Reflecting on Trump’s victory – How will the real estate industry react?

Election Promises or New Approaches

During the 2024 U.S. presidential election campaign, President-elect Donald Trump made bold claims about business, the markets and real estate. By pledging to reduce inflation and lower mortgage rates, he gained traction in some of the country’s most challenging housing markets, shifting support by 4.5% in the hardest 10% of housing markets toward the Republican camp.

Yet, experts remain skeptical that his pledges will be sufficient to revive the struggling sector within the urgent timeframe required. Fresh, innovative strategies are essential to inject much-needed energy back into the U.S housing market.

Current State of the Housing Sector

Prior to the November 2024 presidential election, Grant Cardone, CEO of Cardone Capital and a prominent real estate investor, declared the real estate sector as ‘worse than 2007-08’ due to crippling interest rates. Others have called the market ‘unhealthy’, with some Americans holding pre-pandemic mortgages rates at 3%, while current rates are at 6%.

In short, the U.S. housing market is in a complex, challenging state.

This reality placed the housing market front of mind for many voters – it was the second most common economic concern for American families. Now that the election outcome has been confirmed, it’s important to consider the impact Trump’s victory may have on the housing and real estate sectors.

Trump’s Promises for a Brighter Future

In the lead up the election, key media sources noted that Trump’s proposed tariffs on imported goods could significantly impact interest rates and could, according to some observers, restrict economic growth. However, his promises to ‘cut the red tape’ and reduce regulations on housing construction could offer a boost to the market, sending mixed messages to the industry. He has also pledged to lower inflation rates and open up “limited portions” of federal land for homebuilding.

Following the recent election, Chen Zhao, Head of Economic Research at real estate analytics company Redfin's, stated that the sector is in ‘wait-and-see mode’, assessing which of Trump’s economic policies will be prioritized and how they may collectively impact the housing market. However, with Trump’s inauguration set for January 20 2025, there remains a substantial period before any tangible policy change will take effect, demonstrating the time-constraints of these plans.

The Innovators Driving Change

If the U.S. real estate sector is to see fast-acting changes, more time and investment need to go towards some of the industry’s most innovative platforms.

American Dream TV exemplifies the shift happening in real estate media. Founded by Craig Sewing, the platform spotlights local communities and real estate professionals, putting them at the center of its programming. With distribution through popular platforms like Amazon Prime Video, it provides audiences nationwide with engaging insights into the unique character and appeal of communities across the U.S., making real estate more accessible and approachable.

Comprehensive, up-to-date platforms are also proving to be valuable tools for prospective homebuyers. Companies such as Real Estate Lab are leading the charge in this space, offering a suite of tools for multifamily real estate investment, focusing primarily on underwriting, acquisitions, and asset management. This technology accelerates the investment process, enabling investors to quickly identify potential opportunities and risks, increasing deal flow and investment precision.

AI-driven technology is also making inroads, driven by platforms like BidSight. This AI-powered cost management platform supports real estate developers by automating the process of invoice collection and cost allocation, integrating seamlessly with existing accounting systems. The platform’s AI capabilities help identify cost efficiencies, expediting change orders, and managing multiple budget scenarios, allowing developers to make data-driven decisions and manage budgets more effectively.

Looking Ahead

Real estate and housing markets were among the discussed topics in the recent U.S. presidential election. With Trump set to move to the White House for a second term, all eyes are on the incoming President to implement what he promised on the campaign trail.

However, the sector and American families can’t wait for the Trump administration to act – change is needed now. The focus must turn to innovators who are already reshaping access to real estate in fresh, accessible ways while awaiting action from the incoming president.

This article does not necessarily reflect the opinions of the editors or management of EconoTimes.