LATEST NEWS

What Trump’s Victory Means For Real Estate

Yeah, it’s not good. But time will tell if Mr. Trump follows through on his campaign promises.

By Jeff Vasishta November 9, 2016
Photo courtesy of a katz / Shutterstock.com

You’d think having a real estate tycoon in the White House would be good for the US property market, wouldn’t you? Well, it may, but it could also be cataclysmic. Firstly, let’s forget all the promises Trump made while getting elected. If his track record is anything to go by, his promises don’t mean much. Instead, he’ll surround himself with neo-cons much like George W. Bush did and we all know what happened to the economy when he was in power.

Related:  Trump Place Residents Protest The Large Gold Name On The Front Of The Building

The bottom line is that the country and the world is in shock and the financial world doesn’t respond well to shock. The stock market tanked with the Dow plunging by 800 points but has rallied somewhat since the initial result. If the dollar stays low, foreign investment will more than likely flood in and inflate high end real estate. But if Trump fails to convince the world as to the country’s stability, foreign investors may choose to park their cash elsewhere.  If the Brexit vote is anything to go by, American real estate values will drop across the board. All markets favor stability and the general conception is that if an unpredictable captain is steering the ship, investors will prefer to keep their cash in their pockets.

If Trumps deregulates Wall St. as is the Republican ethos with trickledown economics, lending may skyrocket in the short term, increasing prices and making mortgages easier to come by, especially if the Fed keeps rates low, which they may be likely to do in the short term. In the long term, if history has taught us anything, it doesn’t bode well when the market corrects itself.

Related: As The Trump Brand Take A Nose Dive, New York Real Estate Carries On

Trickledown economics is fine in theory but in reality it doesn’t work. The people at the top benefit from the tax breaks whereas the middle and working class usually suffer. The irony is, of course, that it was the working class that voted Trump into power. If he fails to bring the manufacturing jobs to their communities which he promised and benefits are cut, then we could be heading for massive foreclosures in impoverished communities again.

The big unknown is war. “I’ll bomb the sh*t out of them,” Trump famously said about ISIS. War is a killer for the economy. If Trump, a known reactionary, is baited into violence, then all bets are off, especially if terrorism increases in the US.

The hope, of course, is that Trump will do something good. By all accounts, despite huge losses in the past he has some profitable properties and has run his company for many years. Clearly there is some understanding of business, of profit and loss. But running a country is very different from running a private business. We can only hope he has a strong team of advisors.

Jeff Vasishta

ABOUT THE AUTHOR Jeff Vasishta

ABOUT THE AUTHOR Jeff Vasishta

Jeff is a writer, husband and father but not necessarily in that order. As a music journalist he counts Prince, Beyonce and Quincy Jones amongst those he’s interviewed. He's also owned and flipped homes in Brooklyn, NJ, CT and PA.

  • AGORAFY
    Avocado toasts are the reason why millennials can’t afford a home, says one Australian real estate developer. #AvocadoToast #Millennials https://goo.gl/TBCPnv
  • AGORAFY
    Five years on since Superstorm Sandy, Queens’ coastal peninsula is in the midst of a development boom. #Development #Rockaways https://goo.gl/BRKRrD
  • AGORAFY
    It turns out, renters can’t get enough of good ol’ no-doorman-no-frills apartments. Too bad developers aren’t building any. #Doorman #LuxuryRentals https://goo.gl/pdnbo6
The Housing Market In Shenzhen, The Silicon Valley of China, Slows In 2017
The city of Shenzhen has been on the real estate radar for quite some time. It is known as the Silicon Valley of China. Many…
Developers Jump Aboard The Trend To Revamp Transit Hubs And Remake Cities
Never has the often used marketing term, “close to transportation” been more important when attracting home buyers. These days it’s not just homes that are…
Millennials Are Fueling The Current Sizzling Real Estate Market
Ever wondered why the hosts of home improvement shows seem to be getting progressively younger, along with the fresh-faced couples getting their new properties made…
The Best Cities For Recent Grads To Rent – Without Blowing Their Entire Paycheck
What’s next post graduation? For most, the logical answer is to find a job. After the excitement of finishing your studies and the big celebration,…
Luxury Knows No Limit In Malaysia As A Deluge Of New Developments Hit The Market
The amount of newly constructed high-end real estate in Malaysia is almost as abundant as the lush vegetation which covers the tropical landscape. Despite vacant…
Don’t Call It A Commune – Upscale Co-Living Is Attracting Major Development
What may have once been referred to as a commune is today termed a co-living space. The big news that it’s not hippies with hemp…
It’s Official—New York Is Now The Most Expensive City In The World To Build
As if you didn’t already know, it’s expensive to build in New York City. Not just expensive but now officially the most expensive place in…
An Ultimate Destination For The Most Comprehensive Real Estate Data, Agorafy Prepares To Launch Nationwide
In the coming days, Agorafy will be entering a new chapter. It is the beginning of a new growth cycle in real estate technology with…

TOP 10