O
n his first day back in office, President Donald Trump signed a flurry of executive orders that will significantly impact the real estate industry. The president's agenda aims to roll back actions taken during the Biden administration and implement policies from his second-term plan.

    Trump reflected on his experience as a real estate developer, saying he initially thought they were "far worse" than politicians, but later realized they are actually "quite nice." For those in the real estate industry, four key policies to be aware of include:

    1. Trump's orders related to the federal workforce could reduce demand for office space by cutting government waste and freezing hiring. The Department of Government Efficiency, led by Elon Musk, aims to overhaul the hiring process and eliminate identity politics-based candidate selection.

    2. An order targets housing costs by reducing regulations and expanding supply. According to analysis, regulatory requirements account for 25% of new home construction costs, while Biden-era regulations imposed almost $50,000 in additional costs per household. Trump's plan seeks to restore purchasing power to American families.

    3. The president declared a national energy emergency, pledging to tap into natural resources to expand the energy supply, particularly in the Northeast and on the West Coast. This could impact the data center business, which relies heavily on power. Analysts expect a focus on natural gas-based incentives and power generation.

    4. Trump appointed Jay Clayton as U.S. attorney for the Southern District of New York, where he will oversee cases involving commercial real estate. Clayton has expressed concerns about smaller banks' exposure to CRE, citing potential problems if interest rates remain low and office occupancies don't improve.