I am not into politics, so pardon my ignorance.
I have heard that Republican states are better for real estate investing due to things like business friendly, landlord friendly, etc. Is that true?
If a state switches to Democrat or vice versa, does that affect your criteria to invest in a specific state?
I do not think politics has as direct of an impact on real estate profits as your question suggests. Furthermore, your question is probably too broad at the state level. If you were going to invest based on party affiliation it would likely need to be on a county by county basis. In MD for example, Montgomery County sits right next to Frederick County. I would deem Montgomery county a very liberal county while Frederick County is very conservative.
It also depends on your strategy. DC for example is the last place I would want to buy a rental property right now however wholesalers are crushing it there.
In the most general of senses, areas of high Republican concentration may be more landlord friendly and areas of high democratic concentration will be more tenant friendly. However those areas of high democratic concentration by far outpace huge Republican areas in terms of appreciation. One just need to look to east coast liberal cities like Boston, NYC, DC, San Francisco to see the best and most extreme examples of this .
I personally prefer to invest in those areas as I feel the upside by far more than outweighs the downsides of the tenant friendly regulations.
Low unemployment, high wages, low poverty, lots of job growth and population growth. These things are more important than any voting trend.
The logic of some people suggests that Democrat led areas are better for Real Estate investment. That makes sense in places like NYC and SF. However it doesn't take into account places like Detroit.
I strongly believe that any market can be a great place to invest, but that each market requires a different strategy. What works in LA will not work in Milwaukee.
Thanks all. So overall, it seems like state being one way or another doesn't make any difference but a very local strategy should be considered e.g. appreciation vs cashflow (which might be independent of political majority).
It's too much of a generalization to come to any conclusions. Look at IL as a prime example. Illinois will go democratic this election. But if you look at the county break down, you'll see that the majority of the state will be republican except the Chicagoland area. However, the Chicagoland area has such a large population that it basically controls what the state does. So even though Illinois is blue, the majority of the state is more conservative outside of Chicago.
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