The Senate has approved a $1 trillion infrastructure package and has now shifted its attention to a separate $3.5 trillion proposal centered on housing and zoning. If you own a home and are thinking about selling, you may be wondering what all of this means for the market, for your property and for your eventual profit. Let's break it down.
What's in the Infrastructure Bill
Roughly $550 billion of the $1 trillion total is earmarked for roads, bridges, high-speed internet and other improvement projects across the country. Billions more are set aside for public transit, although that piece is less likely to matter directly to homeowners and sellers.
Protecting and Adding Affordable Housing
If you expect to sell within the next year or two, the $3.5 trillion plan is the one to watch. If it's approved, it would make up to $332 billion available for housing and related projects. It could also fund a $213 billion initiative to build and preserve more than two million affordable housing units nationwide.
Encouraging Cities and States to Act
The broader plan includes proposals to expand Section 8 housing vouchers and to reward cities and states that do away with "exclusionary" zoning. Both are part of the housing push but haven't yet been folded into the infrastructure bill. The Associated General Contractors of America is among the many groups pressing the House to pass these measures, and it stands to benefit if they do.
Policy Changes That Could Open Doors
In New York, the New York Housing Conference is advocating for a change to what's known as the "50 percent test." Under that rule, a development must get at least half of its funding from private activity bonds to qualify for Low Income Housing Tax Credits. Because the federal government limits how many of these bonds a state can issue, New York's supply is capped, which in turn limits how much affordable housing can be built. The group estimates that dropping the threshold from 50% to 25% could make room for as many as 10,000 additional affordable units statewide each year.
What It Means for Homeowners
Homeowners could feel the effects of these bills in plenty of ways, both direct and indirect. Even small towns are expected to receive new funding, whether for highway improvements or other upgrades. For agents and property owners alike, there's good reason to feel optimistic.
Don't Expect Overnight Changes
If your home is already on the market, you probably won't see any short-term effect. But if you're planning to sell in the next one to three years, you'll likely notice changes as your community grows and improves. Over the next several years, most communities should see more affordable housing, such as apartment complexes and smaller developments.
More supply could influence home values, but exactly how is impossible to say right now. We'll only know in hindsight. Demand will also hinge on interest rates, the health of the national economy and the job market in your area.
Keep an Eye on Your Community
The infrastructure bill isn't likely to have an immediate or direct effect on any individual homeowner. It's aimed mainly at developers, investors and municipalities. Homeowners will feel the impact only after those groups push for policy changes, pass new rules like zoning updates and receive money for projects. The best way to prepare, whether you're buying or selling, is to follow what's happening at the city, county and state level.
Let's Talk About Your Plans
If you have questions about how today's market conditions affect your home or your timeline, I'm always happy to help. Reach out and let's talk.