The housing industry is constantly changing. While some people are thankful for those changes, others are not, and the current situation isn’t any different. With the number of changes being made, just about everyone is wondering what the future of our country will look like.
One of the biggest industries people pay attention to is housing. Potential buyers and sellers all over the country wonder how the decisions our leaders make will influence the housing industry.
Let’s take a look at some of the changes that may be in store and what they could mean for homeowners.
Potential Falling Home Prices
Under a newly proposed tax plan, the standard deduction for income tax would double, meaning people could automatically keep more cash from their income. However, this means fewer people may take out mortgages to receive the mortgage interest deduction. If fewer individuals want to buy a house because of these proposed tax breaks, this may make homes cheaper.
A less-expensive home may seem like a benefit to individuals looking to purchase their first home, but for those who are already homeowners, their home dropping in value means they could lose equity. After already investing time and money to increase the value of your home, it can be nerve-wracking to know its value could quickly drop.
However, cheaper homes could mean cheaper rent. For individuals such as students or young professionals who rent instead of buy, this tax plan could benefit them.
A New HUD Deputy Secretary Overseeing Policy
The tax plan isn’t the only part of the housing industry changing under the new administration. A new Housing and Urban Development Deputy Secretary, Pam Patenaude, has recently been nominated. Thankfully, there seems to be a general consensus that Patenaude is a good fit for the job.
As the current president of the J. Ronald Terwilliger Foundation for Housing America’s Families and a previous director of housing policy for the Bipartisan Policy Center, Patenaude has the right experience for the role she’s taking on. She even served as the assistant secretary for community, planning, and development for the Department of Housing and Urban Development under President George W. Bush.
In all honesty, it’s a bit too early to really say where the future of the housing industry is going at the moment. The tax plan still needs to get approval from the House and the Senate, and we will need to wait until then to determine how it will impact the value of our homes.
It’s always important to consider the potential changes that can come from the decisions of a new president. Be sure to keep an eye on these stories whether you’re a renter, a homeowner or you think you may be interested in purchasing property in the future.
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