Housing Market Stimulation
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What Trump could do next to open up the housing market, according to famed real estate investor Grant Cardone
Business Insider· 2026-01-23 10:30
Core Viewpoint - Grant Cardone expresses optimism about the US housing market, anticipating that the Trump administration will implement measures to stimulate it despite high home prices and elevated mortgage rates [1][10]. Group 1: Housing Market Stimulus - President Trump has prioritized housing affordability ahead of the 2026 midterm elections, addressing high housing costs and interest rates at the World Economic Forum [2]. - Proposed plans include having Fannie Mae and Freddie Mac increase their mortgage bond purchases and banning institutional investors from acquiring single-family homes [2]. Group 2: Tax Code Adjustments - Cardone predicts potential adjustments to capital gains taxes for home sales, suggesting that the exclusion caps for married and single filers could be raised from $500,000 and $250,000 respectively, making it easier to sell appreciated properties [6][7]. - This change could lead to more homes entering the market, as the tax burden would be lessened for homeowners [6]. Group 3: Investment Incentives - Cardone believes that extending "bonus depreciation" to single-family homes could enhance investment opportunities, allowing investors to deduct the full cost of qualifying properties immediately [8][10]. - Currently, single-family home purchases allow for depreciation over 27 years, which is less favorable compared to the immediate write-off for larger assets [9]. Group 4: Speculation on Policy Changes - While Cardone's insights are based on discussions with administration insiders, a White House spokesperson has stated that no specific policy changes are currently under consideration, labeling any reports of potential actions as speculation [10][11].