How Trump’s Housing Policies Impact Pennsylvania’s Rental Market

Real estate policies at the federal level have far-reaching implications for landlords, renters, and property investors alike. During Donald Trump’s administration, numerous legislative changes, tax reforms, and deregulations reshaped the real estate landscape, affecting Pennsylvania’s housing market in ways both direct and indirect. From the Tax Cuts and Jobs Act of 2017 to pandemic-era eviction moratoriums, Trump’s policies created significant opportunities and challenges for property owners and tenants. Additionally, as Trump remains a prominent political figure, his past and proposed real estate policies continue to influence debates over property rights, tax incentives, and tenant protections.

This article explores the key real estate-related policies enacted under Trump’s presidency, their impact on Pennsylvania landlords and renters, and potential future shifts should similar policies be reintroduced.

Key Takeaways for Pennsylvania Landlords and Renters

1. Landlords benefited from tax incentives under Trump’s policies, such as the 20% pass-through deduction and 1031 exchanges, reducing taxable rental income.
2. Renters saw mixed effects, with pandemic eviction protections providing short-term relief but federal fair housing rules being scaled back.
3. Future real estate policies could continue to favor property investors, while affordable housing and tenant protections may depend more on state and local governments in Pennsylvania.

Check out also our article on: Key New Laws in Pennsylvania Affecting Landlords, and Renters (2025 Edition)

Trump-Era Tax Reforms and Real Estate Incentives

The Tax Cuts and Jobs Act (2017)

One of the most influential pieces of legislation affecting real estate was the Tax Cuts and Jobs Act (TCJA) of 2017. The law significantly altered tax structures for property owners and investors, introducing both benefits and limitations:

• SALT Deduction Cap: The TCJA capped the State and Local Tax (SALT) deduction at $10,000, limiting the amount homeowners could deduct for property and state taxes. This was particularly impactful for property owners in high-tax areas of Pennsylvania, such as Philadelphia’s suburbs.
• 1031 Like-Kind Exchanges: The act preserved the 1031 like-kind exchange, allowing real estate investors to defer capital gains taxes when swapping investment properties, benefiting landlords looking to expand portfolios.
• 20% Pass-Through Deduction (Section 199A): Many landlords became eligible for a 20% deduction on qualified rental income, reducing tax burdens for those operating rental properties as businesses.
• Opportunity Zones: The TCJA created Opportunity Zones to incentivize investment in economically distressed communities by offering capital gains tax deferrals. Pennsylvania designated numerous Opportunity Zones across the state, from Erie to Philadelphia, drawing millions in redevelopment funding.

These tax incentives largely favored property investors and developers, making it more attractive to expand rental holdings. However, for individual homeowners, the SALT cap increased tax liabilities, particularly in regions with high property taxes.

Deregulation and Housing Policy Changes Under Trump

Loosening of Fair Housing Rules

Trump’s administration rolled back several federal housing regulations in favor of local control:

• The Affirmatively Furthering Fair Housing (AFFH) rule, which required local governments to address housing segregation, was suspended and later repealed.
• Trump framed the repeal as protecting suburban communities from federal overreach, reducing pressure on municipalities to alter zoning laws for affordable housing.
• While this meant fewer regulatory burdens for landlords, it also slowed efforts to increase housing access for lower-income renters in Pennsylvania.

Changes to Fair Housing Enforcement

• The administration sought to narrow the “disparate impact” rule, making it harder for tenants to prove discrimination based on policies that had unequal effects.
• Courts blocked the proposed change, but the move indicated a pro-landlord regulatory stance.
• Pennsylvania landlords benefited from fewer compliance hurdles, while renters found it harder to challenge indirect discriminatory practices.

Rental Protections and Pandemic Measures

Eviction Moratorium and Tenant Relief

• The CARES Act (March 2020) included a 120-day eviction moratorium for tenants in federally backed properties.
• Later, the CDC issued a nationwide eviction ban, preventing landlords from evicting tenants for nonpayment.
• While this offered immediate relief to renters, it left many Pennsylvania landlords unable to collect rent for months, leading to financial strain.
• Pennsylvania distributed over $1 billion in rental assistance, helping both landlords and tenants recover from pandemic-induced hardships.

Future Real Estate Policies: What to Expect

If Trump-Style Policies Return

• Tax Cuts Extended: Many of the tax benefits introduced under the TCJA, such as the pass-through deduction and Opportunity Zones incentives, are set to expire in 2025. If reinstated, they would continue to benefit Pennsylvania’s rental property owners.
• More Deregulation: Trump’s proposals for further loosening zoning laws and reducing construction restrictions could make property development easier, potentially increasing Pennsylvania’s housing supply.
• No Federal Rent Control: Unlike some Democratic proposals to introduce nationwide tenant protections, Trump-aligned policies would likely prioritize landlord rights, maintaining a free-market rental structure.

As Pennsylvania’s rental market continues evolving, landlords and tenants should stay informed on legislative changes that affect their rights and financial interests. Whether Trump-inspired policies return or a different approach takes hold, understanding past real estate regulations can help property owners and renters prepare for the future.