Real estate is an important factor contributing to a nation’s wealth. This comprises around 6% of America’s gross domestic product (GDP), one of the main gauges of a nation’s economic strength. Recently, New York Federal Reserve has released that USA’s economy has reached an almost 3.2% increase in the nation’s GDP in the fourth quarter. An increased GDP, of course, signifies various things, one of which is the boom of the different economic sectors of America – including real estate. As an entrepreneur who made billions in real estate market, President Donald Trump, together with the current administration, claim the credit on this pleasant economic growth spurt. Is this true? How much of this economic increase can be attributed to the current administration? Is the real estate boom really because of the Trump administration or is this a case of claiming where credit isn’t due?
In his campaign, the President laid many goals that he wanted to achieve during his reign, one of which is the Rebuild America Plan that aimed to spend $1 trillion to rebuild U.S. infrastructure. This proposal has undoubtedly spurred a spike in the real estate market due to increased construction. The building of commercial and industrial properties did not only create jobs but also increased investments. Movers and builders, like piano movers Denver is an example of those that benefit from the real estate boom. Any business boom can be seen in parasite type of industries like secure paper shredding and other similar business related business services.
The humongous percentage growth brought about by Trump’s election in the stock market has also raised optimism among investors and consumers alike. Despite the increased mortgage, with the economy and wages picking up, prospective buyers are more secure and confident in buying. This was translated to a 6% increase in new home sales in February.
Also, Trump administration’s more lofty goal of housing tax reduction for Americans can also help in enticing more prospective home buyers in purchasing their own properties. Lower taxes can also mean that potential buyers can save more money to pay their mortgage. Credit availability may also improve. Add this to the fact that more millennials are now looking for a home they can purchase or rent in order to assert their independence, real estate market is on the rise.
However, it should be noted that lowered tax rate may spur those hoping to buy their first homes to just consider renting due to the elimination of mortgage-related tax savings. The increased demand for homebuyers from the millennial generation will also skyrocket the price thus stymie potential buyers. This, on the other hand, will be more beneficial to landlords and renters allowing them to invest more in commercial real estate. There also is the booming market of auctions for estates. According to the top auctioneer in Springfield, MO, Foreman Auction, they say in the past year business has gone up considerably since the new administration has been in place.
The real estate is a tricky thing affected by various factors with effects that are sometimes not as clear-cut as we want them to be. With many factors affecting the rise and fall of the market, you cannot exactly pinpoint what caused it to grow and deflate. Though you cannot deny that the Trump administration played a part in the growth of the real estate growth, saying that it’s solely caused by the cunning of the current administration would be too much. It’s not simply a matter of reducing one factor in order to increase one, especially if other more complex factors come into play.