Infrastructure Improvement Means Real Estate Activity
When the Trump administration released its $1.5 trillion infrastructure plan last month, it set in motion a multi-year process that could eventually lead to considerable investment in communities. Of course, Congress must pass legislation to make much of it happen. Although there are some parts that the administration can do on its own, a lot of the plan will require both authorizing and funding legislation, so how close we get to that $1.5 trillion goal is dependent on what lawmakers can agree on in the next year or two.
Regardless, with the country’s roads, bridges, waterways, dams, and other public projects aging, some projects will be getting funds in the years ahead whether or not the plan is all or partly enacted. The question for you is, how will you get involved? Will you get involved upfront, when projects are in the planning stages, or will you get involved after projects get going? Often, bridge replacement means land transactions, because it’s not unusual for a replacement bridge to be built alongside the existing bridge. That means government might have to acquire or condemn nearby property. Or if a road is widened—will that involve acquisition or condemnation of land?
Property values tend to go up after infrastructure improvements are made. In northern Virginia, expansion of the metropolitan subway system had a tremendous impact on property values along the new tracks. Huge condo, apartment, retail, office, and mixed-use projects followed. It triggered a real estate boom.
The administration’s infrastructure plan is featured in the latest Voice for Real Estate news video from NAR. Access that segment now.
The video also looks at why NAR supports the banking reform bill that passed the Senate a couple of weeks ago, why passage of long-term reform of federal flood insurance is just as much about improving communities as it is about continuation of insurance policies, and why Congress needs to make mortgage debt forgiveness relief a permanent part of the tax code. Cyber crime and association health plans are covered, too.
