Finally, four days after the election, it appears that Biden may be our next President, unless the courts intervene. It appears that Republicans may still control the Senate, after a couple of runoff elections in Georgia. A split government is usually a good thing.
Biden has promised sweeping changes in housing, where he promised to
invest $640 billion over the next 10 years so Americans can have “access to housing that is affordable, stable, safe and healthy, accessible, energy efficient and resilient,”.
He plans to introduce a
tax credit for first-time homebuyers upwards of $15,000, reintroduce sharper regulatory teeth to agencies such as the
Consumer Financial Protection Bureau, alter what he sees as
restrictive zoning laws to increase development, build millions of units of affordable housing, and
cap payments for certain renters.
Like many government programs, the result may be opposite of the desired effect. The first-time homebuyer’s tax credit may increase housing demand, which may increase listing prices, since available inventory is still low. Rental payment caps, if implemented, also usually have the opposite effect. If housing providers cannot charge market rents, they may remove those properties from the rental market, thereby driving up remaining rents. Perhaps Biden’s plan to build millions of units of affordable housing will offset these effects.
Regardless of who is in the White House, housing and mortgage industry experts believe
interest rates will continue to hover near historic lows for the next several years thereby spurring growth.