Will there be a housing boom in second Trump term? Connecticut's affordability may hinge on it
Nov. 7—With any move by the
Sustaining any such gains could hinge on Trump's promise to improve
Real estate markets nationally have been held back by a double-whammy of high mortgage rates and pricey construction costs. Both have limited sales and development of new homes, experts say, despite continued interest among first-time buyers paying high rents. Many people have pushed ahead with purchases despite the higher cost of carrying a mortgage, counting on their ability to refinance down the road as interest rates ease.
First-time homebuyers accounted for just 24 percent of all
On Wednesday a
"For better or for worse the federal government does not exercise a tremendous amount of influence over these areas, so do not expect the Trump presidency to change this much at all," said
SALT cap expiration?
From the perspective of
Trump had pushed for the so-called SALT cap in his first term in the
Among the planks in his campaign platform, Trump promised to help new homebuyers through tax incentives and other federal support — without providing specifics. The Trump campaign linked mortgage rates to overall inflation, saying that taming inflation will help mortgage applicants see lower interest rates on new loans. The campaign also cited unspecified regulations it deems "unnecessary" that are contributing to higher housing costs.
Despite initiatives from Trump's first term in office like the Opportunity Zones program, which created tax incentives for construction of housing and commercial developments in urban areas,
The Tax Cuts and Jobs Act of 2017 pushed by Trump in his first administration established a
To limit the impact on
New home construction
But that was pre-pandemic, with flex-working allowances helping to spur a real estate boom in
"Affordability is restricting the ability of many potential homebuyers from achieving their dream," Henn said. "While the new administration may be able to reduce mortgage interest rates and building costs through federal actions, the supply of housing — a critical element in real estate markets — requires state and local governments to move to alleviate local burdens."
"Nurses, the guy who works at IGA who everybody loves, volunteer firefighters, municipal workers, teachers — they can't live here," Gantt said. "So many communities around here, you don't have young people coming in because they can't afford to live here."
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