Americans are grappling with rising housing costs, anticipating President-elect Donald Trump’s plans to alleviate the burden. With the economy being a key focus in the recent election, housing expenses, constituting 32.9% of consumer spending in 2023, have seen a 4.7% rise from the previous year, according to the Bureau of Labor Statistics. Many Americans continue to struggle with finding affordable homes to rent or buy.
Uncertainty lingers about which of Trump’s campaign promises will shape future policies, even with a Republican-controlled government. Analysts are examining Trump’s past actions, his comments on housing, and the conservative Heritage Foundation’s Project 2025 to anticipate potential changes.
Tariffs and the Cost of Building Homes
Trump’s proposed 60% tariff on Chinese goods, with potential tariffs up to 20% on other imports, aims to boost U.S. manufacturing jobs. However, housing experts express concerns over the impact on affordable housing construction. Selma Hepp from CoreLogic highlights the rising material costs as a significant issue, with construction material prices climbing 38.8% since February 2020, according to an Associated Builders and Contractors report. Kurt Paulsen from the University of Wisconsin at Madison notes that existing tariffs on Canadian lumber have already inflated building costs.
Immigration Policy and Its Effect on Construction Labor
Trump’s plan for mass deportations, announced via tweet, may influence housing costs by affecting labor availability. Selma Hepp underscores the importance of immigrant labor in construction, with foreign-born workers comprising 3 million of the 11.9 million construction workers in 2023.
Trump’s ‘Not In My Backyard’ Rhetoric
Trump’s stance on zoning regulations and affordable housing remains complex. Despite criticizing zoning laws for inflating costs, his past actions reflect a “not in my backyard” attitude. Sarah Saadian from the National Low Income Housing Coalition points out the contradiction between easing developer regulations and protecting suburbs from low-income housing. Kurt Paulsen indicates that Project 2025 promotes local control over housing decisions, potentially limiting housing availability and escalating costs.
A More Punitive Approach to Homelessness
With homelessness reaching record levels in 2022, Trump advocates for removing homeless individuals from public streets and institutionalizing those with mental health issues. Kurt Paulsen notes Project 2025’s emphasis on coercive policies to enforce public order. Sarah Saadian expresses concern over a political shift, following a U.S. Supreme Court ruling, towards criminalizing homelessness instead of prioritizing housing stability.
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