What the 2024 Election Results Mean for Real Estate: Key Takeaways for Homebuyers and Professionals

As the 2024 election results settle in, the real estate industry is gearing up for some important changes that could affect homebuyers, sellers, and real estate professionals. While election campaigns are full of promises, the real impact will come from the laws and policies that follow. Here’s a plain-language look at some significant issues to watch in the coming months: tax laws, healthcare options, and local housing policies, especially in Northern Virginia.

Understanding Changes to the Tax Cut and Jobs Act (TCJA)

The Tax Cut and Jobs Act (TCJA), which became law in 2017, changed how taxes are handled, including some rules that directly affect real estate. For example, it raised the standard deduction and put a cap on how much homeowners can deduct for mortgage interest. These changes have made it harder for some buyers to afford homes.

If lawmakers decide to revisit the TCJA, they could change these rules again. A shift in mortgage interest deductions or a higher standard deduction could help improve affordability for buyers, particularly in expensive areas. For those in the real estate industry, understanding these potential changes is crucial for helping clients make informed decisions.

What’s Going on with SALT Deductions?

One piece of the TCJA that has caused a lot of concern is the cap on State and Local Tax (SALT) deductions, which limits how much you can deduct for state and local taxes to $10,000. This is especially tough for homeowners in high-tax areas like Northern Virginia, where property and income taxes can be quite high.

Real estate professionals and homeowners in places like Alexandria and Arlington are pushing for changes to this rule. If the SALT cap is raised or eliminated, it could make homeownership more attractive and affordable. Keep an eye on legislative discussions, as these changes can directly affect your tax bills and the real estate market.

The Importance of Association Healthcare

Many people in real estate work as independent contractors or own small businesses, which means they often struggle to find affordable health insurance. Association healthcare plans could allow real estate associations to provide insurance options to their members.

With a Republican majority in the House of Representatives, there may be renewed efforts to support association healthcare plans. If successful, this could lead to better healthcare options for real estate professionals, helping them save money on medical expenses and making it easier for more people to join the industry.

Local Housing Goals in Alexandria and Arlington

On a local level, Alexandria and Arlington are focusing heavily on housing issues in their recent elections. Both cities are looking for solutions to make housing more affordable for their residents. 

In Alexandria, there are discussions about affordable housing initiatives aimed at creating various housing options for different income levels. Arlington is also looking at policies that would allow for more duplexes, townhomes, and smaller apartments, which could help meet the demand for more affordable housing.

These local decisions can have a big impact on property values and available housing. Real estate professionals should stay engaged with what’s happening in local government, as changes in housing policies can create new opportunities or challenges in the market.

Stay Updated 

As we transition into this new political landscape, it’s important for everyone in the real estate industry—homebuyers, sellers, and professionals—to stay informed about the potential changes coming our way. Whether through national legislation or local policy adjustments, these developments can influence housing demand, property prices, and access to resources for real estate professionals.

Here at Ruiz Realty Group, we keep you updated on these important issues that affect housing affordability and industry stability. Together, let’s navigate these changes and advocate for the best outcomes in our real estate market. 

Stay tuned for more updates as we watch these key issues!

Source: NVAR | www.nvar.com