As uncertainty is said to be “enormous” with Donald Trump as president, there are real estate executives who have an optimistic view when it comes to Trump’s promise to improve infrastructure through his proposed $1 trillion infrastructure plan to be implemented within the next ten years. Joseph Sitt, the CEO of Thor Equities stated during a Swiss Economic Forum event earlier this year, “I have been saying for a long time that investing in modernizing our infrastructure will improve the U.S. economy as well as create much needed jobs for the working class, and thus be a driver of economic well-being for all income levels.”
“We are going to fix our inner cities and rebuild our highways, bridges, tunnels, airports, schools, hospitals. We’re going to rebuild our infrastructure, which will become, by the way, second to none. And we will put millions of our people to work as we rebuild it,” Trump said.
Marcus & Millichap stated that the United States economy should continue to grow as the new president takes office. As the company says, the United States economy is now in its seventh year of a durable but moderate expansion. Marcus & Millichap also indicated that 2 million to 2.5 million new jobs should be added during the next year. The country currently has an unemployment rate of 5 percent and 5.5 million unfilled job openings.
“Faster economic growth could result in inflationary pressure, pushing interest rates higher.” The firm also highlighted that mortgage interest rates have already jumped following Trump’s election, with many economists predicting that the average interest rate on a 30-year, fixed-rate mortgage loan might soon hit 4 percent. Marcus & Millichap also predicted that a volatile stock market — which dropped sharply immediately following Trump’s win and then rebounded quickly — is definitely a possibility.
According to Commercial Observer, there is reason for optimism—a cautious optimism—across the nation. “If Trump can accomplish what he says he intends to, there will be a benefit to the real estate market,” the media site noted. “Everyone has been surprised thus far, so many in commercial real estate will be hanging on every Trump word and appointment and won’t make any major bets until the signs are clear.”
Marcus & Millichap also said that Congress should be able to pass a new budget under President Trump and increase the debt ceiling when needed, all events that should spur the confidence of real estate developers and investors. Additionally, the firm suggested the potential for reduced taxes, an increase in infrastructure spending and business deregulation, all of which could provide another spark to the nation’s economy.