Currently Reading

How the Biden Administration Might Affect the Luxury Housing Market

Advertisement
Housing Policy + Finance

How the Biden Administration Might Affect the Luxury Housing Market


February 22, 2021
Luxury house
Photo: Tom Merton/KOTO

Politics can have both an indirect and direct impact on the housing market, and with promises to make big changes to the country’s economy, Biden’s plans may very well create a shift in the luxury market. Realtor.com’s chief economist says the strong performance of the luxury housing market in recent years is a result of both low mortgage rates and the performance of the stock market. Realtor.com says that while most of the Biden administration’s housing policies focus on affordable housing, events such as extending the federal eviction moratorium will affect the higher end of the housing market in the future.

“Most of our buyers are extremely wealthy and many of them own lots of property that they rent to tenants,” Mr. Rufo said. “If policies are put in place that reduce their ability to collect rent on multiple properties, that could have a negative impact on their net worth and willingness to upgrade into more expensive properties.”

Another political issue that’s already had a major effect on luxury housing markets is tax reform.

Tax Reform and the Luxury Residential Market
The Tax Cuts and Jobs Act that went into effect in 2018 has several provisions, such as lower tax rates, a higher lifetime estate and gift tax limit, and a higher standard deduction that are set to expire at the end of 2025. Democrats are anticipated to address those expiring provisions and other tax issues eventually.

Read More
 

Related Stories

Building Materials

Lumber Prices Hit Record High, Threatening Housing's Momentum

As lumber prices continue to rise, home builders look for short- and long-term solutions to keep construction (and the economy) moving

Coronavirus Resources and Information

PPP 2.0: Kapitus' Ben Johnston on What Construction Companies Can Expect

The PPP is a great opportunity for small businesses hurt by COVID-19 to obtain much needed capital to pay bills, pay employees, and invest in getting back to business

Housing Policy + Finance

Home Building by the Numbers

The Shinn Group’s long-running Fin-Op analysis, backed by decades of data, offers builders a road map to profitability and a benchmark of performance

Advertisement
Advertisement

More in Category




Advertisement
Advertisement

Create an account

By creating an account, you agree to Pro Builder's terms of service and privacy policy.


Daily Feed Newsletter

Get Pro Builder in your inbox

Each day, Pro Builder's editors assemble the latest breaking industry news, hottest trends, and most relevant research, delivered to your inbox.

Save the stories you care about

Lorem ipsum dolor sit amet lorem ipsum dolor sit amet lorem ipsum dolor sit amet.

The bookmark icon allows you to save any story to your account to read it later
Tap it once to save, and tap it again to unsave

It looks like you’re using an ad-blocker!

Pro Builder is an advertisting supported site and we noticed you have ad-blocking enabled in your browser. There are two ways you can keep reading:

Disable your ad-blocker
Disable now
Subscribe to Pro Builder
Subscribe
Already a member? Sign in
Become a Member

Subscribe to Pro Builder for unlimited access

Lorem ipsum dolor sit amet, consectetur adipisicing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua.