Unless you've been living under a rock, you know the presidential election is next week. (Consider this your reminder to vote on Tuesday! 🇺🇸)
Lately, it seems every conversation turns to election talk. Among real estate investors, I keep hearing the same thing: "I'm going to wait until after the election to invest in anything."
I get it. With the endless stream of political ads and heated debates, it feels like everything depends on next week's outcome.
But for real estate investors, this wait-and-see approach is misplaced. Here's why:
Presidential Impact Is More Limited Than You Think
The White House's influence on real estate is narrower than most investors realize. Let's look at what presidents can actually affect:
Tax Policy
Sure, presidents can push for tax changes. Trump’s 2017 tax cuts brought us opportunity zones and 100% bonus depreciation – nice perks, but they didn't reshape real estate fundamentals.
What about 1031 exchanges? They're not going anywhere. Politicians on both sides use them personally, making elimination unlikely.
Interest Rates
Yes, presidents can voice opinions about the Fed. But that's about it.
Interest rates follow economic conditions, not presidential preferences. Presidential opinions rarely translate to real-world rate changes.
Housing Policy
Different administrations prioritize housing differently, creating targeted opportunities. But these rarely affect the broader market.
Smart investors find opportunities regardless of which party holds power.
Why Big Changes Aren’t Likely
Our government is built to resist dramatic shifts. That famous "gridlock" in Washington? It's a feature, not a bug.
The founders designed a system where major changes need widespread agreement across government branches. This makes sweeping policy changes extremely rare.
What Actually Drives Returns
While election news dominates headlines, three factors truly drive real estate success:
Population migration patterns
Market supply and demand
Local economic growth
Right now, we face a significant housing shortage. Recent apartment construction is slowing, pointing to likely rental shortages ahead. This will impact your returns far more than any election outcome.
The Bottom Line
Don't let election anxiety paralyze your investment decisions. The real estate market doesn't pause for politics, and neither should you.
Focus on what truly matters: investing in markets where people are moving and housing is needed. While presidential policies can create pockets of opportunity or stress in certain locations, they rarely override market fundamentals.
These fundamentals have always been the key to successful real estate investing, and the outcome of the election isn’t going to change that.