While neither presidential candidate will likely impact interest rates, mortgage rules, or prices immediately, their housing plans could steer the market in subtle but important ways and the election season itself impacts the market. Here's how...
Immediate Effects of Election Season
It is typical in a seasonal market like Minnesota to see a less competitive market in the fall and winter, and that effect is amplified in an election year. Potential home buyers get a bit nervous about making a decision as significant as a home purchase during election time. This slowdown creates unique challenges for sellers but can be a prime opportunity for buyers. Historically, home sales dip post-election, but home prices tend to rise soon after.
How Each Campaign Plans to Tackle Housing
The U.S. is short around 4.5 million homes, driving up prices and making affordability a challenge. Both campaigns offer solutions to boost housing supply, but with different approaches. Here’s what they’ve proposed;
The Harris Plan:
Greater support for low- and middle-income families, including a tax credit for building or refurbishing starter homes
$25,000 in down-payment assistance for first-time buyers with strong rental histories
Reduced zoning restrictions for multi-unit developments in cities
Removal of tax benefits for large-scale investors with 50 or more single-family rentals
The Trump Plan:
Deregulation for single-family home builders and developers
Capital gains incentives for housing developers
Tax breaks for families in designated “opportunity zones”
Remember, any plans the winning candidate pursues will take years to pass and impact the market, so quick fixes are not anticipated! Overall, neither candidate is likely to drastically or quickly change circumstances for traditional home buyers or sellers, but hopefully, the outlines of these plans help you understand the proposed solutions that could shape the future of our housing market!
Comments