P
resident-elect Donald Trump's return to the White House brings a familiar face to real estate interests. However, his ability to implement their agenda is not guaranteed, as he still needs Congress to pass key legislation. A Republican-controlled Senate and an undecided House of Representatives will determine the fate of Trump's tax proposals, including cutting corporate tax rates and renewing benefits like Opportunity Zones.
Industry players are cautiously optimistic about Trump's presidency, citing his focus on streamlining regulations and preserving 1031 exchanges. Jared Epstein, president of Aurora Capital Associates, believes Trump's policies will allow developers to bring projects to life faster and more affordably. Jeff Gural, chair of GFP Real Estate, hopes Trump will stick to his pledge to repeal the $10,000 cap on state and local tax deductions.
Trump's cabinet choices may also favor industry interests, with Howard Lutnick heading his transition team. Bess Freedman, CEO of Brown Harris Stevens, thinks Trump's experience in real estate could be a positive, but notes that "forgetting the emotion of this, wearing a business hat," she still has concerns about his policies.
Pro-housing groups had backed Vice President Kamala Harris, who proposed building 3 million homes during her first term by expanding construction tax credits and incentivizing localities to cut red tape. However, Trump's plans for housing are unclear, and he has expressed support for building on underutilized federal land and easing regulations that slow down construction.
Experts warn that Trump's economic plan, which relies heavily on tariffs, could raise the price of consumer goods and lead to higher inflation, mortgage rates, and reduced home affordability. The Department of Justice's enforcement of antitrust laws may also change under Trump, potentially affecting the real estate industry.
The market has reacted positively to Trump's election, with the Dow Jones Industrial Average jumping over 1,500 points on Wednesday. Briggs Elwell, CEO of RLTYco, attributes this surge in market confidence to a "fundamental shift in the marketplace."
