Devonshire Housing Demand Poised for Growth as 2024 Election Heats Up

The community of Devonshire in Kaufman County, Texas, is a vibrant and growing area with about 2,700 homes, including roughly 2,300 owner-occupied properties. As the community continues to develop, potentially reaching 4,000 homes, understanding the economic policies of the 2024 presidential candidates is crucial for both potential homebuyers and current homeowners with significant home equity interests. Here, we analyze some of the relevant policies of the Trump-Vance and Harris-Walz campaigns, focusing on their potential impacts on Devonshire.

Trump-Vance Campaign Promises

The Trump-Vance campaign emphasizes reducing regulations and promoting free-market principles. Their policies include significant tax cuts, particularly for higher-income earners and businesses, which they argue will stimulate economic growth and investment. They also propose implementing a 20% import tariff across the board and potentially a 60% import tariff on China. They also propose more aggressive immigration controls, including carrying out the largest domestic deportation operation in American history and building additional border barriers.

The combination of tax cuts and reduced regulations could lead to increased disposable income and investment in real estate, driving up housing prices. Additionally, the proposed tariffs could significantly increase the cost of construction materials and goods, leading to higher construction costs and, consequently, higher home prices. Stricter immigration policies could lead to labor shortages in the construction industry, driving up labor costs and further increasing home prices.

In Kaufman County, where there are already limited restrictions on new housing developments, these policies could result in rapid increases in housing prices. This might benefit current homeowners by increasing their property values but could make it more challenging for new buyers to enter the market. The high tariffs, in particular, could lead to cost increases, affecting the affordability of new homes and potentially slowing the pace of building.

Harris-Walz Campaign Promises

The Harris-Walz campaign focuses on increasing housing affordability and accessibility. Their proposals include downpayment assistance for first-time homebuyers, expanding affordable housing programs, and implementing policies to increase the housing supply. They also propose expanding tax credits for low- and middle-income households, such as the Child Tax Credit (CTC) and the Earned Income Tax Credit (EITC). They also support repealing the SALT cap, which would allow residents to fully deduct their state and local taxes. Lastly, they propose measures to ban corporate price gouging on essential goods and services, aiming to protect consumers from unfair price hikes.

Downpayment assistance and affordable housing initiatives could make it easier for first-time buyers to enter the market, potentially driving up demand and home prices. The focus on increasing the housing supply could help mitigate some of these price increases by providing more options for buyers. While price controls are well-intentioned policies aimed at stabilizing the cost of living, most economists agree such measures distort market price signals, create shortages, lead to inefficient allocation of resources, create black markets and reduce incentives for producers. The ultimate effect of price controls would be consumers have less money available for home purchases.

In Devonshire, policies from the Harris-Walz campaign could lead to higher home prices mainly because of increased demand from first-time homebuyers using downpayment assistance. This makes it easier for new buyers to afford homes, which would drive up competition. The CTC expansion, especially the $6,000 credit for newborns, would also raise demand, since Devonshire is a community of family-sized homes, and families would have more money to put toward buying a house.

The plan to build more affordable housing with federal investments would benefit first-time buyers the most, helping them afford homes in suburban areas like Devonshire. However, current homeowners in the area might see less benefit because more new homes could bring additional competition. For the developers of the Devonshire community and for new buyers, completing the community faster would be good. It would give buyers more choices, but adding more homes could slow down price increases caused by high demand. Overall, home prices are still expected to rise, but the exact effect of these policies is hard to predict because Devonshire is running out of land for new housing lot developments.

Conclusion: Win-Win for Real Asset Owners

Regardless of the election outcome, Devonshire homeowners can expect policies that are likely to support continued economic growth and, by extension, rising home values. As Kaufman County remains a hot spot for development, both sets of policies could contribute to a prosperous future for the community.

For personalized real estate advice from a Devonshire expert, call Brendan Hirschmann, REALTOR® at 972-559-4648. Brendan can provide you with the insights and guidance you need to navigate the current market trends and make informed decisions.