This is why the Trump presidency is keeping these cops up at night
Rising costs for building materials were among the top concerns identified in the survey. About 60% of respondents are concerned about the rising costs of building a home, with 30% expecting significant increases and another 30% expecting moderate increases. Some respondents thought differently; 24% expected no changes and 16% expected cost reductions.
Trump’s current tariff proposals are a likely factor in this line of thinking. The president-elect plans to impose a 10 to 20 percent tariff on all foreign imports, in addition to even higher tariffs on goods imported from China. Industry analysts note that consumers will ultimately bear the brunt of such moves.
Coinciding with concerns about tariffs, 51% of real estate agents surveyed believe Trump’s policies will turn foreign investors away from U.S. real estate markets. Is this a new concern? Perhaps not, as this follows a pre-existing decline in international investment. A report of the National Association of Real Estate Agents (NAR) found that the volume of foreign investment in existing homes in the US fell 21.2% in the year ending March 2024. The 54,300 purchases by foreign buyers were the fewest since NAR began tracking the metric in 2009.
A shortage of skilled workers was also among the problems real estate agents feared. According to the survey, 46% believe there will be a shortage of skilled workers. These concerns could stem from Trump’s plan to “close the border” and deport millions of immigrants — many of whom the U.S. construction industry believes are employed in the construction industry. National Association of Home Builders (NAHB).
Interestingly, 34% of respondents believe there will be minimal impact on skilled labor. Another 20% say that “the pool of skilled workers will increase because workers from different regions will be motivated.”
Affordable housing issues are a concern for many respondents, as 44% predict a decline in the number of affordable housing units – more than in other real estate sectors such as commercial, luxury and mid-range housing. Most respondents attribute this to rising construction costs and reduced government support. But REsimpli also cites current market conditions – including high mortgage rates and home prices – as contributing factors.
According to respondents, affordable financing options could also take a hit. REsimpli explained that “28.5% of people expect that obtaining financing will become much more difficult, especially for start-ups, and have a negative view of the privatization of Fannie Mae And Freddie Mac.”
“The U.S. housing market is at a critical juncture, with affordability concerns at historic levels and mortgage rates creating significant barriers to entry,” the report said. It then cited NAR data showing that first-time homebuyers accounted for just 24% of all home purchases between July 2023 and June 2024, the lowest percentage since 1981.
The presidential inauguration is scheduled for Monday, January 20.
