In a recent captivating discussion on the “New Home Insights Podcast,” Dean Wehrli, a principal at John Burns Research & Consulting, delves into the intricacies of the rental market with David Howard, CEO of the National Rental Home Council (NRHC). The conversation not only explores the impact of national, state, and local housing policies on rentals, but also delves into the housing policies proposed before the upcoming presidential election.
- The Evolution of the Single-Family Rental Market:
As the conversation unfolds, Howard sheds light on the evolution of the single-family rental and build-to-rent markets, emphasizing how these sectors have grown significantly in recent times. The emergence of single-family rental housing as a distinct asset class within the housing landscape has transformed the industry in the past decade, creating new opportunities and challenges. - National Legislation’s Impact on Rental Entities:
Transitioning to a discussion on national legislation affecting larger entities in the single-family rental sphere, Howard highlights the escalating importance of housing policy debates in Washington, D.C. Post-COVID, federal legislation addressing housing supply, affordability, and accessibility has taken center stage, paving the way for critical policy discussions that directly impact rental housing providers. -
Analyzing Presidential Candidates’ Housing Policies:
The conversation navigates towards an examination of the housing policies proposed by the two major presidential candidates. Howard outlines Vice President Kamala Harris’s emphasis on incentivizing new construction and expanding housing, contrasting it with former President Donald Trump’s focus on opening federal lands for housing development. The effectiveness of these proposed policies in encouraging new housing development remains pivotal for the future of the rental market. -
State-Level Threats to Housing Legislation:
Reflecting on state-level challenges, Howard underscores the complexities involved in enacting housing legislation at the local level. While legislation in states like California, Colorado, and Minnesota poses constraints on rental property construction, the real impact often lies at the regional level where zoning and approvals shape the housing landscape. -
The Conundrum of Rent Control and Capital Access:
The discussion steers towards the contentious topic of rent control, with Howard emphasizing the detrimental impact of such regulations on housing development. Moreover, the conversation delves into the challenges surrounding capital access in the multifamily sector, highlighting the increasing cost of capital and its implications for developers seeking affordable financing options.
As the dialogue unfolds, it becomes evident that navigating the intricate web of housing policies and regulatory frameworks is essential for fostering a vibrant and sustainable rental market. The future trajectory of the rental sector hinges on effective policy measures that promote housing development, affordability, and accessibility. Ultimately, striking a balance between regulatory oversight and fostering an environment conducive to housing innovation remains paramount for ensuring the evolution and growth of the rental market.
