It’s election season and if you want politics, go to Fox news, CNN, MSNBC, etc. If you want an idea what may happen in real estate candidate by candidate, you’re in the right place. Find out what may happen when one of these people gets elected here on Glick Watch.
Jill Stein (Green Party)
I’ll start with Jill Stein. Stein is a candidate from the Green Party. Her overall campaign is to increase the “Green Trend”. This means enacting tax credits for installing solar energy, encouraging US citizens and companies to compost and recycle, conserving water, and lowering greenhouse gases. What does this mean for you and me who own land? Prices will increase because of the cost of installing these items in the short run. In the long run, eventually, these items may be the norm and costs will come way down.
Evan McMullin (Independent)
Gary Johnson (Libertarian Party)
For Evan McMullin and Gary Johnson if we examine their campaigns together, they start to look really similar. They are both conservatives in the sense that they want a smaller government. This can affect us through the CFPB. They regulate all the banking, mortgage and finance activities. Possible elimination of many rules and restructuring of the CFPB which could cause mortgage fraud to return and therefore reduce property values and increase interest rates.
Donald Trump (Republican Party)
The Republican party candidate, Donald Trump, has won and lost billions in real estate. Who would he appoint at the treasury, Housing and Urban Development committee, the CFPB and the Federal Reserve? No one knows! He doesn’t have a political background so that means he may not understand or want to understand how the process operates.. What could he propose? My best guess? tax credits, faster depreciation and or Fed policy to lower rates.
However a study conducted by Zillow found that 100 Zillow economists agreed Trump will have a negative impact on the housing market if elected. One reason will be his stricter immigration policies which could end up hurting the home-building industry. A report from John Burns Real Estate Consulting in 2015 found that “increasingly restrictive immigration policies have reduced the number of Mexican-born construction workers in the U.S. by about half a million. This year, Homebuilders said that cost and availability of labor is their No. 1 problem they expect to face this year.”
With Trump’s proposed restrictions on immigration, cost-effective labor is less available and thus homebuilder’s will continue to face high construction costs.
Hillary Clinton (Democratic Party)
For Democratic candidate, Hillary Clinton, she has an extensive track record as Secretary of State, Senator from New York and former first lady. If she wins the election what will happen to the real estate industry? . A study by 100 Zillow economists expected the overall expected impact for home value growth and finance reform is positive. The expected impact for overall economic outlook is neutral. Clinton clearly has her eyes on home growth with $25 billion of her proposed $125 billion Economic Revitalization Initiative targeted towards underserved households.
The truth is, NOTHING. She’ll change very little from President Obama’s policies. The Treasury, HUD, and CFPB’s visions will all stay the same. OK, maybe some minor tweaks but nothing dramatic.
There we have the potential effects on the housing industry from each presidential candidate. Have comments about all of this? Share your thoughts in the comments section below and stay tuned for more real estate news coverage on Glick Watch.
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