Harris or Trump – Which Is the Better Choice for Landlords?

With less than two months until the presidential election, many real estate investors are focused on the race and the impact each candidate could have on real estate markets. Unfortunately, discussions on housing and real estate were limited in the only debate they’ve had so far. 

However, the candidates have discussed real estate policies throughout their campaigns. To help investors navigate this election season, here’s a look at where each candidate stands on housing policy and some impacts each could have on real estate investors. 

Harris Housing Policies and Proposals 

Vice President Kamala Harris was more vocal about housing and real estate in the September 10th debate. She raised concerns about affordable housing and outlined a plan to help address this issue. Specifically, she proposes: 

• The creation of 3 million new housing units over the next four years 
• Support for local governments’ “innovative methods” of building affordable housing 
• Tax breaks to incentivize homebuilders to create more starter homes
• Up to $25,000 in down payment assistance for qualified first-time homebuyers. 

In addition to increasing supply, Harris favors increased regulation of institutional investors to keep rental prices from inflating. Specifically, she proposes: 

• Limiting tax breaks for institutional investors who buy large portfolios of single-family homes
• Increasing regulation on multi-family investors
• Prohibiting the use of algorithmic systems to artificially inflate rental prices or reduce the supply of rental units 
• Restrictions on how Landlords determine rent increases

Besides just looking at housing policies, investors are also paying attention to climate change policies. Home insurance rates increased by 34% from 2018-2023, in large part due to climate-related disasters. 

Harris proposes increased federal investments in clean energy sources like solar, wind, and green infrastructure. A Harris administration will support initiatives to combat climate change and support green building practices and energy-efficient developments. 

Trump Housing Policy and Proposals

While former President Donald Trump talked less about housing during the debate, he also acknowledges that affordable housing is a pressing issue. To address this, he proposes: 

• Removing regulations on home building to make development faster and more affordable 
• Opening tracts of federal land for housing developments
• Promoting homeownership through tax incentives 

Beyond addressing affordable housing, here are a few other Trump policies for investors to consider: 

• In 2017, Trump signed the Tax Cuts and Jobs Act, which lowered the corporate tax rate and created Opportunity Zones. He will likely continue this policy and reduce taxes on corporations to boost investment.
• Trump claims that undocumented immigrants are a major cause of rising housing prices. He has promised to ban mortgages for undocumented homebuyers and take a more aggressive approach to immigration policy. 
• Trump is committed to rolling back plans to create a clean energy future. He has promised to remove environmental regulations and promote oil and gas drilling. 

Broadly speaking, Trump favors deregulation and tax cuts to boost development and spur investment. 

What These Policies Mean for Real Estate Investors

For real estate investors, there are pros and cons to each policy. Regardless of who wins, there will be real estate investment opportunities. Investors need to be familiar with each candidate’s policies so they can adjust their investment strategy as needed. 

In addition to this broad takeaway, here are some more tangible takeaways for investors: 

• Corporate and institutional investors will likely benefit from the tax cuts and deregulation Trump proposes. 
• Small-scale Landlords will likely not benefit from these policies and could benefit from Harris’s increased regulation of institutional investors. 
• Investors in areas more heavily impacted by natural disasters and increased insurance costs will benefit from Harris’s approach to clean energy and climate policy. 
• Developers can benefit from each candidate’s initiatives to increase housing units. 
• Investors focused on green building and sustainability will benefit from Harris’s climate approach. 

Tell Us What You Think 

Have additional thoughts about the impact of a Trump or Harris presidency? Share comments below and let us know your thoughts. 

Regardless of who wins in November, there will be opportunities to expand your portfolio and make money through real estate investments. And, as always, we’ll be here to help you every step of the way. 

Visit ezLandlordForms.com to create an account and take advantage of our full suite of property management solutions. Get started today and let us be the partner you need to maximize real estate returns.