The 2024 U.S. presidential election has set the stage for major changes in the housing industry. With President Donald Trump returning to office, we’re entering a period of shifting federal policies that will impact everything from mortgage rates and housing affordability to home construction and rental market trends.
Unlike the Biden administration, which focused on government-backed affordable housing programs, Trump’s policies emphasize deregulation, tax incentives, and private-sector-driven solutions. These changes will influence how property owners, investors, and renters navigate the market in 2025 and beyond.
Understanding these shifts is essential for anyone in real estate, whether they own rental properties, invest in housing, or are looking to buy a home.
1. Mortgage Rates and Homeownership
One of the most significant ways the 2024 election results will impact the U.S. housing market is through changes in mortgage rates. Mortgage rates determine how expensive it is to finance a home, directly affecting both home prices and affordability.
President-elect Donald Trump has promised to reduce mortgage rates as part of his broader economic policy. His approach includes:
Fighting Inflation
Trump has argued that high mortgage rates directly result from high inflation. He plans to combat inflation by reducing government spending, lowering energy costs, and increasing U.S. oil production. If successful, lower inflation could lead to a decline in interest rates, including mortgage rates.
Easing Banking Regulations
The Trump administration is expected to roll back certain financial regulations, particularly those imposed after the 2008 housing crisis. This could make it easier for lenders to approve mortgages, potentially increasing access to home loans for buyers.
Opening Federal Land for Housing Development
By increasing the availability of land for home construction, Trump aims to boost housing supply and reduce competition, which could help stabilize or lower home prices over time.
Important Note: These policies won’t immediately result in lower mortgage rates. The process depends on how quickly inflation is controlled and how the financial markets react to Trump’s economic strategy.
2. Housing Supply and Construction Industry Changes
For years, the U.S. housing market has struggled with a persistent supply shortage, driving up home prices, rental costs, and affordability challenges. A lack of available homes has made it difficult for first-time buyers and renters to find reasonably priced housing.
Here’s a detailed breakdown of how new policies may impact the construction industry, housing supply, and overall affordability in 2025:
Cutting Red Tape: Will Deregulation Speed Up Construction?
One of Trump’s primary housing policies is eliminating costly regulations slowing construction projects.
Developers and builders often face strict zoning laws, lengthy approval processes, and environmental regulations that delay new housing developments and increase construction costs. His administration aims to remove unnecessary building restrictions to make it easier and faster to construct new homes, particularly in high-demand areas. Some potential impacts of it are:
- Faster approval times for single-family homes and multi-unit developments.
- Lower compliance costs for construction companies could lead to lower housing prices.
- Increased development in areas where strict zoning laws previously limited housing expansion.
Potential Risks: If environmental and safety regulations are removed too aggressively, poor-quality housing or oversupply in certain areas could become a concern.
Expanding Home Construction: Will Opening Federal Land Help?
Trump’s administration is also expected to increase the housing supply by opening federal land for development. A significant portion of land in the U.S. is federally owned, particularly in western states like Nevada (80.1%), Utah (63.1%), and Idaho (61.9%). Strict regulations and environmental protections often prevent private developers from building on these lands.
President Trump proposes to make more federal land available for residential and commercial housing construction and reduce restrictions on developers who want to build new housing projects on federally owned land.
If implemented, this policy could dramatically increase the number of homes built, especially in states with limited available land for development. More large-scale housing construction projects could help stabilize home prices and improve affordability.
Possible Drawbacks: This proposal is challenged and opposed by environmental groups and some local governments, which worry about its long-term impact on natural resources and urban sprawl.
3. Immigration Policies and the Labor Market
According to 2023 data, 28.6% of construction workers in the U.S. are immigrants. They help mitigate labor shortages, lower housing costs, and allow builders to complete projects faster and more efficiently. However, Trump proposed increasing the deportations of undocumented immigrants.
Fewer Workers = Higher Construction Costs
If the supply of workers decreases due to mass deportations or visa restrictions, labor costs will increase, forcing developers to raise home prices. This could slow down home construction, worsen the housing shortage, and make affordability issues even more severe.
Housing Demand and Immigration
Trump has argued that reducing undocumented immigration will lower housing costs by decreasing rental property and home demand. While this might slightly reduce competition for housing in certain cities, the effect would likely be small compared to the larger issue of housing supply shortages.
Bottom Line: If construction projects slow down due to worker shortages, the housing supply will remain low, increasing prices instead of making homes more affordable.
4. Tax Incentives and Real Estate Investment
One key aspect of Trump’s housing policy is using tax incentives to boost homeownership, encourage private investment, and stimulate construction. By adjusting federal tax credits, deductions, and local tax policies, his administration hopes to increase the housing supply, lower costs, and make real estate investment more profitable.
Tax Incentives for First-Time Homebuyers
Trump has proposed new tax credits and incentives for first-time homebuyers to make homeownership more accessible.
Many millennials and Gen Z buyers have struggled to afford homes due to rising prices, high mortgage rates, and down payment challenges. The government could help lower the cost burden by offering tax credits, making it easier for renters to transition into homeownership.
Below are the potential tax breaks for homebuyers:
- A federal tax credit for first-time homebuyers, similar to the $7,500 tax credit offered after the 2008 housing crisis.
- Deductions for mortgage interest to make homeownership more financially viable.
- Possible state-level tax incentives to encourage home purchases in areas with lower demand.
Potential Drawback: Home prices could spike if demand increases too quickly, offsetting affordability improvements.
Tax Breaks for Property Developers and Construction Companies
To address housing shortages, Trump’s administration may offer tax incentives to developers and construction firms that build new housing, especially in underserved areas. Some possible tax benefits for developers are:
- Tax credits for large-scale housing construction projects, particularly in affordable housing sectors.
- Reduced corporate tax rates for construction companies that develop multi-family housing.
- Depreciation incentives allow property owners to write off construction costs faster, making new builds more profitable.
Effects on the Housing Market: If tax breaks mainly benefit luxury developments, affordability challenges may persist.
Local Tax Policies and Federal Tax Adjustments
Trump’s administration is expected to work with state and local governments to adjust tax policies that affect real estate.
Zoning Reform Incentives
States that ease zoning restrictions (allowing for more housing development) could receive federal funding or tax benefits. This could lead to more multi-family housing developments and increasing rental inventory.
Lowering Local Property Taxes for New Developments
Some areas may lower property tax rates on newly built housing to attract investors and developers. This could encourage more single-family and rental property construction, particularly in suburban areas.
Potential Federal Capital Gains Tax Cuts
Trump has historically supported lower capital gains taxes, which could benefit real estate investors selling properties. Reducing capital gains taxes could make real estate investment more lucrative, increasing property sales and reinvestment.
What This Means for Utah’s Rental Housing Market
For property owners and investors in Utah, these federal policy changes, alongside 2024's key economic trends, could have both positive and negative effects, such as:
- More home construction projects could increase the housing supply, stabilizing rental prices.
- Deregulation may lower construction costs, making it easier for developers to build in high-demand areas.
- Potential tax incentives could create new opportunities for investors to expand their rental portfolios.
- However, fewer government subsidies may increase rental competition, affecting tenants who rely on assistance programs.
Final Thoughts: Preparing for the Changes Ahead
The presidential election's impacts on housing policy issues will profoundly reshape the housing market. While Trump’s administration is expected to focus on deregulation, tax incentives, and market-driven solutions, the long-term effects will depend on Congress, economic trends, and labor market conditions.
Staying informed and adapting to these policy changes will be key to navigating the evolving real estate landscape for landlords, investors, and renters. Wolfnest remains committed to helping Utah property owners make the most of these shifts, ensuring smart investment strategies and strong portfolio growth in the years ahead.
Would you like to discuss how these policy changes could affect your rental properties? Contact our team of experts today to stay ahead of the curve in the Utah housing market.
Related Articles
Investing in Rental Properties in 2025: Opportunities and Challenges
The Impact of Inflation on Renters: Strategies for Managing Costs
Salt Lake City Rental Market Overview: Trends and Challenges for 2025
