Bernie Saunders as President? - Impact on housing market?

Question

What are people's thoughts on the impact of a Sanders's Presidency on the housing market? Also, where might there be opportunities? (Excuse typo in his name)

• From his website:
• End the housing crisis by investing $2.5 trillion to build nearly 10 million permanently affordable housing units.
• Protect tenants by implementing a national rent control standard, a “just-cause” requirement for evictions, and ensuring the right to counsel in housing disputes.
• Make rent affordable by making Section 8 vouchers available to all eligible families without a waitlist and strengthening the Fair Housing Act.
• Combat gentrification, exclusionary zoning, segregation, and speculation.
• End homelessness and ensure fair housing for all
• Revitalize public housing by investing $70 billion to repair, decarbonize, and build new public housing.

Account Closed · Answer

From a landlord perspective:

I looked at that link, a lot of that isn't so bad as long as you are running a fair business.. No evictions for retaliatory reasons, section 8 compensation at market rates.. I can't discriminate on source of income now, but I also am not forced to accept section 8 vouchers. I'm not a slumlord so I don't imagine my tenants creating a 'tenants union' against me. There are already legal aid attorneys available for tenants being evicted, so giving them representation wouldn't change anything.

The rent control I don't like, and I will need to be able to apply my own fair and legal screening process to pick lowest risk tenants.

Otherwise, I think it will drive a lot of investors out, and that likely really would lower housing costs. Especially if the giant hedge funds (Eg, the ones buying up my city) slow down or stop.

It would also be a fantastic opportunity to snap up good deals and expand, as long as I can keep BRRRRing.

Ryan Moyer · Answer

Seems like such a longshot in terms of him winning the presidency and then actually getting this stuff passed through congress and then it actually having any real effect on the housing market. I can't imagine worrying too much and changing your strategy right now based on so many what ifs.

Russell Brazil · Answer

Moderator Note: Tread carefully on this topic. Political discussions are not permitted on the forums. If this veres off into politics the thread will be removed.

Joe Splitrock · Answer

Scary.

Mary M. · Answer

I cant see any of that actually affecting decent landlords that are not taking advantage of their tenants. And the investment capital would be great if it happened. (Keep construction workers working longer, subsidize affordable housing etc)

Rent control is not hideous as long as it allows a range of increases - in Oregon its capped at apprx 9% this year.

Where these policies can hurt investors is those that have older buildings that want to evict and renovate. They can not evict for no cause nor can they raise rents more than 9%. This really stalls out selling older bldgs at crazy pro forma driven prices. The takeaway is to raise your rent every year - i raise mine apprx 3-5%.

As usuall people with no experience with given proposed policies over react and say they will sell. This results lots of buying opportunities for the rest of us ;). Soooo.....adapt to the new policies and carry on!

John Teachout · Answer

I don't expect to see those platform items actually implemented but if things were actually going in that direction, I'd be divesting properties. All of them.

Russell Buxton · Answer

Most certainly not poised as a political stunt, but after reading my post - I can see how it can be misconstrued. Wondering where the opportunity might be or the risk. Seems that an expansion of Section 8 definitions might lead to stronger returns for Class C properties?

Bernie Saunders as President? - Impact on housing market?

Bernie Saunders as President? - Impact on housing market?

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