Congress recently passed a $1.2 Trillion Infrastructure Bill that could have some positive effects on the real estate industry.
According to a statement made by the President of the National Association of Realtors (NAR), “NAR is encouraged by the bipartisan support for the infrastructure bill. We supported many elements of this legislation, including significant investment in the power grid, managing climate risks, and repairing and replacing aging roads, bridges, ports, airports, and railways. These improvements will make communities more resilient and sustainable.”
The statement also sighted concerns about affordable housing and “the use of guarantee fees charged by GSEs as a funding source.” These concerns may be addressed by proposed affordable housing investments in the forthcoming Build Back Better Bill. This Bill is currently being negotiated in Congress. Despite potential direct investment into the real estate industry from the Build Back Better Bill, the Infrastructure Bill contains many indirect benefits for the national real estate market.
The Infrastructure Bill includes a $65 billion investment dedicated to expanding broadband access for less populated areas and low-income families. This could make rural areas more accessible for real estate developments. The $65 billion will also help integrate WiFi networks into apartment buildings and provide internet access in tribal land.
The Bill passed in early November also includes a $39 billion investment in public transit and $66 billion for railway improvements. The public transit upgrade could create public transportation in cities without it and enhance public transit in cities with established systems.
The investment in rail infrastructure would “eliminate Amtrak's maintenance backlog, modernize the Northeast Corridor line and bring rail service to areas outside the Northeast and mid-Atlantic regions,” according to CNN.
This Infrastructure Bill could introduce many opportunities for the real estate market. For example, builders and developers will finally have modern amenities for rural developments. The Bill will also allow at-home workers to move further away from city centers and still have the technology to effectively work from home. Real estate professionals can leverage this information to spark conversations with their contacts and establish themselves as the real estate authority in their sphere.
Find out more about the Infrastructure Bill’s impact on the real estate industry with the articles below.
NAR Statement on the Passage of Bipartisan Infrastructure Bill
What the $1.2T Infrastructure Bill Means to CRE
Here's What's in the Bipartisan infrastructure bill
How the Infrastructure Bill’s $65 billion in Broadband Spending Will Be Doled Out
About the Author
Ryan Christensen
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