President Donald Trump’s address to Congress on March 4, 2025, outlined several key policies that could significantly shape the real estate market over the next four years. Covering tax cuts, deregulation, immigration, trade, climate policy, and healthcare reforms, his proposed agenda presents both opportunities and challenges for homeowners, buyers, investors, and developers. While these policies will have nationwide implications, Utah’s rapidly growing housing market—particularly in Salt Lake City, where major zoning changes have already been made to address housing supply and affordability—could feel the effects in a unique way.
Tax Cuts and Housing Demand in Utah
Trump Quote: “I’m proposing a new tax cut for the middle class, to put more money in your pockets and help you afford your homes and raise your families.”
Tax cuts have long been a popular strategy to stimulate the economy, and when homeowners have more disposable income, they often put that money toward housing. For Utah, a state already experiencing rising housing prices due to rapid population growth, an increase in disposable income could drive even more demand in markets like Salt Lake City, Provo, and Ogden.
However, history suggests the effects of tax cuts can be complex. The 2017 Tax Cuts and Jobs Act led to an increase in consumer spending but also placed a cap on state and local tax deductions, which disproportionately affected homeowners in high-tax states. While Utah’s tax rates are more moderate, an increase in demand without a corresponding rise in housing supply could further strain affordability, particularly for first-time buyers trying to enter the market.
Deregulation and Housing Supply—A Parallel to Salt Lake City’s Zoning Reforms
Trump Quote: “I will sign an executive order to make homeownership more affordable by reducing the regulatory burdens that drive up housing costs. We need to build more homes, and we need to make sure that the American dream of owning a home is within reach for every family.”
Salt Lake City has already taken bold steps toward deregulation in housing with its 2023 decision to legalize fourplexes in all residential zones, a move designed to increase housing supply and ease affordability issues. If Trump's federal deregulation efforts follow a similar trajectory, Utah could see an even greater influx of housing developments, potentially making homeownership more accessible.
However, deregulation is a double-edged sword. While it can remove barriers to building new homes, it also raises concerns about the quality of housing and infrastructure. A poorly planned expansion of housing without proper oversight could lead to problems such as overcrowding, strain on utilities, and changes to neighborhood character. The effects of deregulation will depend on whether Utah municipalities take a balanced approach, ensuring that new developments meet both affordability and livability standards.
Immigration Policies and Utah’s Construction Workforce
Trump Quote: “On immigration, we have taken historic steps to secure our border and protect our nation... But we also need to have a fair and compassionate immigration system that welcomes those who can contribute to our country.”
Utah has a thriving construction sector, and its booming housing market depends heavily on skilled labor. If Trump's immigration policies reduce the number of available workers in the construction industry, the cost of building new homes could rise, directly affecting affordability.
Salt Lake City’s housing crisis has been partially attributed to a lack of construction workers, which has caused project delays and increased costs. If stricter immigration policies limit the pool of skilled tradespeople, Utah's housing supply could fall further behind demand. On the other hand, a merit-based immigration system, as Trump proposed, could increase the number of highly skilled professionals, leading to greater demand for higher-end housing in places like Park City and the tech-driven Silicon Slopes region.
Trade Policies and Construction Costs in Utah
Trump Quote: “We have renegotiated many of our trade deals to make them fairer for American workers and businesses… But we must continue to stand up to countries that take advantage of us. That’s why I am imposing tariffs on countries that have unfair trade practices.”
One of the biggest hidden costs in real estate development is the price of raw materials, and trade policies have a direct impact on these costs. Utah’s developers rely on lumber, steel, and concrete, much of which is imported. Tariffs on imported building materials could significantly raise construction costs, which would make new housing projects more expensive.
We’ve already seen this happen. In 2018, tariffs on Canadian lumber led to a 20% increase in homebuilding costs nationwide. If similar policies are implemented, the cost to build new homes in Salt Lake City, St. George, and other growing Utah cities could rise, making it harder to bring affordable housing projects to market.
Climate Policy and Energy Costs in Utah
Trump Quote: “We have withdrawn from the Paris climate accord, which was unfair to our country, and we are now leading the world in energy production and innovation.”
Utah homeowners are already seeing rising energy costs, and withdrawing from international climate agreements could influence the energy market in both positive and negative ways. On one hand, increased domestic energy production could lead to lower utility costs, making homeownership more affordable in the short term.
However, Utah is also a state that has seen increased wildfires, drought conditions, and air quality concerns—all of which can have an impact on real estate values. If federal policies reduce environmental protections, there may be long-term consequences for property values in climate-sensitive areas, such as those near the Great Salt Lake or wildfire-prone mountain communities.
Healthcare Reforms and Utah’s Growing Population
Trump Quote: “Finally, on healthcare, we are working to lower the cost of prescription drugs and to provide more choices and better care for all Americans.”
A healthier economy typically leads to a stronger real estate market. If Trump's healthcare policies succeed in lowering costs, Utah residents could have more disposable income to invest in housing.
Additionally, Utah is a growing hub for healthcare innovation, with major hospitals and medical research centers expanding throughout the Wasatch Front. Increased investment in healthcare infrastructure could drive up demand for real estate near medical facilities, particularly in Salt Lake City, Provo, and Ogden.
Final Thoughts: What This Means for Utah Real Estate
President Trump’s policy proposals present a complicated mix of benefits and challenges for Utah’s housing market. Tax cuts and deregulation could fuel growth, particularly in areas like Salt Lake City, where zoning laws have already been relaxed to encourage multi-unit housing. However, immigration restrictions and tariffs may pose challenges for housing affordability and supply. Climate policy and healthcare reforms could shape long-term economic trends, influencing energy costs, insurance rates, and disposable income.
For Utah homeowners, buyers, and investors, understanding these potential policy changes is essential. Over the next four years, the real estate market will evolve, shaped by both federal policies and local efforts to address housing affordability and growth.
What do you think? Will these policies help or hurt Utah’s housing market? Let’s discuss.
