SEATTLE – A new report by Zillow says home prices may go up next year under policies enacted by President-elect Donald Trump.
Zilllow is predicting that if Trump enacts tougher immigration policies, it could lead to a continued labor shortage to build homes, meaning those costs would be passed on to the consumer.
Zillow says a rise in home prices next year can also be blamed on rising construction wages.
But overall, the company said it expects more millennials to become homeowners in 2017 as the percentage of people who drive to work will rise for the first time in a decade.
Zillow argues that more homeowners will move into suburbs for housing even as urban development continues to grow.
On the rental front, Zillow says it predicts income growth and fewer rent hikes means renting will be the most affordable it’s been in two years.
We’re still waiting on Trump’s final policies on the economy and immigration.
All of that could have an effect on what the public could either pay or see in home values.
Photo by Jtmorgan