Investor Intel: Election Edition
American voters spoke loud and clear this week, electing a new president and passing several state-specific measures. While the stock market dropped sharply at first, it has since rallied sending 10-year Treasury yields above 2% for the first time in nearly a year.
In terms of what a Trump presidency means for the housing market – only time will tell, as housing policy wasn’t much of a topic of discussion during the campaign season. Housing experts however are speculating about both housing policy and industry regulation.
Redfin Chief Economist Nela Richardson said, “Where people live affects their job opportunities, the quality of the schools their kids attend, and in turn, the economic mobility and productivity of our country and its citizens. As a country, we need to enter a new chapter in housing policy, one that disrupts old ways of thinking and embraces a path of inclusionary growth and shared prosperity. America’s electorate requires nothing less.”
Decreased regulation across a number of industries is to be expected, but too much deregulation in housing – an industry still recovering from the mortgage crisis – has some worried.
HousingWire reporter Sarah Wheeler asks, “Does this mean a return to the Wild West days of mortgage finance? What will motivate companies to do what’s best for consumers when no one is holding them accountable? If you’re a public company, is it even right to spend shareholder dollars to fulfill compliance obligations that will no longer result in huge fines?”
These and other questions are likely on the minds of single-family rental investors. After all – would an increase in home buying and rising rates signal an end to the boom times of rental demand consistently outpacing home purchases? Or can investors rely on Millennials and Boomers to continue to demand flexible housing in both suburbs and urban centers?
Only time will tell.
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