By Phil Ganz
Edited by Ryan Skerritt
Donald Trump’s return to the White House could bring significant changes to the housing market.
His proposed policies may impact mortgage rates, home construction, and affordability.
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Here’s how his agenda could shape the future for homebuyers and renters:
Florida Housing Market Overview
Today’s housing market remains tough for both buyers and renters, with affordability issues especially severe in Florida.
The national median home price exceeds $400,000, while Florida’s median home price has risen to $403,500—up 60% over five years.
Renters also face significant pressure: the national average rent is about $2,000 per month, while in Florida, only 25 affordable rentals are available for every 100 extremely low-income renters, leaving 82% of these renters severely cost-burdened and paying more than half their income on housing.
Florida’s market has seen a slight increase in the number of homes for sale, up 30.8% year-over-year, and longer time on the market, suggesting a potential shift.
Buyers facing high prices can explore state assistance programs or consider markets with slower price growth, while renters may need to seek relief programs as the shortage of affordable housing continues to drive up costs.
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Trump’s Proposed Policies and Their Potential Impact on Homebuyers
Trump’s proposed housing policies could bring new opportunities for homebuyers by increasing affordability and boosting the economy.
With plans to lower costs, encourage new construction, and support lower mortgage rates, these changes are expected to create a favorable market for those looking to purchase a home.
Mass Deportation and Its Positive Impact on Housing Demand
Trump’s plan to reduce immigration levels could help ease competition in the housing market by lowering the number of renters and buyers, especially in high-demand areas.
This may lead to more housing availability at stable prices, creating new opportunities for families to enter the market and secure a home of their own.
Impact
Lowering immigration levels could increase housing availability, potentially stabilizing prices and saving buyers in high-demand areas up to 10%, or about $40,000 on a typical $400,000 home.
Cutting Regulations to Make New Homes More Affordable
Trump’s commitment to reducing housing regulations aims to bring down the cost of building new homes, potentially by as much as 30%.
This approach could make it easier and faster for builders to develop housing, giving buyers more choices in affordable, high-quality homes.
Impact
Reducing housing regulations could cut new home costs by up to 7.4%, saving buyers around $29,600 on a $400,000 home and improving access to affordable housing options.
Efforts to Make Mortgage Rates More Affordable for Buyers
Trump’s focus on lowering mortgage rates shows a commitment to making monthly payments more manageable for buyers.
His prior term saw favorable mortgage rates, and the goal now is to create conditions for similarly accessible rates.
Impact
Lower mortgage rates could save buyers approximately $1,200 annually on a $400,000 home if rates decrease by just 0.5%, making monthly payments more manageable and expanding financing options
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If You’re Struggling to Afford a Home, FHA, VA, and Hometown Heroes Loans Can Help Right Now
For buyers facing affordability issues, these programs offer options to secure a home with lower costs:
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FHA Loans: Ideal for first-time buyers, FHA loans allow low down payments and have flexible credit requirements. They help make homeownership accessible for those with limited funds or lower credit scores.
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VA Loans: Available to veterans and active-duty military members, VA loans require no down payment and offer competitive interest rates, making homeownership more affordable for those who have served.
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Hometown Heroes Loans: This program provides special rates and benefits for Florida workers like $35,000 in down payment assistance, easing the path to homeownership for those who serve their communities.
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What This Means for the Florida Housing Market
Trump’s proposed housing policies could create new opportunities for Florida’s housing market, with plans to cut regulations, streamline building, and reduce housing demand.
These changes may lower costs, bringing more affordable homes to market and balancing supply.
By reducing regulatory expenses, builders could lower prices on new homes by about $29,600 on a $400,000 home, while even a slight rate drop from 7% to 6.5% could save buyers over $1,200 a year.
Together, these policies could save Florida homebuyers an average of $30,800, making homeownership more accessible across the state.
With over 50 years of mortgage industry experience, we are here to help you achieve the American dream of owning a home. We strive to provide the best education before, during, and after you buy a home. Our advice is based on experience with Phil Ganz and Team closing over One billion dollars and helping countless families.
About Author - Phil Ganz
Phil Ganz has over 20+ years of experience in the residential financing space. With over a billion dollars of funded loans, Phil helps homebuyers configure the perfect mortgage plan. Whether it's your first home, a complex multiple-property purchase, or anything in between, Phil has the experience to help you achieve your goals.
About Editor - Ryan Skerritt
Ryan Skerritt has over 10+ years of experience in the residential financing space. With over two hundred and fifty million of funded loan volume, Ryan has the skill set to help any homebuyer configure the perfect mortgage plan.
