President Trump spoke of his plans that could affect the real estate industry in front of nearly 2,000 agents at the National Association of Realtors midyear meeting held in Washington, DC.
"President Donald Trump wants to make real estate great again."
During the hour long address, our president put the environmental and other government regulations that impede building on blast. He also spoke highly of his administration's opportunity zones (which encourages investment in struggling communities, and he preached his plans to repair the nation's housing finance system.
If Trump can make this happen, that will mean more homes, better prices, and even more options for those looking to buy a home. The prices of homes going down could also lower the average rent cost in the United States too. So, this could be a massive win for both renters and buyers alike.
Trump has nearly 9,000 opportunity zones already in place during his tenure in office, which was established by the Tax Cuts and Jobs Act of 2017. The opportunity zone program helps create long-term real estate and business investments in low-income neighborhoods. The people who give their money into these communities can get big tax breaks and deferrals.
This could help the state of Florida out a lot because of it's harsh government regulations. A study done by Tallahassee-based James Madison Institute reviewed local impact fees and land-use regulations on workforce housing in Florida. The study found that impact fees can increase the cost of homes for low-income areas and push owners out of the market. The study also found that this places additional burdens on builders and developers alike.
Florida's population saw an increase of 284,566 people from 2010 to 2016 (U.S. Census Bureau). More people means the state needs more land to build houses on and to lower it's tight restricts that make it hard for people to become homeowners. The spike of the population doesn't help renters either, and rent has been rising in Florida with mortgages alike. So, there is no winning in this situation.
However, if President Trump can get these regulation restraints loosened, we could see drops in prices and more affordable homes for first-time home buyers like the younger millennial's we brought up in a recent blog. The looser regulations could also mean better living for families, snowbirds, and renters alike.