After Trump’s Win, 1 in 5 Republicans Are More Likely To Purchase a Home in 2025
Written by
Gabrielle Olya
Edited by
Renee Ross
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The election of former President Donald Trump is instilling more confidence in certain sectors of the homebuying market going into 2025. A new Realtor.com survey of buyers and sellers found that roughly 1 in 5 Republicans (18%) are more likely to purchase a home as a result of the election.
In addition, about 1 in 5 men (18%) are more likely to purchase a home as a result of the election outcome (compared with 10% of women) and 22% of Gen Z respondents said they were more likely to purchase a home in response to the outcome of the election– more than any other generation.
Respondents who said they are now more likely to purchase a home cited reasons including optimism about the economy (22%), trust in the new administration (19%) and expectations the housing market will improve (17%).
Is this optimism about the housing market warranted? Here’s a closer look at what the market could look like under Trump.
Realistically, a Trump Presidency Could Have Both Positive and Negative Impacts on the Housing Market
While Republicans, men and Gen Z seem to be overall enthusiastic about the potential effects of a Trump presidency on the housing market, it’s too soon to tell if this enthusiasm is warranted.
“The specifics of Trump’s housing policies remain to be seen, and the impact will depend on what is ultimately passed,” said Hannah Jones, senior economic research analyst at Realtor.com. “However, we saw a mix of proposals during his campaign, some of which would be helpful for the housing market and some that may be more harmful.”
Jones noted that certain policies Trump has spoken about could boost construction of new homes, while others could hinder it.
“The president-elect’s focus on bolstering housing supply by re-tooling current housing regulation would be good for builders by enabling more construction,” she said. “However, the mass deportation of migrants and stricter limits on immigration could undercut the impact by reducing labor supply. Up to a third of those employed in residential construction were not born in the U.S.”
Tariffs could also affect the cost of construction, which in turn, could lead to higher home prices.
“President-elect Trump has spoken extensively about enacting tariffs, which raise the cost of consumer goods and services, as well as input goods, such as those necessary for construction,” Jones said.
Will 2025 Be a Good Year for Buyers?
Those planning to buy a home in 2025 will likely encounter a mixed bag of circumstances that could both help and hurt them.
“Taken as a whole, Trump’s proposed policies could raise inflation, which would keep interest rates — including mortgage rates — higher for longer,” Jones said. “Housing affordability will continue to suffer if mortgage rates remain elevated.
“However, buyers may find favorable opportunities as building home supply and waning demand means more flexible sellers,” she continued. “All else equal, more homes for sale takes pressure off of home prices and gives buyers more options.”
Editor’s note on political coverage: GOBankingRates is nonpartisan and strives to cover all aspects of the economy objectively and present balanced reports on politically focused finance stories. You can find more coverage of this topic on GOBankingRates.com.
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