Analysts weigh in on how regulations could change under incoming president
The US housing market could see significant changes in 2025 as experts look at the potential impact of President-elect Donald Trump’s proposed policies. A forecast from realtor.com highlights initiatives like easing regulations and expanding federal land for homebuilding as key factors that could reshape market dynamics.
Currently, regulatory costs account for nearly 24% of a home’s price, or approximately $90,000 for an average US home, according to the National Association of Home Builders (NAHB). If Trump follows through on his campaign promises, this reduction in regulatory burden could increase the housing supply and improve affordability, according to the survey.
“President Trump will deliver on his promise to Make Housing Affordable Again by defeating historic inflation and reducing the mortgage rate,” Taylor Rogers, spokesperson for the Trump-Vance transition, told Newsweek.
He also emphasized additional measures, such as restricting mortgages for undocumented immigrants and opening federal land for large-scale housing developments with minimal taxes and regulations: “The cost of new homes will be cut in half, and President Trump will end the housing affordability crisis.”
However, the extent of the impact remains uncertain. For Danielle Hale, chief economist at realtor.com, “the size and direction of a ‘Trump bump’ will depend on what campaign proposals ultimately become policy and when.”
While some regulatory changes could be implemented quickly, Hale said broader policies, including tax reforms and extensive deregulation, would require cooperation across multiple levels of government.
Realtor.com’s forecast also predicts that 2025 could bring the most balanced housing market in nearly a decade. Home prices are expected to rise by 3.7%, while rents are projected to remain steady with a slight decrease of 0.1%. Mortgage rates could gradually decline over the year.
Single-family home construction is anticipated to grow by nearly 14%, reaching 1.1 million new homes, a milestone last achieved in 2006. Meanwhile, home sales are expected to grow by more than 1.5%, with months of supply—a key indicator of market balance—improving from 3.7 in 2024 to 4.1 in 2025.
“The new administration's policies have the potential to enhance or hamper the housing recovery, and the details will matter,” Hale said.
