Why Real Estate Stocks Took a Hit as Developers Cheered Trump

Investors fear tariffs, deportation and high rates. Builders bet on deregulation and taxes.

A worker outside a home under construction at the Kelley Farms Barbera Homes subdivision in Ballston Lake, New York. — A worker outside a home under construction at the Kelley Farms Barbera Homes subdivision in Ballston Lake, New York.
Photographer: Angus Mordant/Bloomberg

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By Patrick Clark, Prashant Gopal, and Natalie Wong

November 25, 2024 at 12:00 PM UTC

Updated on

November 25, 2024 at 2:57 PM UTC

This article is for subscribers only.

This article is part of the December 14, 2024 issue of Markets.

Will Donald Trump, the property world’s native son, tank the real estate market?

The day after Trump’s reelection, even as builders and landlords personally celebrated his win, investors had a grim answer. Property stocks fell 2.6% that day, making real estate the S&P 500’s worst-performing sector. D.R. Horton, the largest US homebuilder, fell 3.8%. CBRE Group, the commercial real estate services firm, fell 4%, while American Tower, which owns wireless communications infrastructure, fell 7.7%