Real Estate Trends and Policy Changes Under the Current U.S. Administration

The U.S. real estate market is undergoing significant shifts due to new government policies and economic factors. Here are some of the most important trends shaping the industry in 2024 and beyond:

1. Changes in Real Estate Agent Commissions As of August 17, 2024, new regulations have altered the way real estate agent commissions are structured. Previously, sellers typically paid both their own agent’s commission and that of the buyer’s agent. Under the new rules, buyers must now negotiate and pay for their own agent’s commission separately. This change is expected to impact how real estate transactions are conducted and could influence housing affordability.

2. Rising Home Prices Home prices in the U.S. have seen a modest increase of 0.3% in 2024 compared to the previous year, bringing the median home price to approximately $442,500. The continued rise in prices is driven by strong demand and a limited housing supply, keeping affordability a major concern for buyers.

3. Immigration and Urban Growth Major metropolitan areas such as New York, Los Angeles, Miami, San Francisco, and Dallas are experiencing population growth due to increased immigration. Between 2023 and 2024, these cities gained approximately 2.7 million people through net international migration. This surge has contributed to urban population recovery post-pandemic but has also intensified rental market pressures, pushing rents to record highs.

4. State-Level Policy Reforms Certain states are introducing tax and housing reforms that could reshape the real estate landscape. In Florida, Governor Ron DeSantis has proposed eliminating property taxes in favor of alternative tax structures. These reforms, if implemented, could significantly impact property investment strategies and homeownership costs in the state.

5. Housing Affordability Crisis and Government Initiatives The affordability crisis remains a central issue in U.S. housing policy discussions. Rising rental costs and home prices have contributed to economic uncertainty. The current administration has proposed measures such as deregulation and tax incentives aimed at increasing housing supply and easing affordability concerns.

These trends highlight a real estate market in transition, influenced by economic, political, and demographic factors. Buyers, sellers, and investors must stay informed about these changes to navigate the evolving landscape effectively.