Scott Bessent Confirmed as Treasury Secretary: What It Means for R.E Investors.

[Luis Fajardo]

Scott Bessent has officially taken the reins as the 79th Treasury Secretary, and his plans are already making waves. Known for his sharp financial expertise, Bessent has introduced an ambitious “3-3-3” economic plan aimed at reshaping the U.S. economy. The goal? Reduce the federal budget deficit to 3% of GDP, achieve real GDP growth of 3%, and increase U.S. oil production by 3 million barrels a day by 2028.

For real estate investors, these plans could mean major changes—and opportunities. As the economy shifts, there will be new ways to grow your portfolio, but success will require staying nimble and informed.

Bessent’s commitment to cutting the federal deficit involves a mix of spending cuts and revenue adjustments, which could directly affect government-funded housing programs and infrastructure investments. While some reductions might increase short-term costs for investors, a more balanced budget could stabilize inflation and interest rates over time. That kind of stability can make long-term real estate investments much more predictable. Historically, real estate markets perform best when the economy is stable, with steady mortgage rates and consistent demand for housing and commercial properties. Investors should keep an eye on government spending in housing to understand how these changes might shape local markets.

At the same time, Bessent’s focus on driving GDP growth could bring a surge of opportunities. Economic growth means higher household incomes, better employment rates, and stronger consumer confidence, all of which directly fuel demand for real estate. Investors might want to start exploring smaller cities or less-saturated markets poised for population and business growth. These areas could see a rise in demand for multifamily housing, retail centers, and industrial spaces as local economies expand.

Another key piece of Bessent’s plan is increasing domestic oil production. By adding 3 million barrels a day by 2028, energy costs are likely to drop. For real estate investors, that means lower operational costs for managing properties and cheaper construction expenses. Reduced energy costs also leave more room in household budgets, making housing—whether rented or owned—more affordable for tenants and buyers. Areas near oil production hubs could experience economic booms, creating localized opportunities for real estate investments.

Beyond these broader economic initiatives, Bessent has been vocal about extending or even expanding the 2017 Tax Cuts and Jobs Act (TCJA). This is great news for real estate investors, as the TCJA introduced several tax benefits that directly supported the industry. Key provisions like bonus depreciation, the 20% pass-through deduction, and 1031 exchanges have saved investors thousands of dollars each year. In fact, the average real estate investor saved $19,000 annually per property under the TCJA. If Bessent follows through on expanding these tax incentives, it could make real estate an even more attractive and lucrative investment option.

Real estate accounts for nearly 18% of U.S. GDP, so any shifts in fiscal or economic policy will ripple across the industry. Stabilizing inflation could create more predictable home prices and rental yields, but affordability challenges—especially in urban markets—remain a concern. At the same time, economic growth could drive demand for commercial spaces in thriving industries like technology, logistics, and renewable energy. Infrastructure investments, even with Bessent’s focus on fiscal restraint, could also unlock potential in underdeveloped areas, fueling demand for both residential and commercial properties.

For investors looking to succeed in this evolving landscape, it’s all about staying proactive and flexible. Take full advantage of available tax incentives by working closely with a tax professional. Look to high-growth markets that stand to benefit from Bessent’s plans, especially areas tied to increased oil production or infrastructure expansion. And, perhaps most importantly, make sure you have access to flexible financing options that can help you adapt to new market conditions.