Donald Trump will likely have a big impact on the housing market in 2025. And the result is that home prices could drop in some cities, while going up in others.
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The main ways Trump could influence the housing market include higher mortgage rates, increased homebuying optimism, more mortgage defaults and foreclosures, less government regulation, and the privatization of Fannie Mae and Freddie Mac.
The totality of these impacts could mean that home prices drop in housing markets like Florida and Texas, where housing inventory has already spiked. But perhaps home prices continue going up in California and New York, where there is a shortage of homes for sale.
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