How 2024’s Political Shifts Could Shape the Real Estate Market

As you sip your coffee this Election Day, Utah’s real estate future might be on your mind—especially with so much at stake in this year’s vote. Across the U.S., political races are heating up, and the decisions made at the ballot box today could send ripples through Utah’s real estate market for years to come.

Whether you're considering a new home, thinking of selling, or eyeing Utah’s fast-growing investment scene, understanding the political landscape is key to making sound real estate decisions. With policy changes potentially impacting everything from mortgage rates to affordable housing and property taxes, let’s explore how today’s elections might shape your next steps in Utah’s real estate market.

1. Federal Policies: Potential Reforms on the Horizon

The national outcomes of today’s election could redefine housing policies and financial regulations that trickle down to states like Utah. Here are some of the potential shifts:

Changes to Mortgage and Property Tax Deductions

With both major parties debating the future of mortgage interest deductions and property tax rules, the outcomes of today’s elections could determine whether we see cuts or expansions in homeowner tax benefits. For Utah, where homeownership rates are high and growing, any adjustments could influence both affordability and the appeal of new home purchases.

• Impact for Buyers and Homeowners: If mortgage interest deductions decrease, Utah homeowners may experience higher tax bills, affecting monthly affordability. This change could be significant for first-time buyers or young families looking to enter Utah’s booming market.

Capital Gains and 1031 Exchange Adjustments

Proposed changes to capital gains and 1031 exchanges—a vital tax deferment tool for real estate investors—have been part of the federal policy conversation. The election outcome could either support or limit these tax benefits, influencing Utah’s active investment market, particularly in high-demand areas like Salt Lake City and Park City.

• Impact for Investors: Tighter regulations on 1031 exchanges could affect investor flexibility, potentially dampening activity in Utah’s rental and vacation property sectors. For investors in Utah’s thriving markets, the election results could guide future investment strategies.

2. Utah’s Local Ballots: What’s at Stake for Real Estate?

Utah’s ballots this year include races and referendums that could directly impact our real estate market. Here’s a look at key issues for Utahns:

Zoning and Housing Affordability Measures

With housing affordability as one of Utah’s most pressing issues, state and local governments are exploring new zoning regulations to support multi-family developments and reduce housing costs. This year’s election includes candidates and measures aimed at tackling housing shortages and affordability.

• Impact for Buyers and Renters: If pro-housing candidates win, expect efforts to ease zoning restrictions in Utah’s more densely populated areas, like Salt Lake County and Utah County. This could pave the way for more affordable housing options, easing competition for both rentals and homes for sale.
• For Investors and Developers: Expanded multi-family zoning could create new opportunities in regions where demand outpaces supply. For those interested in developing in Utah, these local election results may inform the best areas for future projects.

Environmental Policies and Green Building Standards

As climate concerns rise, some of Utah’s candidates are pushing for greener building standards. Proposals on the table could mandate more energy-efficient homes, impact building costs, and create incentives for sustainable materials.

• Impact on Future Home Prices and Demand: If new policies emerge, energy-efficient homes could see increased demand, particularly in areas like Park City or Moab, where environmentally conscious buyers are prevalent. For current and future homeowners, green policies may mean reduced utility costs and increased resale value.

3. Key Takeaways for Utah Real Estate Participants on Election Day 2024

As the election results roll in, here’s how different groups can prepare for potential changes in Utah’s real estate market:

For Buyers: Keep a Close Watch on Mortgage Policies

• Consider Early Financing Options: With mortgage rates subject to political influence, buyers may want to lock in favorable rates sooner rather than later, especially if federal policy changes could influence interest rates.
• Stay Updated on Local Incentives: If affordable housing or green energy initiatives are passed, new programs may be available to help first-time buyers or those moving to specified areas within Utah.

For Sellers: Embrace Eco-Friendly Home Features

• Highlight Sustainable Upgrades: If environmental policies gain traction, energy-efficient upgrades like solar panels, smart home systems, or eco-friendly appliances could become significant selling points in the Utah market.
• Be Ready for Shifts in Demand: Zoning reforms could alter the demand for single-family versus multi-family homes. Sellers may benefit from timely pricing strategies, staging, and marketing that emphasize unique property features.

For Investors: Look for Growth in Transit and New Developments

• Focus on Transit-Centric Investments: With Utah’s population booming, transit expansions in areas like Draper, Ogden, and Lehi may increase property values, especially if public transit policies advance after the election.
• Monitor Short-Term Rental Policies: If regulatory changes around vacation rentals arise, areas popular with tourists, such as Park City, may see tighter rules on short-term rentals. Investors should stay agile and adjust strategies based on today’s policy outcomes.

Election Day 2024: Prepare for a Shifting Landscape

Today’s decisions at the polls could set the stage for Utah’s real estate trends for years to come. Whether you’re a hopeful first-time buyer, an investor eyeing new developments, or a homeowner considering selling, the political landscape will play a role in Utah’s property values, affordability, and investment potential.

As the votes come in, take a moment to reflect on how the outcomes might influence your next move in Utah’s dynamic real estate market. And if you’re ready to make an informed decision, the Red Sign Real Estate Team is here to help you navigate Utah’s evolving market with confidence.