fbpx
Skip to content

growinnhomes

Grown Inn Homes logo

What does election year do to the real estate market?

Caitlin Espejo

Author

Election year is coming right up on us. In no time, we will be right at the voting polls again casting our vote, patiently watching the news to hear who will be the new president. Everyone who owns a property will want to stay informed about the current presidential elections, whether or not they are political observers. Elections for president can result in significant changes in the federal government that have an effect on every industry, including real estate. In this blog, we will talk about some of the ways election year affects the real estate market.

Election years can have a variety of effects on the real estate market, but it’s crucial to keep in mind that these effects might differ based on a number of circumstances, including the type of election (for example, presidential, midterm), the general economic environment, and local market conditions. Here are a few typical ways that election years might affect the real estate market:

Uncertainty:
As voters and investors consider potential policy changes that can impact the economy and real estate market, elections frequently carry with them a certain amount of uncertainty. Uncertainty can cause buyers and sellers to act cautiously, which could slow down market activity or cause a drop in sales. Major financial choices, like purchasing or selling a property, might be postponed by some people until after the election, especially if they are unsure or concerned about how the outcome of the election might affect their financial condition.

Interest Rates:
Interest rates can be influenced by government policy and the Federal Reserve. The central bank may change interest rates in an election year to boost or stabilize the economy, which may have an impact on mortgage rates. While higher interest rates might have the opposite impact, lower rates can increase affordability and boost demand.

Housing Policy:
Particularly in the case of presidential elections, discussions and prospective changes in housing policy can come about. Candidates may put up proposals for laws governing mortgage lending, tax breaks, rent regulation, or affordable housing initiatives. The results of the election and any ensuing policy adjustments may have an effect on the real estate market.

Investor Behavior:
Based on election results and prospective modifications to tax laws or regulations, real estate investors may alter their plans. Changes to the 1031 exchange regulations or capital gains taxes, for instance, may have an impact on investor choices.

It’s important to note that while elections can influence the real estate market, they are just one of many factors at play. The performance of the real estate market is also heavily influenced by factors such as the economy, job growth, interest rates, and dynamics of housing supply and demand. The precise effects of an election year can also differ greatly depending on the conditions of that year and the policies adopted by the elected officials.

If you or someone you know is interested in selling their multifamily property, please do reach out to us. Do not hesitate to give us a call! We are looking for our next multifamily project!

Share Us!