The Rising Momentum in Housing and Energy Sectors Amid 2026 Market Optimism

The U.S. housing and energy markets are experiencing a surge in momentum as Trump-era policies reshape regulatory and financial landscapes. With 2026 shaping up as a pivotal year for sector rotation, investors are increasingly turning to real estate and nuclear energy, driven by policy tailwinds that prioritize affordability, energy security, and industrial competitiveness. This analysis explores how Trump's aggressive reforms and targeted investments are fueling gains in companies like Opendoor and Nuscale, and why these sectors warrant continued attention.

Housing Reforms: A Tailwind for Real Estate Innovation

The Trump administration's 2025 housing agenda, described as the "most aggressive housing reform plans in U.S. history", is poised to catalyze a supply-side revolution. By streamlining regulatory approvals for new developments and incentivizing states to reduce barriers to construction, the administration aims to address chronic housing shortages and stabilize prices. These reforms align with a broader strategy to curb institutional home-buying-a move that has already triggered mixed reactions in the market. For instance, Opendoor's stock surged after-hours in late 2025 as management signaled confidence that the administration's push to limit institutional buyers would not disrupt its business model.

The administration's focus on mortgage affordability further amplifies opportunities. A proposed plan to drive down mortgage rates through bond reforms could stimulate demand for home purchases, benefiting real estate platforms that facilitate rapid transactions. Opendoor, which leverages technology to streamline home buying and selling, is uniquely positioned to capitalize on this dynamic. Its ability to adapt to regulatory shifts-such as the administration's emphasis on deregulation-suggests resilience in a market where speed and efficiency are paramount.

Nuclear Energy: A Strategic Bet on Long-Term Resilience

In the energy sector, Trump's emphasis on "American energy dominance" has redirected federal resources toward nuclear power and critical mineral supply chains. The Department of Energy's (DOE) FY 2026 budget, requesting $46.3 billion in discretionary funding, reflects this pivot. While non-defense energy programs face steep cuts, nuclear energy receives a significant boost, including $750 million in credit subsidies for small modular reactors (SMRs) and $2.7 billion in contracts for domestic uranium production.

NuScale Power, a pioneer in SMR technology, stands to benefit immensely. The company's 77 MWe module design, now approved by the Nuclear Regulatory Commission, has secured partnerships with entities like the Tennessee Valley Authority and ENTRA1 Energy for up to 6 GW of deployment. Trump's executive order in May 2025, aiming for 300 GW of net new nuclear capacity by 2050, further underscores the sector's potential. With the administration streamlining licensing processes and prioritizing SMRs for data centers and industrial applications, NuScale's market positioning appears robust.

The DOE's focus on industrial competitiveness also plays to NuScale's strengths. By reducing reliance on foreign critical minerals and promoting domestic production, the administration is creating a favorable environment for companies that integrate energy and manufacturing. NuScale's alignment with these goals-particularly its potential to power energy-intensive sectors-positions it as a key player in the next phase of the energy transition.

Strategic Sector Rotation: Policy-Driven Opportunities

The interplay of housing and energy reforms highlights a broader trend: sector rotation toward industries directly influenced by policy. Investors seeking to capitalize on this momentum should consider the following:

1. Real Estate Tech: Companies like Opendoor are well-positioned to benefit from streamlined regulations and mortgage rate reductions. Their agility in adapting to policy shifts-such as the administration's focus on deregulation-makes them attractive in a market where speed and scalability are critical.
2. Nuclear Energy: With the DOE's budget prioritizing SMRs and uranium production, NuScale and similar firms are likely to see sustained demand. The administration's emphasis on energy security and affordability further reduces downside risks, making nuclear a defensive yet high-growth play.

Conclusion: A Policy-Driven Outlook for 2026

As 2026 unfolds, the Trump administration's dual focus on housing affordability and energy security is creating a fertile ground for sector-specific outperformance. For investors, the key lies in aligning portfolios with policies that directly enhance market dynamics. Whether through real estate platforms leveraging regulatory tailwinds or nuclear firms capitalizing on federal funding, the opportunities are clear. With policy momentum accelerating, these sectors are poised to remain central to the U.S. economic narrative in the year ahead.