Trump's election will push home prices up through two mechanisms: immigration restrictions will shrink construction labor, raising wages, while tariffs will increase building material costs. The host argues buyers should purchase properties immediately before these effects take hold.
Greetings from the beautiful Four Seasons Hotel in Austin, Texas, where you can get the breakfast buffet for a bargain price of $78 per person. But, hey, there's no inflation. Yeah, right. So today we have got Professor David Colum with us back on the show. He's been on a few times before over the years, and he is here with us to talk about the impact of the Trump election and the absol sweep of the government. This is just such a landslide. It's absolutely unbelievable in so many aspects of government, not just the presidency, of course. And you've watched the results, so I don't need to recap them for you. But they are truly, truly amazing. I mean, all of the swing states that defected is just really an amazing election. It really is too big to rig, as I like to say. And as others like to say, it really was too big to rig this one because people just demanded a change and thankfully they did. Going to be better for everybody. Even the stupid, crazy, far left people. It's going to be better for them, too. So it's going to be better for pretty much everybody. There's going to be widespread increases in prosperity, but it is going to take time to work its way through the system. And it won't be without some pains and some bumps in the road. Namely, two major factors that will put massive upward pressure on home prices. And here they are. One is, of course, the curtailment of immigration, which I think is a great thing needed to happen, folks. Countries have borders. Imagine that. Then the massive deportations of illegals that Trump has promised. So we'll see how this plays out. But you know what this means. A lot of these people are supplying labor to the housing market and the construction industry and a whole bunch of other industries. And this is cheap, cheap labor. This is why the Democrats, in addition to the fact that they're just, you know, fake voters. Right. Imagine a country that doesn't require ID to vote. You have to have ID to do everything else except vote. So thank God that's gonna change. I think we're gonna see a federal law about that, fortunately. But so as these people are either not coming into the country or are leaving, that's going to push up the cost of labor, but it's going to create more American jobs and it's going to be good in the long run, but in the short run, it has the effect of pushing prices up and general inflation. The other thing, of course, is the much talked about tariffs. The tariffs that are coming are going to make so many ingredients of homes a lot more expensive. And builders are going to pass that cost through to buyers. That means you, us investors, right? Our cost is going up. So the urgency here is, and the word to the wise here is that you really should consider buying more properties before we really see the result of this. Now, what does it do to resale homes? Well, it of course lifts the prices of those as well because resale homes just respond to the same competitive market as the new home builders. And if they see that the new home builders are getting more money for their homes, they're going to raise their prices too. You know, it's a comparable market. And if they're doing any renovations to their properties or they're doing any fix up, you know, any, any parts and labor, their cost of doing that is going up and they're going to pass that through to the buyers. And I know there are little soft spots in markets around the country now, but folks, it hasn't even been a week, okay? And all sorts of things are starting to change very, very quickly. Mark my words. These two factors, among many others are upward pressure on prices. And you want to act before this works its way through the system. Okay? Really, really important. So the action step for you is to contact your investment counselor today. Go to Jason hartman.com or if you're already working with one of our great investment counselors, talk to them about properties that you can buy to build your portfolio before we see this upward pressure really become systemic and get into the market. Okay? You want to act sooner rather than later. Really, really important. You know, I haven't talked to you much about too much urgency in the market, really, in the past year I have talked about prices going up and so on and so forth, which they have. I've been completely right about that. Pat me on the back. Yes, I know. I just had to rub it in. Sorry about that. If you can get past Jason saying I told you so, as one recent review said. Thank you for that review. There's some good information on his show. Well, I'm glad you appreciate that. But act sooner rather than later. That is the important, important thing. And if we combine this with a Fed pivot, which we're already seeing that, and we're going to see more rate reductions, but maybe less so than if Kamala would have been elected or selected, we are going to see overall inflationary pressures. And so the Fed may not be as aggressive as might have been thinking of being before the election. We'll see how that all plays out. Look, interest rates, I can't tell you I'm right about interest rates because I've been lousy at predicting them. You know that I've admitted it. Nobody can predict interest rates, including yours truly. They are very, very hard to predict. But nonetheless, acting sooner rather than later is important. The shortage, the demographics, I mean, just everything we've talked about on past episodes. I think it's a good time to become very optimistic again. Compared to where we were a week ago. I mean, there's a lot of reason for significant optimism. Look at what the stock market has done. Look at the Trump bump. It's massive. It is massive. Unprecedented changes going on all around the world. And by the way, be sure you are following me on Instagram, Facebook X of course to a lesser degree. But I do love X for getting news and information because it is the censorship free platform. So that's wonderful. Jason Hartman and the number one Jason Hartman one because a lot of good posts for you there. Just memes. I'm a huge collector of memes that you may want to reuse in your own social media posts. They're pretty good stuff.
