsimpli notes that 28.5% expect securing financing will become much tougher, especially for first-time buyers, due in part to the privatization of Fannie Mae and Freddie Mac. The report cites NAR data showing that first-time homebuyers accounted for only 24% of all home purchases between July 2023 and June 2024, the lowest share since 1981.

    The US housing market stands at a critical juncture, with affordability concerns at historic levels and mortgage rates creating significant barriers to entry. The presidential inauguration is set for Monday, January 20.