People are wondering what impact the new president will have on real estate. We can’t predict the future, but we do know quite a bit about President Biden’s plans.
In general, the administration hopes to make owning a home more affordable. One way they hope to accomplish this is by implementing a first-time homebuyer tax credit. This $15,000 credit could be accessed immediately by buyers, so it could be used to help make a down payment on a home.
The administration also hopes to help increase the supply of homes – a big problem in our current market. To do this, they’ll use a variety of tools. They plan to expand the low-income housing tax credit for real estate developers and put $100 billion toward upgrading and building affordable housing. There’s also a plan to provide $10 billion over ten years to expand flexible funding for the Community Development Block Grant, which is a HUD program that funds local development with the goal of creating affordable housing.
The Biden administration wants to expand housing opportunities for seniors and people with disabilities, provide $300 million for local housing policy grants, and give $65 billion in incentives to state housing authorities, which develop long-term housing strategies for communities.
It’s impossible to know whether these plans will actually come to fruition or what changes they may go through before they’re implemented. We’ll keep an eye on developments and let you know what we see happening on a federal level that will effect our local real estate market.
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