Potential Effects of a Trump Presidency on Real Estate and mogul

From interest rate cuts to Trump returning to office, here’s everything you need to know about the future of the real estate market. Regardless of how you voted, staying informed about what lies ahead is crucial for everyone.

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Potential Effects of a Trump Presidency on Real Estate and mogul

With Donald Trump returning to office, there are several expected policy changes and economic trends that could directly influence the Single Family Rental (SFR) market and broader real estate investment landscape. Here’s what mogul investors should consider:

1. SFR Market Outlook and Demand:

Trump's policies often promote economic growth, which are expected to bolster the SFR market.

• Impact on Demand: Rising wages and stronger job markets typically increase demand for  SFRs, especially in Sunbelt regions that mogul focuses on
• Investor Implications: As more families seek housing options with space and amenities, well-placed SFR properties are likely to maintain strong occupancy rates going forward.
• mogul Advantage: This trend could boost cash-on-cash yields paid to mogul investors monthly, with properties in key mogul markets like Dallas and Houston, positioned to benefit tremendously.

2. Zoning and Development Regulations:

‍Trump has stated, “We will eliminate regulations that drive up housing costs with the goal of cutting the cost of a new home in half. We think we can do that. The regulations alone cost 30%. Regulation costs 30% of a new home.”

• While this is a finger in the air %, regulations do increase costs, and Trump has been negative towards government oversight. Result: decreased regulations could lead to decreased construction costs, which leads to increased supply online.

3. Deportation Policies:

‍Trump has publicly stated to carry out, “the largest deportation operation in American history."

• Construction costs will go up as developers turn to alternative sources of labor, which could reduce new properties coming online. Result: constrained supply leads to rising prices of existing supply.

4. Monetary Policy and Mortgage Rates:

‍Trump said in New York, “Reducing mortgage rates is a big factor. We’re going to get them back down to, we think, 3%, maybe even lower than that, saving the average homebuyer thousands of dollars per year.”

• The President cannot directly lower interest rates - In 1951, the Fed was granted independence from Congress, so the Fed could look after the long term health of the economy.
• That being said, in 2026, Powell’s term is over, and Trump does not have the best relationship with the Fed Chair.
• Trump will appoint someone to lead the Fed in 2026, which requires senate approval.
• A lower interest rate environment promotes economic growth and more demand in the housing market. Result: increased demand will push home prices higher, which will lead to more renting for longer, both boosting yields for mogul investors and appreciation for our home prices.

Impact of Interest Rate Cuts on Real Estate and mogul

High Level Impact of Interest Rates on Real Estate:

• When interest rates drop, home prices rise
• When interest rates rise, home prices drop

The Federal Reserve has just announced a 0.25% reduction in interest rates, bringing the federal funds rate to 4.5%. This decision aims to stimulate economic growth and has significant implications for real estate investors like you.

Lower interest rates reduce borrowing costs, making financing new property acquisitions more affordable. This environment often leads to increased demand in the real estate market, potentially driving up property values further. Ultimately, this should allow mogul investors to benefit from the increased demand and potential appreciation across the real estate market.

Conclusion - Takeaway

While Presidents tend to promise a lot on the campaign trail and a number of the proposed changes cancel each other out, the Single Family Rental market is poised for outsized returns in the near and long term. The interest rate cut further supports the deployment of capital into SFRs, and we at mogul offer high risk-adjusted returns in the face of all economic environments.  

Get started with mogul today and invest in blue-chip SFR real estate for as little as $250.

Disclaimer

The information provided in this blog post is for informational purposes only and does not constitute financial advice. Always consult with a qualified financial advisor before making any investment decisions.