Epic Real Estate Investing - Trump’s Housing Plan Will Change Everything – Are You Ready? | 1414

Episode Date: January 23, 2025

In this episode, we dive into one of President Trump's most groundbreaking executive orders announced on his first day: a sweeping housing relief package aimed at slashing home prices and addressing the cost of living crisis. We'll break down the details of this aggressive plan, including cutting regulatory red tape, boosting housing supply, creating construction jobs, and the role of key figures like Elon Musk and Scott Turner in implementing these changes. We'll also explore the potential benefits and criticisms, from market impacts to environmental concerns. Plus, we'll provide crucial advice for homebuyers, builders, and sellers navigating this evolving landscape. Stay informed on the biggest housing market transformation in decades. Learn more about your ad choices. Visit megaphone.fm/adchoices

This is Terio Media. Hey, strap in. It's time for the epic real estate investing show. We'll be your guides as we navigate the housing market, the landscape of creative financing strategies, and everything you need to swap that office chair for a beach chair. If you're looking for some one-on-one help, meet us at rei-a-a-com. Let's go, let's go, let's go, let's go, let's go, let's go.

Let's go. $50,000 home price cuts across the board for everyone. That's what it says. In one of Trump's first day executive orders, we could see a revolution coming to the housing market. I'm going to break down the details, the drama, and exactly what every homeowner and home seeker needs to know right now. Let's cut through the noise and get straight to what matters.

Just hours ago, Trump signed what might be the most aggressive housing relief package we've seen in decades. The big headline from the memo, delivering emergency price relief for American families and defeating the cost of living crisis. President Trump's executive order aims to deliver emergency price relief for housing. That means lowering the cost of homes, boosting supply, and slashing red tape. Here, imagine this. You're looking at a home that costs $400,000.

According to Trump's executive memo, government regulations alone are forcing you to pay an extra $100,000 for that house, meaning 25% of your home's cost might be pure bureaucracy, see. But he's putting an end to it. And that sounds great, right? But how is this actually going to happen? And who wins or loses in this scenario? Here's what the order specifically targets. Number one, lowering housing costs. Trump claims regulatory red tape adds $50,000 to the price of a new home. So the goal, cut those costs by reducing rules on developers and home builders. Number two, expanding housing supply. To meet demand, the order prioritizes fast-tracking projects that have been tied up in

bureaucratic limbo. And number three, economic boost for workers. The initiative promises job creation in construction, a win for workers who've been sidelined. While these goals sound amazing on paper, official link to the memo in the description, by the way, let's talk about the potential roadblocks. Some critics argue that this plan might only benefit big corporations while leaving first-time home buyers out in the cold. And then there's the new Department of Government Efficiency, Doge, headed by Elon Musk, who will be overseeing some of these changes. Can Musk untangle the mess of housing policy? We'll see, but it doesn't stop there. Trump's housing initiatives also call for eliminating harmful climate policies that he claims drive up costs. Think fewer restrictions on energy

usage for construction projects. Great for builders, but what about long-term environmental impacts? You know that the critics are going to draw some attention to this. Should we prioritize cutting costs today? Even if it might come at a different cost tomorrow? Now next, let's talk about the major reshuffling happening in federal housing agencies. Trump's new pick for HUD Secretary is Scott Turner, for his work with Opportunity Zones. Well, his track record of attracting private investment translate to meaningful change for everyday Americans? And then there's Bill Pulte, the new FHFA director, whose family name is synonymous with home building.

With his insider perspective, could this be a turning point for Fannie Mae and Freddie Mac? Or is this just more political theater? Oh, and don't forget the CFPB, the Consumer Financial Protection Bureau. Elon Musk himself has called for it to be deleted. Now, if that happens, what does it mean for mortgage oversight? and consumer protection. It's a bold move, but is it too bold? Now, here's where things get really dicey, tariffs. Trump hinted at reintroducing steep tariffs on Canada and Mexico. Now, remember what happened when Trump introduced tariffs in this first term, particularly on Canadian

softwood lumber. Lumber prices shot up, adding nearly $9,000 to the cost of building a home. But overall, here's where the numbers ended up. During the Biden administration, the average American household got hit with nearly $50,000 in regulatory costs. But during Trump's first term, he managed to cut costs by $11,000 per household. That's the difference between making or breaking your down payment. So what does this all mean for you? Well, here are three critical things you need to know right now. Number one, if you're planning to buy a home in 2025, you need to understand this crucial market dynamic. While Trump's regulatory cuts might initially push prices down and over-regulated markets, that relief could be incredibly short-lived.

Why? Well, there's massive pent-up demand from buyers who've been priced out of the market. As soon as prices show any sign of dropping, we could see a flood of buyers jumping in, which would likely drive prices right back up, possibly even higher than before. So my thoughts are don't wait for the perfect bottom of the market. Like most market bottoms,

you're not going to know when it hit until way after it hit. So consider looking for deals in municipalities with the highest regulatory burdens right now, places like San Francisco, where building permits can take years and add hundreds of thousands to development costs. Seattle, where zoning restrictions severely limit new construction. Then Boston, where the approval process can add 18 months to any project, or parts of New Jersey, where environmental regulations and local ordinances can make up to 35% of a home's cost. Even some surprising markets like Boulder, Colorado, and Austin, Texas have regulatory costs that can add 20 to 30% to home prices. These areas could see the biggest initial impact from federal,

changes, giving you a small window of opportunity before the market adjusts. Number two, if you're currently in the middle of a build, you need to act fast. Those potential 25% tariffs on Canadian lumber could hit as soon as February 1st. Talk to your builder immediately about locking in material prices right now. And here's something many buyers don't realize. You can actually pre-purchase critical materials through your builder to protect yourself from future price increases. This involves working with your builder to identify key materials, especially lumber,

that could be affected by the tariffs, and either purchasing them directly or adding a materials purchase rider to your contract. And number three, if you're thinking about selling, here's the most important advice I can give you. Don't sell unless you absolutely have to. Here's why. We're facing a massive housing deficit

that's been building since the 2008 crash. Even with Trump's new policies making it easier and cheaper to build, we're looking at years, possibly decades of catching up to do. The math is pretty simple. We've been underbuilding by roughly 2 million homes per year compared to population growth and household formation, even if construction immediately

doubled, which is unlikely given labor and supply constraints, we'd still need five to 10 years just to catch up to current demand. But what if you absolutely need to move? Well, here's a strategy most people miss. Consider keeping your current property as a rental. With this supply deficit, rental demand is likely to remain strong for years to come. Plus, you'll maintain a foot in the real estate market, which could be crucial given the strong long-term appreciation potential. If you do need to sell, yes, there might be a sweet spot between March and August 2025 when these new policies could drive a surge of buyer interest. But remember, that's short-term thinking. The big picture shows that real estate, especially in supply-constrained markets,

is likely to be one of your best long-term investments. The housing market is about to undergo its biggest transformation in decades. Whether that's good or bad news depends entirely on how you prepare. Trump's plan is ambitious, no doubt about it. But like any bold initiative, it comes with risks. Will the promised relief come fast enough to make a difference, or will we see unintended consequences that set us back even further? If you're worried or excited about what's next, you're not alone, because we're following the story closely, breaking it down so you're always ahead of the game. Until next time, stay informed, stay prepared, and as always, keep building your future. Take care. And that wraps up the epic show. If you found this episode

valuable, who else do you know that might too? There's a really good chance you know someone else who would, And when their name comes to mind, please share it with them and ask them to click the subscribe button when they get here and I'll take great care of them. God loves you and so do I. Health, peace, blessings and success to you. I'm Matt Terrio. Living the dream.

Yeah, yeah, we got the cash flow. You didn't know home for us. We got the cash flow. Okay, only 10 more presents to wrap. You're almost at the finish line. But first, there, the last one. Enjoy a Coca-Cola for a pause that refreshes. This podcast is a part of the C-suite Radio Network.

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