The real estate market is going through some big changes in 2025, now that Donald Trump is back in the White House. Policies around trade, taxes, immigration, and development are all having an effect on housing, construction, and buying trends. Here’s what’s happening and how it might affect homeowners, renters, and investors.

Building a Home Costs More

With new tariffs and trade restrictions in place, materials like wood, steel, and drywall are now more expensive. That means builders are spending more to construct new homes, and those extra costs are being passed down to buyers. As a result, home prices are going up—especially in areas where new construction is popular.

Fewer Workers in Construction

Stricter immigration policies are also creating labor shortages. Many construction workers are immigrants, and with fewer of them available, it’s taking longer to finish projects. This delay in building means fewer homes are available, and when supply is low, prices tend to stay high.

Interest Rates Keep Buyers Guessing

Mortgage interest rates have been unpredictable this year. Some weeks they’re low, and other times they rise. This makes it tough for homebuyers to plan, and many are waiting to see what happens next. The result is a slower market in some cities, especially for first-time buyers.

Luxury Homes Are in Demand

Even with uncertainty in the overall market, high-end real estate is doing well. Wealthy buyers are still purchasing luxury homes in top locations. These buyers often see real estate as a safe place to put their money during times of change, especially in big cities and vacation spots.

New Rules for Developers

The Trump administration is rolling back some housing regulations to encourage more building. While this may help speed up some projects, critics say it doesn’t fully solve the affordability problem. With high material and labor costs, it’s still tough to build cheaper homes that everyday families can afford.

Final Thoughts

The real estate market in 2025 is full of movement and change. Some parts of the market are thriving, while others are struggling to keep up. Whether you’re buying, selling, or renting, it’s important to stay updated on how national policies may affect your local housing market.