With Donald Trump's return to the White House, there are likely to be some notable impacts on Utah's housing market. Here's what you need to know:

Table of Contents

• Potential Easing of Regulations

• Focus on Suburban Development

• Immigration Policies and Labor Market

• Federal Land Use

• Interest Rates and Affordability

• Looking Ahead

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Potential Easing of Regulations

Trump has proposed reducing regulations on homebuilders to boost housing supply. This could potentially lead to increased construction activity in Utah, helping to address our ongoing housing shortage. However, the specifics and local impacts remain to be seen. State legislation also plays a large role in housing regulations.

Focus on Suburban Development

The Trump administration is expected to encourage housing development in suburban areas where land is more affordable. For Utah, this could mean continued expansion in areas surrounding Salt Lake City, Provo, and other urban centers. For Utah County, think Eagle Mountain, outskirts of Lehi, Spanish Fork, and Santaquin.

Immigration Policies and Labor Market

Stricter immigration policies may affect the construction workforce in Utah. While this could potentially reduce housing demand, it may also lead to labor shortages in the building industry, complicating efforts to increase housing supply.

Federal Land Use

There's discussion about opening up federal lands for residential development. Given Utah's large proportion of federally-owned land (much of which is non-national/state park), this policy could have significant implications for Utah’s housing market, along with many other states in the west.

Interest Rates and Affordability

While the president doesn't directly control interest rates, Trump's economic policies may influence the Federal Reserve's decisions. Before the election, The Federal Reserve had already signaled several rate cuts over the coming months. Lower rates could make homeownership more accessible for many Utahns. But as stated by Selma Hepp, some expect interest rates to stay higher for longer.

Over the years, I’ve seen plenty of well-respected economists have differing opinions and are often wrong about their projections. To me… based off the Federal Reserve’s messaging, I would expect rates to come down as the job market softens. But balancing inflation with interest rates will continue to be a focus for the health of the overall economy, and we have yet to see what will occur in the coming months.

Looking Ahead

Remember, the housing market is influenced by many factors beyond presidential policies. Despite these potential changes, Utah's housing affordability issues are likely to continue in the near term. The state's rapid population growth and existing supply shortages mean housing will remain a key concern for many residents.

Even with a large housing shortage, Utah has a home ownership rate of 71.2%, which is about seven percentage points higher than the national average. The Federal Reserve found that the average homeowner’s net worth is almost 40x greater than the average renter household. This is a big deal! As your real estate agent, I want to help empower you to reach your real estate goals. Whether that be purchasing your first home, moving to your next, or adding to a portfolio of real estate investments. I'm here to help you make informed decisions about buying or selling in our dynamic Utah market. If you have any questions or need help making your next move, please don’t hesitate to respond to this email or call me.

Here to serve,

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