What effect the Trump administration will have on the housing market
At a meeting of the National Association of Home Builders in August, Trump said that “there’s no industry, other than probably the energy industry, that is more overregulated than the housing industry.” However, changing those regulations may be beyond his scope.
.. “He could try to use his power to ease it, but a lot of the problems are at the state and local levels,” Goodman said.
.. Goodman said the two biggest issues the housing market faces are supply constraints and credit availability.
.. But Trump’s stance on immigration could have a detrimental effect on housing supply.
“Immigration plays a big part in the labor force for construction,” Smoke said. “It’s one of the constraints we have in new construction.”
.. Something to watch under Trump could be what happens to Fannie Mae and Freddie Mac. Reform efforts have stalled the past several years. But hedge-fund billionaire John Paulson, who is part of the president-elect’s economic policy team, could push for action. Paulson bought shares of Fannie and Freddie in the hope of cashing in when they regained their independence. Since being placed under government control, the mortgage-backers have sent nearly all their profits to the U.S. Treasury, not investors.
“Paulson cares passionately about this, given his positions,” Goodman said.