2025 Housing Policies: What Real Estate and MHC Investors Need to Know
The incoming Trump administration is poised to reshape the regulatory landscape for real estate investors, with particular implications for those in the manufactured housing community (MHC) sector. This analysis examines the most significant 2025 housing policies expected in housing regulation, taxation, and financing that will impact investment strategies in the coming years.
Housing Regulation Overhaul
The Trump administration plans a substantial deregulatory push in housing policy, centering on eliminating barriers to construction and development. A key priority is rescinding Biden-era fair housing rules, particularly the Affirmatively Furthering Fair Housing (AFFH) rule that Trump had previously repealed during his first term.
“Unlike the previous administration’s approach of mandating local zoning changes, Trump’s housing strategy emphasizes reducing regulatory barriers that impede housing development,” explains Scott Turner, the newly appointed HUD Secretary and former Opportunity Zone council director.
The administration will likely reestablish the White House Council on Eliminating Barriers to Affordable Housing Development, which during Trump’s first term recommended streamlining environmental reviews and updating manufactured housing standards. This approach aims to increase housing supply through deregulation rather than federal mandates.
For MHC investors specifically, the administration plans to update the HUD-Code for manufactured homes and improve the approval process for new home models. These changes could significantly accelerate the production and installation of modern manufactured homes, creating opportunities for MHC operators looking to fill vacant lots with new units.
Opportunity Zones 2.0
Perhaps the most significant initiative for real estate investors is the planned expansion of Opportunity Zones (OZ), which Trump has called “the best economic development program ever.” With Republicans controlling Congress, legislation is expected to extend the OZ tax incentive beyond its current 2026 sunset date.
Key provisions likely to be implemented include:
- A two-year extension of investors’ capital gains deferral deadline (to 2028)
- Designation of new zones based on updated economic data
- Coordination between Treasury and HUD to direct OZ funds toward housing and infrastructure
“We’ve seen Opportunity Zones finance over 185,000 housing units nationally already,” noted Treasury Secretary Scott Bessent. “Our goal is to reboot this program for even greater impact, particularly in the affordable housing sector.”
For MHC investors, the administration may create synergies between Opportunity Zones and HUD programs, potentially offering grants or rental assistance specifically for projects (including MHC preservation) in Opportunity Zones.
Housing Finance Transformation
Significant shifts are anticipated in federal housing finance policies. The Trump administration plans to end the government conservatorship of Fannie Mae and Freddie Mac, focusing on building up the GSEs’ capital and preparing them for eventual privatization.
This transformation has several implications for real estate investors:
- Refocusing on Core Mission: The administration will likely dial back the Biden-era use of Fannie/Freddie as policy tools for affordable housing initiatives.
- Program Reductions: Experimental programs and pilots, such as special affordable lending initiatives or equity investments in multifamily projects, could be curtailed.
- Manufactured Housing Impact: The “Duty to Serve” goals that included purchasing loans on manufactured housing communities and offering financing for resident-owned communities may face review and potential limitations.
- FHA Changes: The Federal Housing Administration could see rule changes aimed at easing burdens on private lenders, with a focus on reducing regulatory costs for FHA-insured lending.
“We’re moving toward a more conservative housing finance policy,” said the incoming FHFA Director. “Our goal is to bring more private capital into the market while ensuring Fannie and Freddie stay focused on their core mission.”
Tax Reform and Real Estate Investment
The proposed “Tax Cuts 2.0” package contains several provisions that would significantly benefit real estate investors:
- Bonus Depreciation: Restoration of 100% bonus depreciation, retroactive to January 2025, will enhance cost segregation strategies for real estate investors.
- Business Interest Deduction: The administration plans to repeal or ease limits on interest deductions under IRC §163(j), increasing leveraging opportunities.
- Capital Gains Tax Rates: Maintaining or lowering capital gains tax rates to a potential flat 15%, along with elimination of the 3.8% Net Investment Income Tax (NIIT).
- 1031 Like-Kind Exchanges: These exchanges will be protected or expanded, ensuring continued deferral of capital gains on property sales when proceeds are reinvested.
- QBI Deduction Permanence: The Qualified Business Income deduction (IRC §199A) will likely be made permanent, offering continued tax relief for real estate operators.
For MHC investors specifically, these tax provisions create significant opportunities for expansion and portfolio growth through more favorable depreciation schedules and enhanced ability to defer capital gains.
Tenant Protections and Market Dynamics
Unlike the previous administration, Trump has not outlined new tenant protection policies, focusing instead on increasing housing supply and lowering costs through deregulation.
The administration has already begun rolling back Biden-era tenant initiatives, rescinding requirements for 30-day advance notice of lease terminations and rent increases for properties with Fannie Mae/Freddie Mac mortgages.
“Federal rent control or tenant-rights expansion is not on Trump’s agenda,” notes a senior housing policy analyst. “The focus will be on lowering rents indirectly by boosting housing supply and competition, rather than through new tenant regulations.”
This approach aligns with Trump’s broader deregulatory stance and emphasis on market-based solutions to housing affordability challenges.
Infrastructure and Development
The administration’s infrastructure policy will emphasize traditional projects like roads, highways, and energy development with an eye toward facilitating housing development.
A priority is reducing permitting delays through eased environmental reviews (NEPA), which could indirectly benefit real estate by lowering the cost and time of land development. The “Freedom Cities” initiative would dedicate federal land for building new communities from scratch, potentially creating new markets for housing development including manufactured housing.
Conclusion
Trump’s housing policies present a generally favorable landscape for real estate investors, particularly those in the manufactured housing community sector. The combination of deregulation, tax incentives, and emphasis on increasing housing supply creates significant opportunities for strategic growth.
However, investors should remain attentive to potential challenges, including growing expectations for transparency and the possibility of state and local governments implementing their own tenant protection measures in response to federal deregulation.
For MHC investors specifically, the coming years may represent a prime opportunity to expand portfolios, modernize existing communities, and position themselves within favorable tax and regulatory frameworks while they have a supportive administration.
