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As the 2024 election approaches, uncertainty is definitely in the air. But while most voters are focused on the key talking points from both Trump and Harris, here at LandCentral, we’re paying close attention to potential changes in the real estate policies. And you should too! While we can’t predict the future, here’s a breakdown of what to expect and how these changes might impact the market:
Donald Trump’s Real Estate Policy Vision
1. Deregulation and Tax Incentives
Donald Trump’s previous term highlighted a strong emphasis on deregulation and tax incentives for businesses. If re-elected, Trump is likely to continue his push for reducing regulatory burdens on real estate developers and investors. This could mean streamlined approval processes for new developments and fewer restrictions on zoning laws. Additionally, Trump’s administration might extend or enhance tax incentives like Opportunity Zones, which aim to stimulate investment in underserved areas.
PROS – Tax Incentives often attract new investments in underserved areas, which could boosts development, create jobs, and improve local infrastructure.
CONS – Deregulation typically faces opposition from local government and community groups concerned about unchecked development, leading to conflicts over zoning laws, community planning, and legal battles.
2. Infrastructure Investment
A second Trump term may see renewed efforts to invest in infrastructure. Improved roads, bridges, and public transit systems can have a significant impact on real estate values, especially in suburban and rural areas. Increased infrastructure spending could boost property values and open up new development opportunities.
PROS – Increased infrastructure leads to higher demands for real estate in that area, boosting property values all around.
CONS – A byproduct of increased infrastructure is often Urban Sprawl, where developing areas grow too fast putting a strain on resources and leading to traffic congestion and loss of green spaces.
3. Focus on Homeownership
Trump has expressed support for policies that encourage homeownership, such as potentially increasing the standard deduction and promoting first-time homebuyer programs.
PROS- Millennials and Gen Z finally get to own a home!
CONS – Homebuyer programs often lead to a higher demand for residential properties, which the nation has already seen a shortage of inventory for the current buyers in the market.
It’s worth noting, under Trump’s proposed policies, there’s also concern for the environment. Deregulation can lead to reduced environmental oversight, which may have negative consequences. Less stringent environmental regulations might result in increased pollution and environmental degradation, potentially leading to long-term sustainability issues. Developers might face backlash from communities concerned about environmental impacts.
Kamala Harris’s Real Estate Policy Vision
1. Affordable Housing Initiatives
Kamala Harris has made affordable housing a central part of her platform. If elected, she is likely to champion policies aimed at increasing the supply of affordable housing, such as expanding funding for low-income housing programs and incentivizing developers to include affordable units in their projects.
PROS – Addressing the affordable housing crisis could make homeownership and rental options more accessible for low and middle class families.
CONS – Incentives for including affordable units might not be sufficient to offset the costs for developers, potentially leading to fewer new projects or increased costs for new housing.
2. Climate Resilience and Sustainability
Harris has a strong focus on climate change and sustainability. Her administration may implement stricter regulations on new construction to ensure that buildings meet high environmental standards. This could involve promoting green building practices and incentivizing retrofits for existing properties to improve energy efficiency.
PROS – Reduces environmental impact overall while increasing long-term market values and market stability.
CONS – Stricter environmental regulations could impose additional costs and complexities to developers, which would then be passed on to the buyers and renters on the final price.
3. Rent Control and Tenant Protections
Under Harris, there might be a push for more robust rent control measures and tenant protection laws. These could include caps on rent increases and stronger eviction protections, which would benefit renters but might create challenges for landlords and real estate investors.
PROS – Provides stability and security for renters, reducing the risk for displacement and contributing to a more balanced community.
CONS – Increases challenges for landlords and real estate investors, limiting their ability to manage properties flexibly. This could lead to less investors and impact overall market dynamics.
4. Urban Revitalization
Harris’s policies may also focus on urban revitalization and community development. By investing in underserved neighborhoods and promoting equitable development, her administration could help stimulate economic growth in areas that have been historically neglected.
PROS – Investment in underserved communities often creates jobs and improves local infrastructure, thus increasing property value and attracting new investments.
CONS – Implementing significant policy changes related to affordability, sustainability, and tenant protections may lead to an adjustment period in the urban revitalization goals. During this time, there could be uncertainty and volatility as stakeholders adapt to new regulations and market conditions, potentially affecting property values and investment strategies.
The Bottom Line
Buyers, sellers, and investors, need to understand these policy differences before they vote. The potential for changes in tax incentives, regulatory environments, and housing affordability could shape your real estate decisions in the coming years. Staying informed about these policy proposals will be key to navigating the evolving landscape of the real estate market.
And always remember, when you’re ready to buy, LandCentral’s got you covered!