Inauguration Update: Implications for Multifamily
Joe Biden Assumes the Presidency
Joe Biden has become president of the United States. He now presides over a country reshaped by pandemic, and he must address concurrent medical and economic crises. We’ve outlined Biden’s plans for the housing industry as they stood in March, and they remain mostly unchanged. Full rollout of these plans will likely have to wait for measures in response to the pandemic.
In the short term, Biden plans for a stimulus of $1.9 trillion. Recent victories in the Georgia runoff races by Jon Ossoff and Raphael Warnock mean the administration has a better chance than expected to pass such a bill. The bill, and other planned actions, have implications for the multifamily industry, outlined below.
- The stimulus includes $30 billion to help households struggling to pay rent, and to afford water and electricity.
- An additional $5 billion will go to providing housing for the homeless.
- As it stands, the bill will increase the minimum wage to $15 an hour. The plan does not outline a time period over which the increase will take place. This increase will likely cause construction prices to rise, leading to higher home prices.
- Biden will extend the national eviction ban, currently set to expire at the end of January. The ban will continue until September 31st, 2021, and will likely go into effect on January 20th, 2021.
The administration is sure to unveil new plans as the transition to a Biden presidency begins. Continue to check the redIQ blog for updates on the implications for the multifamily industry.
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