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s President-elect Donald Trump's second term begins, the real estate industry is bracing for potential changes that may impact housing affordability and availability. The nation currently faces a shortage of 7 million affordable homes, with many first-time buyers priced out of the market.

    Trump has hinted at addressing this issue by using federal land for housing development, reducing regulation costs to 30% of new home prices, and creating ultra-low tax zones on federal land. He also plans to lower the corporate tax rate from 21% to 15%, which could stimulate housing activity and boost investment.

    However, Trump's "mass deportation" plan may have a direct effect on housing, particularly if it leads to a significant reduction in undocumented construction workers. According to estimates, mass deportation could strip about 1.5 million workers from the construction workforce, exacerbating labor shortages and potentially leading to increased home prices.

    Project 2025, a right-wing policy wish list published by The Heritage Foundation, offers a detailed playbook for Trump's housing agenda. It includes weakening the Fair Housing Act, repealing the Affirmatively Furthering Fair Housing rule, and ending policies that tackle racial bias in home appraisals. These changes could have far-reaching consequences for low-income and homeless individuals.

    Trump has also expressed interest in reducing mortgage rates to 3% or lower, but this is outside his control as president. Mortgage rates have already climbed since September, with yields on the 10-year Treasury rising to 4.44%. Investors may be anticipating higher tariffs, immigrant deportations, and deficit-financed tax cuts under a Trump administration.

    As real estate agents navigate these uncertain times, it's essential for them to stay informed about potential policy changes that could impact their clients' housing needs.