{"id":4398,"date":"2016-11-15T13:23:07","date_gmt":"2016-11-15T18:23:07","guid":{"rendered":"https:\/\/www.renthop.com\/content-manager\/?p=4398"},"modified":"2016-11-15T13:24:28","modified_gmt":"2016-11-15T18:24:28","slug":"how-trump-will-affect-your-rent-8-ways-his-presidency-may-affect-you","status":"publish","type":"post","link":"https:\/\/www.renthop.com\/blog\/how-trump-will-affect-your-rent-8-ways-his-presidency-may-affect-you\/","title":{"rendered":"How Trump Will Affect Your Rent? 8 Ways His Presidency May Affect You!"},"content":{"rendered":"

The Trump election upset has already caused volatile movements in the stock, bond, and commodities markets.\u00a0 However, mortgages, real estate taxes, condo dues, and rent payments hit closer to home! We discuss eight ways a Trump presidency is likely to affect apartment rental prices, both nationwide and in your specific neighborhood.<\/p>\n

\"Donald<\/a>
Interest Rates & Rents Up!<\/figcaption><\/figure>\n

1.)\u00a0 Interest Rates Will Rise \u2013 Fewer Real Estate Transactions<\/h2>\n

We need to start with the big one.\u00a0 In the one week since the election, interest rates have jumped sharply up at a pace not seen in years.<\/strong>\u00a0 As we know, interest rates impact almost everything in real estate, including how much the owner must pay to also carry a mortgage, and how much buying power potential purchasers can bring to the table. When looking at the rent vs buy tradeoffs, renting will likely seem better as interest rates rise.<\/p>\n

Also, take note of whether your city has more all-cash buyers vs. finance buyers.\u00a0 The more leveraged the city, the more impactful interest rates will become.\u00a0 Leveraged cities tend to correlate with the same cities that saw massive foreclosures in 2009 and beyond:\u00a0 Vegas, Phoenix, Miami<\/a>, Detroit, are examples. New York City<\/a> tends to be more robust<\/strong>, with co-op boards that mandate stricter maximum loan-to-value requirements and see many more all-cash buyers.<\/p>\n

2.)\u00a0 Inflation Forecasted \u2013 Higher Prices and Sticky Wages<\/h2>\n

Trump has proposed many tax cuts and spending projects, and so far, little concrete plans to balance the budget increase. We can expect the nominal rent to go up<\/strong>, and as usual, wages are a bit stickier when the prices of everything else is increasing.\u00a0 Bottom line, you are unlikely to get a raise at work that properly match your rent, healthcare, insurance, and food costs, so plan ahead!<\/p>\n

\"Illustration<\/a><\/p>\n

3.)\u00a0 Closing Tax Loopholes?<\/h2>\n

Trump has stated multiple times he intends to close many outdated tax loopholes. The big one on real estate investors\u2019 minds are of course deduction of mortgage interest, deduction of real estate taxes, capital gains deferment, and favorable depreciation schedules. If these benefits go away, real estate investing will generally be less attractive, meaning fewer buyers for your landlord\u2019s condo (generally your rent will go up if the landlord believes she could sell the home and earn more).<\/p>\n

4.)\u00a0 Immigration Hubs at Risk?<\/h2>\n

How much does your city rely on immigrants to keep the ecosystem running?\u00a0 Many of us live in vibrant communities filled with foreign nationals working or studying on a visa.\u00a0 Will the H-1B Visa, for example, stay intact through a Trump presidency?\u00a0 Even if it does, will we still attract the world\u2019s top talent given the administrations tough stance on doing as much as possible within our borders?<\/p>\n

Fortunately, Trump has suggested it is a great advantage to attract the world\u2019s top talent to our country, but we expect the F-1 and H-1B program to go through major changes (and related OPT program for internships).\u00a0 Cities likely to be most impacted include startup, tech, and college hubs: the entire SF Bay Area, New York, Boston<\/a>, and Seattle.<\/p>\n

Learn more:<\/p>\n