THE American real estate market has been a major issue for voters in the 2024 presidential election, as low inventory continues to drive home prices to new highs. Sky-high home prices, coupled with high mortgage rates in recent years, have made the American dream out of reach for a growing number of Americans amid a prolonged affordability crisis.

Vice President Harris and President-elect Trump have both pledged to address America’s housing problems if they win the White House, and with Trump emerges victorious This week, the real estate industry takes a fresh look at the potential impact of its policies on the market.

A pre-election analysis by Realtor.com gave mixed opinions on the two candidates’ plans, welcoming some of their proposals while warning of the potentially negative impacts of others.

The online real estate company praised Trump’s plans to boost housing supply by targeting housing development regulations, which he called “unnecessary” and “killer.” The report said reduction regulations could make it easier for builders to add homes at lower prices, noting that the cumulative cost of regulations at the federal, state and local levels adds more than $90,000 to the cost of a new home.

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“Zoning rules, building codes and labor standards are just some of the regulations builders must deal with during the process of developing land and building a home,” said Danielle Hale, Realtor.com chief economist. RENARD Company.

Homes are seen under construction in Sacramento, California, July 3, 2023. (David Paul Morris/Bloomberg via Getty Images / Getty Images)

“Builders and developers pay fees directly to the government, incur costs to study construction impacts and comply with various rules, and also face delays while waiting for approvals,” Hale explained. “While many of these rules are undoubtedly well-intentioned, they add up to costs that are ultimately borne by the consumer.”

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The analysis also indicates that Trump’s pledge to reduce inflation and reduce mortgage rates would benefit the property market as it would revive the stagnant market, knowing that lower rates would unlock homeowners who currently find the move untenable because their current mortgage rate is well below the market rate, and also improve the outlook for buyers.

However, Realtor.com’s analysis took issue with Trump’s plans to raise tariffs and cut immigration, arguing that these proposals could have unintended consequences for the real estate market.

Republicans have argued that the rise in illegal immigration to the United States has helped drive up housing costs because it has increased demand, but Realtor.com says the decline in immigration could backfire. against the real estate market.

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In the short term, the report said, reduced immigration could “severely harm” the labor supply needed to build new housing. The analysis references data from the National Association of Home Builders (NAHB) indicating that up to one-third of residential construction jobs are made up of foreign-born workers.

Reducing immigration could also hurt demand in the housing market in the long term, the report warns, because reducing immigration could lead to negative population growth in the United States, since the total fertility rate nationally in the United States stands at 1.67, well below the population retention rate of 2.1.

Grant Cardone, CEO and real estate investor at Cardone Capital, explains why the economy is at the top of voters’ minds and why Trump will boost U.S. markets.

“In other words,” it reads, “without immigration to fill the population replacement gap, the country would likely experience a decline in overall housing demand.”

While some real estate experts After brushing aside concerns about Trump’s plan to raise tariffs, Realtor.com said increasing those taxes on imported goods could drive up housing costs.

“A significant portion of construction materials are imported, including cement, steel and wood,” Hale said. “There are already tariffs on these products, and it is unclear to what extent additional taxes would be imposed. What is more certain is that additional tariffs will likely result in higher prices for American consumers.”

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