4 ways the Trump government will impact the real estate market

4 ways the Trump government will impact the real estate market

Many people are talking about the way the real estate market is going to be affected by the Trump administration. This is because the policy platforms that he has been saying during his campaign were vague. These are the impacts we might see.

real-estate-6

1. There will be a short-term boost in the economy due to tax cuts and government spending for upgrading the infrastructure of the country. Due to faster GDP growth, inflation may be high. So, the interest rates will increase. If the faster GDP growth sustains then, the inflation can be manageable. There will be more jobs, and so more revenue will come in. If this is only a short-term boost, then the interest rate will climb higher resulting in a budget deficit. So, the generation will be immersed under more debt.

2. The trade deficit will increase. The growing economy will allow the people of America to use more foreign products. If tariffs are increased to lower the trade deficit, then the consumers will face higher prices. If the export and import declines then there will be recession and job cuts.

3. There will be fewer government regulations on the stock market. But there will be restrictive international trade policies. There will be uncertainty in the financial market that will hold back the corporate investment spending decisions.

4. There will be a less regulatory burden on small banks that are good sources of construction and land development loans. This means that small banks will make more loan and increase the home building activity. It will help to overcome the present house shortage situation.

So, we can expect both positive and negative consequences of the policies that the Trump administration will set up. Trump is very experienced in the construction industry. We expect some good things from his government.

infographic