In a recent episode of the “New Home Insights Podcast,” Dean Wehrli, principal at John Burns Research & Consulting, has a conversation with David Howard, CEO of the National Rental Home Council (NRHC). They delve into the impact of national, state, and local housing policies on the rental market, as well as the housing policies proposed in anticipation of the presidential election.
Wehrli: You joined NRHC during a period of growth in the single-family rental and build-to-rent markets. How have these markets evolved since then?
Howard: The single-family rental housing sector has historically existed in a gray area, but in the past decade or so, it has emerged as a distinct asset class within the housing market.
Wehrli: There are national legislative measures that could impact larger entities in the single-family rental sector. Can you elaborate on this?
Howard: Housing has become a focal point of policy discussions in Washington, D.C., post-COVID. Federal legislation is addressing various concerns related to housing supply, affordability, and accessibility.
Wehrli: How do the proposed policies of the two major presidential candidates affect the rental market?
Howard: Both candidates have outlined plans to address housing issues, with a focus on incentivizing new construction and expanding housing development opportunities.
Wehrli: Are there any state-level policies that pose a significant risk to the rental market?
Howard: Some states, such as California, Colorado, and Minnesota, have implemented legislation that imposes restrictions on rental property construction, impacting the housing market at the regional level.
Wehrli: Let’s discuss the legislation that could impact build-to-rent initiatives.
Howard: While certain counties in Georgia have specific legislation for single-family rental properties, there is a lack of understanding among policymakers about the benefits of build-to-rent projects.
Wehrli: How do you view the issue of rent control and its potential consequences?
Howard: Research suggests that rent control can deter new housing development and investment, leading to a shortage in housing supply over time.
Wehrli: Access to affordable capital is a challenge in the multifamily housing sector. How do you see this affecting the industry?
Howard: The rising cost of capital makes it difficult for developers to finance new housing projects, thereby making single-family rental homes a more feasible option compared to multifamily properties.
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