What will Trump's housing initiative do?

The administration's housing plan has a few moving parts, so here's what it actually means in plain terms. The big picture is that Trump has pushed several housing-related initiatives aimed at making it cheaper to buy and build homes. Whether they'll deliver depends on a lot of factors that are still playing out. On mortgage rates, the administration directed Fannie Mae and Freddie Mac to purchase $200 billion in mortgage-backed securities to help push rates down. Rates have come down slightly but are still hovering in the mid-6 percent range. The president doesn't directly control mortgage rates, but this kind of move can nudge them lower over time. If you're a buyer, even a half-point drop on a 30-year mortgage saves you real money every month. On new construction, a recent executive order aims to cut regulatory red tape that adds cost and delay to building homes. Things like streamlining permits, reducing environmental review burdens, and pushing back on local building mandates that can add $30K or more to the cost of a new home. The idea is that if it's cheaper and faster to build, more homes get built and prices stabilize. That's a long game though, not something you'll see results from this year. On institutional investors, Trump signed an order aimed at preventing large corporate investors from buying up single-family homes. The goal is to keep more inventory available for regular families instead of having Wall Street firms scoop up neighborhoods and turn them into rentals. The details are still being worked out and it would need Congressional action to have real teeth. On home values, if you already own a home, none of this is likely to crash your value. The goal is to slow price growth and improve affordability, not tank the market. More inventory and lower rates would mean a healthier market with more transactions, which is good for both buyers and sellers. If you're looking to buy, the combination of lower rates and more supply could improve your purchasing power over the next year or two, but don't expect dramatic overnight changes. The honest answer is that housing policy moves slowly and most economists agree that the biggest affordability gains will come from simply building more homes, which takes years regardless of who's in office. Barrett Henry Broker Associate | REALTOR® RE/MAX Collective · The NOW Team Tampa Bay, Florida nowtb.com

What will Trump’s housing initiative do, and how could it affect you? Short answer: the goal is to make housing more affordable by making it easier to build homes and easier to get financing. In reality, some parts could help buyers, but they may also push prices up depending on how the market reacts. Here’s a simple breakdown of what’s actually being proposed: Make it easier to build more homes A big focus is cutting regulations and speeding up construction: Less red tape for builders Faster permits Fewer environmental restrictions The idea is simple: more homes = lower prices. Reality: this helps over time, not overnight. Building supply takes years. Lower borrowing costs and expand loan options There are efforts to: Lower mortgage rates (through government intervention) Make it easier for smaller banks to lend Introduce things like longer-term mortgages (even 50-year options) What this means: Buyers may afford more house monthly More people can qualify But there’s a catch: more buyers = more demand. Limit big investors from buying houses Another piece is restricting large Wall Street-type investors from buying single-family homes: Prioritize regular buyers over corporations Reduce competition in some markets Reality: this sounds big, but experts say investors are a small part of the market in many areas, especially in New England. Help buyers come up with down payments Some proposals include: Using retirement funds (like 401k) for down payments Expanding access to financing This makes it easier to enter the market, but again, increases demand. The big picture (this is what actually matters) There are two forces at play: Supply side → build more homes (pushes prices down over time) Demand side → make it easier to buy (pushes prices up short term) If demand increases faster than supply, prices can actually rise, not fall. What this means for you as a homeowner If you already own a home: Likely neutral to positive More buyers entering the market can support or increase home values If you’re trying to buy: It may become easier to qualify But you could face more competition Local reality in places like Berlin, NH In smaller markets like Berlin and Coos County: The biggest issue isn’t Wall Street investors, it’s limited inventory If more buyers enter the market without new construction, prices tend to rise New construction is slower here, so supply-side benefits may lag Bottom line: This isn’t a single policy, it’s a mix of ideas trying to do two things at once, make homes cheaper and easier to buy. In the short term, it may actually push prices up by bringing more buyers into the market. Longer term, if more homes get built, it could help stabilize or lower prices. Who it affects most: First-time buyers → easier entry, but more competition Sellers → potentially stronger demand Investors → more restrictions

I just wrote a blog yesteryda about the new law that is being passed. I think it is very real estate friendly and should help real estate, but in the longer run. The law will pass and enacted in a few months, then applied and will take a few years to benefit the average buyer or seller. Hopefully the facts below will show you and explain how and you can make up your own mind if it is positive or not. https://moehassan.nexthomemilestone.com/blog/49/BREAKING+NEWS%3A+Tax+Reform+Bill+Clears+House+With+Key+Real+Estate+Provisions

There is actually a lot happening right now so let me break it down simply. WHAT IS THE GOAL? Two things. Make it cheaper to borrow money to buy a home. And make it easier and faster to build new homes. Both are aimed at making housing more affordable for everyday Americans. WHAT HAS ACTUALLY BEEN ANNOUNCED? Trump directed Fannie Mae and Freddie Mac to purchase $200 billion in mortgage-backed securities to drive down borrowing costs, and took executive action to prohibit large institutional investors from buying single-family homes, with the goal of keeping those properties available for everyday families. He also signed an executive order to eliminate unnecessary regulatory burdens that delay housing construction and increase costs. WILL HOMES GET CHEAPER TO BUY? Possibly, but not dramatically or overnight. Experts are not expecting a sharp nationwide drop in prices. The forecast is roughly half a percent increase, which is essentially flat. The real long term solution is simply building more homes, and the country is currently behind on that. WILL YOUR HOME VALUE BE AFFECTED? If you already own, the near term outlook is stable. Lower mortgage rates bring more buyers into the market, which supports home values rather than hurting them. Existing home sales recently rose to their strongest pace in three years, with income growth outpacing home price gains. Source: https://www.whitehouse.gov/articles/2026/01/as-president-trump-tackles-housing-affordability-progress-emerges-and-more-relief-is-on-the-horizon/ THE ONE WILDCARD Tariffs on building materials like lumber and steel could cancel out some of the benefits of deregulation. If it still costs a fortune to build a new home, those savings never reach the buyer. BOTTOM LINE Buyers may benefit from gradually lower mortgage rates. Current homeowners are unlikely to see their values drop from any of this in the near term. Your local market will always matter more than any national policy.

Hi! I just wrote a blog post on this very subject. Here is how Trumps Big Beautiful Bill will empact housing...https://www.jaydeesheppard.com/property-taxes-and-trumps-one-big-beautiful-bill-explained/

The Good: Tax advantages for certain buyers. The bill includes a temporary state and local tax (SALT) limit of $40,000 starting in 2025, CNBC reported. This benefit begins to decrease when you have $500,000 or more of yearly income. As Newsweek noted, the new limit represents a steep increase from the previous limit and could mean thousands of dollars in savings for homeowners in high-tax states such as New York, New Jersey, Massachusetts and Illinois. This in turn could “create a real estate boom again,” according to Ed Fernandez, CEO of exchange investment company 1031 Crowdfunding. Investor incentives. The bill’s provisions will “likely stimulate” investor activity in Opportunity Zones, according to Salim Chraibi, CEO of Florida-based real estate company Bluenest Development. This could benefit home sellers in high-demand areas. However, it might also drive up prices in certain markets unless “guardrails are in place to preserve affordability and ownership access for local residents,” Chraibi told GOBankingRates in an email. Depreciation bonus. Abe Schlisselfeld, senior managing director and national real estate industry leader at CBIZ, told Newsweek that one of the most attractive parts of the bill is the return of 100% bonus depreciation. “This would allow you to fully deduct the cost of qualifying renovations, property improvements and certain building components immediately, instead of spreading the deductions out over several years,” Schlisselfeld said. “This could be a game changer for your 2025 renovation or development plans.” The Bad: It does not address affordability issues. The median sales price of homes in the United States rose to a new record high of $435,300 in June, according to the National Association of Realtors. Steep prices continue to be a drag on housing in many markets, but the Trump bill “lacks direct support for affordable homeownership,” Chraibi said. “Without targeted policies — such as down-payment assistance or incentives for developing workforce-focused, for-purchase homes — working families remain locked out of the equity and stability that come with homeownership.” Clean energy credits will end. Certain provisions of the bill terminate the Energy Efficient Home Improvement Credit, the Residential Clean Energy Credit, the New Energy Efficient Home Credit, and deductions for energy-efficient commercial buildings. Ending these credits could stall construction and lead to higher home prices, Newsweek reported. It cited an analysis from Groundwork Collaborative, a progressive advocacy group, which found that the New Energy Efficient Home Credit incentivized the construction of energy efficient homes and was “estimated to spur the construction of 3 million homes in the next few years.” With those incentives no longer in place, fewer homes will be built, inventory will remain tight and new home prices will keep rising. It doesn’t help middle-class families. According to Chraibi, the “greatest barrier” for middle-income, working households isn’t just monthly payments — it’s it’s the upfront cost and lack of entry-level homes on the market. “Without targeted policies providing down-payment assistance or incentives for building for-purchase workforce housing, millions remain locked out of homeownership’s economic and stability benefits,” he said.