Do Elections Affect The Rental Housing Market?
As we enter an election year, there is an anticipation in the air. Some people want things to stay the same, while others are ready for change. Regardless of where you stand, we can all agree that the time before and after a primary election just feels different. It changes things. It is a time of significant decision making, and its impact reaches much further than Washington. One place that is consistently impacted by election year is the rental housing market.
Elections Cause People To “Wait And See” Before Buying Rental Property
Historically, there has been a decline in home sales during an election year and an increase in home prices. This may be because election years can be a time of uncertainty. When we are in a state where we’re unclear about who our nation’s leader is going to be, and what their policies will mean for jobs and the economy, It can cause homebuyers to hesitate on moving and buying/renting a new home. People typically wait to buy a house until after an election, when they have a better understanding of how the new leader’s politics and policies will affect them financially.
The Election Becomes The Focus, Not Real Estate
Another reason that the housing market, in general, is impacted during an election year is that people aren’t really thinking about housing prices. With a steady influx of poll numbers, interviews with candidates, and debate recaps, the media is saturated with aspects of the election instead of real estate trends. Individuals who are concerned about the results of an election may put moving to a new home on the back burner.
The Rental Housing Market Before The Election
The housing market is impacted in different ways before and after the election. Before the election:
- People are in a wait-and-see mindset; they are putting big life decisions on hold until the election is finalized.
- Developers often put projects on hold in case a new governmental regulation will significantly impact the way they do business.
- Buyers and sellers may also hold off making significant real estate transactions in hopes that if their desired candidate wins the election, the Corona housing market will improve, and it will work to their advantage.
- Historically, housing prices typically go up ( albeit very slowly) during a presidential election year.
The Housing Market After The Election
After the election, buyers, sellers, and renters can move forward with the final results and make a decision based on them. They can decide whether or not to buy an additional Menifee investment property, hire a property management company, or make upgrades to their existing Investments.
It can be challenging to calculate exactly how the housing market changes after the election. Most candidates run a campaign based on the promises of lower taxes and a boosted economy, but neither of these are guaranteed.
Politics Change, Benefit National Doesn’t
Thankfully, an election year doesn’t impact the housing market as much as people once thought. It may cause Murrieta and Temecula buyers and sellers to push pause on making any significant real estate base decisions.
If 2020 is your year to buy an investment property, contact Benefit National today. This election year could mean significant changes for our country. But one thing that never changes is our commitment to unparalleled customer service and exceptional full-service Wildomar property management services.