Forbes Explains How Home Values Could Change Under President-Elect Trump
In July 2016, the U.S. Census Bureau released a report showing that American homeownership rates are the lowest on record since 1965. Then-candidate Donald Trump suggested it was another indicator that the economy is failing many consumers. Since the issue seems to be on the President-elect’s radar, Forbes investigated what a Trump Administration may mean for American home values.
Experts agree that consumer confidence often tracks along party lines after elections. This means that demand for – and values of – homes in states that voted for Trump may rise in the near-term. Likewise, uncertainty and concern in blue states may cause a short-term drop in demand and in property values.
Mr. Trump has asserted that building American infrastructure will be one of his greatest goals in the first one hundred days of his administration. If his $550 billion plan translates into jobs and increased wages, we are likely to see greater demand for homes across the country. This means more competition and higher sale prices for sellers.
Conversely, if a Trump administration’s controversial immigration policies scare immigrants away from long-term property investment, both homeownership rates and home values will likely drop. Over the past decade, Latino buyers have been America’s fastest-growing demographic of homeowners.
What remains clear is that we are likely to live in uncertain times for the next several months, as the President-elect’s agenda continues to develop.
Image via Flickr/vivalarson