The president-elect’s defense and economic policies could impact housing
“Uncertainty” and “Donald Trump” are linked together in many more ways than one. It’s no surprise that when it comes to the housing market, it’s unclear what the new Republican president will do to make a difference.
The Washington Post spoke with housing industry researchers and economists to get a feel of what lies ahead. Experts say that there may be more volatility in the financial market, and that it’s possible that a December rate hike for the Fed may now be off the table. When Trump takes over, he may increase defense and infrastructure spending, which will lead to household formation, and he may try to roll back government regulations on home building.
But then again, a new president, even one as unpredictable as Trump, may not change anything.
In the past, most changes in administrations have had little effect on the housing market. … Jonathan Smoke, chief economist at Realtor.com, analyzed five presidential elections that took place in the past 20 years and found that outside a three-mile radius of Capitol Hill they had no consistent impact on home sales or prices. Other factors such as economic booms and busts had a greater influence.