How the 2024 Election Could Change the Housing Market

The 2024 presidential election could have a major impact on the U.S. housing market. Housing affordability is at the forefront of political debates, with proposed changes such as subsidizing down payments for first-time buyers and reducing regulatory barriers for builders. These policy changes could have a significant impact on home buying and selling decisions, making it critical to stay informed on how the election will shape housing policy.

Election impact on the real estate market

The housing market in the United States is no stranger to the influence of political decisions, and the upcoming 2024 presidential election will be no different. Housing affordability has become a critical issue in recent years as home prices have risen significantly, making it difficult for many Americans – especially younger generations – to enter the market. As the election approaches, potential policy changes could affect the entire real estate landscape, making it important for home buyers, sellers, and investors to understand what may be on the horizon.

Affordability crisis: Competing policy solutions

One of the biggest housing-related issues in the 2024 election revolves around the affordability crisis. Housing prices have risen more than 20% since the last election cycle, putting homeownership out of reach for many potential buyers. Both President Biden and his opponents have recognized the importance of addressing this issue, and housing has become a key issue for both parties. Democrats tend to support policies such as subsidizing down payments for first-time buyers, promoting inclusionary zoning, and funding housing vouchers. These measures are designed to make homeownership more accessible to lower-income and first-time buyers, many of whom have been priced out of the market. On the other hand, Republican proposals are more likely to focus on reducing regulations that limit development, with the goal of increasing housing supply to address affordability through market forces.

Subsidizing down payments for first-time homebuyers

One key policy proposal that has received attention is subsidizing down payments for first-time homebuyers. The average down payment required to purchase a home has reached record highs, creating a significant barrier for younger Americans and families trying to enter the housing market. Subsidizing down payments would aim to reduce this barrier, making it easier for those without substantial savings to transition from renting to owning. Such a policy could potentially increase the number of first-time buyers, thereby increasing demand in certain segments of the market, which in turn could drive price changes. This type of government intervention could help level the playing field for those who have been most affected by skyrocketing house prices in recent years.

Reducing regulatory barriers for homebuilders

Another important factor to consider is the focus on reducing regulatory barriers for homebuilders. Building regulations, including zoning laws, have often been cited as a major contributor to the housing shortage. Restrictive zoning, particularly single-family zoning, limits the availability of affordable housing by limiting the types of properties that can be developed in certain areas. Reducing these regulatory barriers would make it easier for developers to build more units, especially multifamily housing, which could alleviate some of the supply constraints that have led to the affordability crisis. Republicans are likely to push for regulatory reform that could lead to an increase in housing supply, potentially easing the demand pressures that have driven up home prices.

Regional disparities and local policies

Political discourse also highlights regional disparities in the housing market. In places like coastal Florida, where housing prices soared during the pandemic, there is now significant potential for a price correction due to increased climate risks and insurance costs. In contrast, more affordable and climate-resilient areas, such as Rochester and Albany in New York, are seeing price increases as people seek stability and value. These regional dynamics are also influenced by political priorities, as some states pursue zoning reform and affordable housing projects more aggressively than others. Local governments, regardless of the federal administration, are expected to continue to play a significant role in addressing housing affordability, with initiatives such as land value taxes to encourage development in key urban areas.

The role of broader economic policies

Another important aspect that could shape the housing market is the broader economic policies that emerge from the election. The Federal Reserve’s interest rate decisions, which are often influenced by the political climate, directly affect mortgage rates, which in turn affect the affordability of homeownership. If the newly elected administration focuses on controlling inflation and stimulating economic growth, there may be indirect effects on mortgage rates that could either help or hurt potential homebuyers depending on the direction of policy. For example, if rates drop to the 5% range, as some economists predict in an optimistic scenario, it could provide a much-needed reprieve for buyers, making homeownership more affordable compared to the historically high rates of recent years.

Stay informed to make smart decisions

The 2024 presidential election will undoubtedly have a significant impact on the U.S. housing market. With both major parties outlining different approaches to addressing the housing affordability crisis – from providing direct financial assistance to first-time homebuyers to reducing building regulations – the outcome of the election could set the tone for the housing market for years to come. Understanding these potential changes can help homebuyers and sellers make informed decisions as they navigate an evolving market. As the election approaches, staying informed about policy proposals and understanding their impact will be critical for anyone involved in the real estate market.

Ralph Schiavone

HLS Group, Inc.

1611 Pomona Road, suite 207 Corona, CA 92878

Email: rschiavone@hlsgroupinc.com

Phone: (714) 315-0027

HLS Group, Inc.; Ralph Schiavone-Broker and President is your full-service real estate agency; specializing in all aspects of residential real estate purchase, sale with over 30-years’ experience and extensive knowledge and understanding of real estate finance. We are Certified Probate Real Estate Specialists, short-sale experts, REO-agent certified and fully MLS compliant. HLS Group, Inc. and Ralph Schiavone offer a one-stop opportunity for prospective buyers and sellers to gain information about the purchase/sale process from identifying a property for purchase to placing a property for sale. We negotiate with confidence on behalf of our clients and work seemlessly with finance professionals during the purchase/sale process.

The markets of Southern California are uniquely dynamic with many opportunities to both purchase or sell a home. The biggest keys to success are patience and appropriate market position. Know your market and how you fit within it. That’s where using Ralph Schiavone and the agents at HLS Group, Inc. will serve you best, by providing you the tools for informed decision-making.

Currently inventory is somewhat tight and communication is key to ensuring timely property opportunities. We at HLS Group, Inc. pride ourselves on strong and comprehensive communication: from the initial interview through close of escrow and thereafter. At HLS Group, Inc. a successful transaction is defined as facilitating the client’s property desire, in the area/neighborhood they wish to live, while using the most appropriate financing strategy, for the best outcome possible.

Customer service is key at HLS Group, Inc. Our relationship and support do not end once your purchase/sale is completed. We’ve built our reputation as a reliable resource in our community and are available for you in the future whenever you feel we can be of service. We look forward to working with you.