We know many of you have been keeping your powder dry until we had clarity on the election – and we completely understand why.
Now that Trump has secured the victory let’s have a straightforward conversation about what this means for your real estate investments. Setting politics aside, several proposed policies could work in your favor: potential tariffs will likely keep upward pressure on inflation (good news for rent growth), Trump’s push for interest rate cuts could lower borrowing costs, and proposed tax reforms might put more money in tenants’ pockets.
That said, we understand that elections and the governance of our country are deeply personal matters, and our investor base includes individuals from across the political spectrum. We recognize that some of you may feel strongly about the election outcome, and our intention is not to make a political statement or show preference for one side over the other. Our role as a business and a partner is to focus on safeguarding and growing your capital, approaching major events with a clear, investment-focused lens. With that in mind, there are some practical tailwinds here that we shouldn’t ignore.
The 2024 Election: What Happened?
Donald Trump reclaimed the White House in dominant fashion with 292 electoral votes (and counting), a 3%+ popular vote margin (the first Republican popular vote win in 20 years), and decisive wins in battleground states that pundits swore would be nail-biters. What could this mean for real estate and multifamily investing?
State-Level Victories Signal Strong Republican Momentum
Pennsylvania was a prime example of Republican dominance on election night, where Trump secured the widest margin of victory since Reagan ran in 1984. The pattern repeated in Wisconsin, North Carolina, and Georgia—states where local housing markets hang on every political shift—while traditional Republican strongholds Texas and Florida reinforced their red state status. At 78, Trump will enter office with a clear mandate and unified party support behind him (and also as the oldest president in history). A Republican-controlled government could signal an era of deregulation and reduced federal oversight of housing markets, potentially easing development restrictions and financing requirements. However, possible cuts in federal housing assistance programs that many multifamily property owners rely on for stable tenant income streams could counter this.
Congressional Control Amplifies Investment Implications
Down the ballot, the GOP’s Senate takeover is arguably even more consequential and impactful, as it creates a unified Republican government poised to implement sweeping policy changes. While final House tallies officially remain pending, prediction markets are ascribing a 99% chance of Republicans taking the House, with many sites halting bets as the “market” is effectively settled. Soon enough, a Republican sweep of Congress will be confirmed, and the Republicans will move swiftly to enact their legislation and policies.
With JD Vance stepping into the VP role, many in the business community also see signals of a more market-friendly approach to everything from tax reform to housing policy. While this could mean looser federal rental regulations and attractive tax incentives for multifamily investors, local rules and market dynamics will continue to be the primary forces shaping opportunities across America’s rental market.
Trump on Housing: Markets Brace for Impact After Election
Tuesday’s election results sent financial markets into overdrive. Stock futures jumped while Treasury yields climbed higher. The dollar muscled its way to a 12-month peak against major currencies, and Bitcoin smashed through to record territory. Wall Street’s reaction makes one thing crystal clear – investors expect Trump’s policies to fan the flames of inflation.
Housing Market Faces Rate and Inflation Pressures
The housing market already shows signs of strain, with existing home sales dropping 3.5% year-over-year through September – the lowest level since 2010. Mortgage rates haven’t helped, marching upward for five consecutive weeks on robust economic data and Trump’s strong showing. His promised China tariffs would also make everything from lumber to light fixtures pricier, pushing up both construction costs and rents. Add in his plans for tax cuts and bigger government spending, and you’ve got a recipe for inflation that could keep those monthly mortgage payments painful. What’s more, Trump’s vocal criticism of the Federal Reserve and push for aggressive rate cuts adds another layer of uncertainty to the housing market.
Mixed Bag: Housing Supply Push Meets Investor-Friendly Policies
Trump’s housing agenda targets multiple fronts. He wants to unleash federal land for housing development while slashing red tape and speeding up permits. His firm stance against rent control measures appeals to property investors, who’ve historically seen higher returns in deregulated markets. The proposed extension of the 2017 Tax Cuts and Jobs Act benefits – including lower corporate rates and pass-through income deductions – could boost real estate investment and development activity. While pushing for increased housing supply, Trump stands firmly against ending single-family zoning, which he sees as crucial for suburban preservation. His team has floated a new housing-focused Opportunity Zone program to spark development in underserved areas.
Objective Takeaways for Investors
Take a deep breath – the election dust is settling. While headlines paint dramatic scenarios, we’re staying laser-focused on what matters: delivering steady returns through proven multifamily strategies. Let’s objectively break down how the election results could shape the investment climate.
- Rate Pressure Reality: Fed criticism and promised tax cuts spell continued inflation concerns. In the short term, expect mortgage rates to stay elevated despite political pressure for cuts, making cash-heavy and low-leverage deals increasingly attractive in the acquisition space. The medium-term to longer-term rate outlook is less predictable. However, Trump strongly favors lower rates and will maneuver his political approach to achieve that goal.
- Construction Cost Dynamics: Proposed China tariffs would boost costs for lumber, steel, and fixtures. Smart operators should lock in renovation supply contracts early and factor higher material expenses into future value-add budgets.
- Suburban Strength Play: Strong opposition to density rezoning and protection of single-family areas pushes more renters toward suburban multifamily. Properties near good schools and retail centers outside urban cores stand ready for appreciation.
- Regulation Rollbacks: Promised cuts to development red tape could speed up permits and lower compliance costs. Markets with heavy regulation today may see faster unit delivery and more competitive conditions within 18-24 months.
- Opportunity Zone 2.0: Proposed expansion of tax-advantaged development zones bears watching. Previous rounds sparked targeted growth in emerging submarkets – new designations could flag tomorrow’s appreciation opportunities.
Wrapping Up
We know times like these can feel uncertain, and each of us processes change differently. What grounds us is remembering that real estate has weathered every political season, boom, and bust over the decades – and smart, patient investors have consistently found opportunities along the way.
Our team wakes up every morning thinking about how to protect and grow your investments, regardless of who sits in the White House. That commitment isn’t changing. So whether you want to dive deep into the market implications or just need a sounding board while you process what’s ahead, please don’t hesitate to reach out with any questions or concerns. We’re all in this together.
Happy Investing,
Reed, Ben & The RSN Team
Reed Goossens is an Australian-born real estate entrepreneur, investor, author, public speaker, and an all-around good bloke. Reed got his start in real estate investing back in 2012 when he moved to the US.
