Trump Administration's Policies and Real Estate

The way Americans are experiencing the 2024 election results is as varied as the electorate itself, but we are all wondering what the impacts of the incoming Trump administration’s proposed policies will be on a housing market that has been consistently turbulent since 2019.

As agents, it’s our responsibility to help clients achieve their housing goals in any climate.  As you’re doom-scrolling headlines about real estate, please keep in mind that the entire industry is made up of micro-markets and there is absolutely no such thing as a ‘national trend’ when it comes to housing. What does influence affordability in every market is the relationship between supply and demand. Supply describes the number of desirable houses available within a local market, whereas demand is buyers’ ability to purchase those homes (i.e. income and mortgage rates). In general, things like tariffs and deportation of immigrants (estimated to account for a third of the homebuilding workforce) constrain supply as fewer houses are built or rehabbed. On the demand side, inflation decreases buying power and rate hikes increase the cost of borrowing. Both have a negative impact on demand overall. The relationship between these forces determines affordability in any given market, but vary in their impact locally. In addition to supply and demand, refusal to acknowledge and react to climate change will impact where homeowners can safely live and their ability to insure their properties against future damage.

That sounds terrible, doesn't it? Now some good news: while the incoming administration has promised to enact policies that will exacerbate some of the factors already limiting affordability, Philadelphia is not as dependent on new construction to increase supply as our suburban and rural counterparts. What’s more, the variety of housing options in and around Philadelphia allows local buyers to shop for properties that fit comfortably within their budget (condos, rowhomes, single/multifamily, etc.). Regarding the environment, Philadelphia and our metro areas are faring relatively well as our climate shifts, compared to regions to the South and West of our country. All this is to say, if you’re interested in selling your home, and/or buying something new, close your news apps, and talk to an agent. The coming years will undoubtedly bring challenges to the housing market, but opportunities will emerge as well. No matter what, we’re here to help!