After watching George Gammon’s video discussing President Trump’s recent housing executive order, I felt motivated to take his macroeconomic insights and contemplate them specifically for real estate investing using self-directed IRAs. While George’s focus is on broader economic implications, here we’ll explore how those same developments could influence self-directed investing—particularly in the real estate sector.
President Donald J. Trump’s executive order aims to make housing more affordable by reducing regulatory burdens, expanding supply, and encouraging private-sector involvement. For investors using self-directed IRAs—with features such as checkbook control and the ability to invest in a broad array of asset classes—this policy shift could present new opportunities to diversify into real estate.
Understanding the Impact of Regulations on Housing Prices
Government regulations have long influenced the cost of developing residential and multifamily properties. The National Association of Home Builders (NAHB) estimates that, as of 2021, regulations account for nearly 23.8% of the final price of a new single-family home—adding an average of $93,870 to the cost. In the multifamily sector, the burden is even greater, with the National Multifamily Housing Council (NMHC) reporting that regulatory costs contribute 40.6% to total development expenses as of 2022.
For investors, these numbers highlight how high compliance costs may create both challenges and opportunities. If regulatory barriers are lowered, investors using self-directed IRAs may gain access to more competitively priced real estate.
Applying a Warren…