2016 may have left American’s scratching our heads.  Unprecedented historical events such as the Brexit vote, the divided presidential election and the continued low mortgage rates were a big part of the puzzle pieces.

Now we are all left wondering, what will the next 12 months—2017 hold in store for housing?

There are a few hot topics stirring that experts say will have a major influence on the housing market for 2017.

The biggest factor for 2017 is Donald Trump. Trump has spoken of forgiving student loan debt.  Under Trump’s plan, if you are a student loan borrower, your monthly student loan payments would be capped at 12.5% of your income. After 15 years of monthly payments, your remaining student loan debt would be forgiven.

This would be huge in terms of the housing market, as Millennials are outnumbering Baby Boomers, but they have a hard time buying homes because of massive student loan debts that kill their credit scores and keep them unable to save for the down payment.

With or without the student loans, Millennials are also finally jumping into the housing market because of other factors like; getting married, moving in with a partner, planning on having children or simply growing tired of their current living situation.

This leads us to the next trend, folks moving out towards the suburbs.  People are interested in safety, privacy, affordability and more space, which is why so many are planning to relocate to the suburbs, where all of these things are readily available.

2017 will also allow more people access to home loans. Fannie Mae and Freddie Mac will raise its loan limits for the first time since 2006, increasing them to $424,100 for most of the country and to $636,150 for more expensive markets.  According to Redfin, “This change makes it easier for more homebuyers to qualify for a mortgage in high-priced markets.”

There will still be challenges, like a lack of inventory which could drive prices up and a shortage of new construction.  New construction will continue to be slow as a result of a labor shortage.  Given that nearly one in four construction workers are foreign-born, stricter immigration policies from the Trump administration are likely to make the problem worse.”

While predicting how the real estate market will behave is never an exact science, 2017 looks fairly stable.