With Donald Trump now back in the White House, he is likely to pursue policies that could impact various sectors of the economy, including Maine real estate. How could those policies specifically impact Maine homebuyers and sellers?
While Trump did not offer specifics on some real estate and housing-related issues, his intentions are clearer on other objectives, such as tariffs, addressing undocumented immigration, and overall economic goals such as lowering prices and maintaining or enhancing the American economy. Let’s take a minute to look more closely at a couple of Trump’s key campaign promises, and what they might mean for us nationally and specifically here in Maine.
Tariffs
Tariffs are (essentially) taxes on American importers designed to make the importers pay more for foreign goods they import. (This is done to try to make American producers’ goods more competitive against those foreign goods.) The costs of tariffs are then generally passed on to U.S. consumers. Placing higher tariffs on—for example—imports of building materials such as lumber, steel, and fixtures from countries such as Canada, Mexico, and China could increase the cost of those building materials. In turn, those higher construction costs could translate to increased home prices and home values for Maine homebuyers. On the other hand, sellers might gain a short-term benefit from higher home valuations.
Mass Deportation of Undocumented Immigrants
Although it’s less of an issue in Maine than in other regions of the country, mass deportation of undocumented immigrants could have significant consequences for the housing market nationally, both in terms of supply and demand. In some areas, even here in Maine, decreased demand for rental or purchase properties could lead to lower rents and property values. For Maine homebuyers, this could mean higher prices for newly constructed homes (in part because of labor shortages and thus “more expensive” American labor) plus longer timelines for custom builds. Sellers in immigrant-heavy areas might face decreased demand, leading to slower sales and potential price reductions.
The View from 30,000 Feet
As we move through 2025, most real estate experts and economists anticipate a “mixed” real estate market. On the one hand, traditional Republican policies favoring more deregulation, tax cuts, and other attempts to spur private-sector growth could stimulate investment and inventory in some areas, benefiting Maine homebuyers—and others across the country—by addressing housing shortages. The trick, however, will be to avoid having these policies disproportionately favor high-income buyers while limiting access for first-time and lower-income buyers.
On the home-sellers side of the equation, sellers may benefit from higher and more sustained demand in certain regions, but could face challenges in areas impacted by tariffs, labor shortages, or economic uncertainty. The successful performance of the national and Maine real estate markets will depend heavily on how proposed Trump Administration policies are implemented, and how broader economic conditions evolve.