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onald Trump will return to the White House for a second term after securing enough Electoral College votes from key swing states. Republicans have also regained majority control of the Senate, while control of the House remains uncertain due to several tight races still being counted.
Trump's victory comes as the country grapples with a housing crisis, with half of renters nationwide designated as cost-burdened and record-high home prices pushing homeownership out of reach for many. On the campaign trail, Trump blamed rising home prices on illegal immigration during the Biden administration and promised to lower mortgage rates.
However, experts say that mass deportations would have severe consequences on the US housing market, including a reduction in labor supply needed for new homebuilding. LendingTree senior economist Jacob Channel agrees that tackling illegal immigration will not solve the fundamental issues with the housing market.
Trump has also proposed cutting regulations and permit requirements to reduce costs associated with building new homes. While economists agree that streamlining regulations could help boost home construction, it's unlikely to achieve the extent of price relief Trump envisions.
Additionally, Trump plans to open up federal land for large-scale housing construction, which some experts support as a way to boost new home construction. However, much of the federal land is located in the Western US, and there may be little land available near areas where people want to work and live.
Trump has also claimed that he would lower mortgage rates, although there is no clear mechanism for the president to do so. Economists say that the Federal Reserve sets monetary policy independently, and even if Trump wanted to lower mortgage rates, it's unlikely he could do so.
Most economists agree that a dire shortage of homes is the root cause of the nation's housing affordability crisis. Housing supply has plagued the US market for at least a decade, with an estimated 2.5 million to 7.2 million unit gap from 2012 to 2023. While Trump's proposals may help boost construction on the margins, they are unlikely to solve the fundamental issues with the housing market.
Experts warn that enacting Trump's proposals could hamper supply and cause more problems than they solve. The housing crisis in America is a complex issue that requires a multifaceted solution, and quick fixes are unlikely to emerge.
