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onald Trump's return as president has sparked expectations among some voters that he will tackle issues like housing affordability and inflation. Redfin CEO Glenn Kelman notes that young voters who swung right in this election may be looking for Trump to act as a real estate developer-in-chief, building homes they need.

    Home prices skyrocketed during the pandemic due to remote work and low mortgage rates. However, when the Federal Reserve raised interest rates to combat inflation, mortgage rates increased, leaving Americans with high home prices and rates. This has led to depressed sales, as some can't afford homes while others won't sell at the risk of losing their low mortgage rate.

    Kelman suggests Trump could alleviate this issue by relaxing regulations on home-building, such as environmental reviews and limits on apartment buildings in single-family neighborhoods. While states and localities control development through land-use regulations, Trump could create incentives for them to build more housing. As a former real estate scion, Trump may be well-positioned to tackle this problem.

    Since the election, demand for homes has surged, with Redfin's site seeing a 25% increase in buyer requests over last year's same weekend. Mortgage rates have also risen in anticipation of another Trump presidency, potentially pushing the housing market further into a standstill. It remains to be seen if demand will continue under Trump 2.0, but this "bizarre pairing" may create a challenge for the president-elect.

    Home prices are unlikely to fall significantly, as we're missing millions of homes and many homeowners have low interest rates that keep them locked-in. The Fed has acknowledged it can't fix the housing market, leaving Trump's approach uncertain. His housing policy is expected to involve mass deportation of illegal immigrants and either deregulation or more regulation, but how this will play out remains to be seen.