Capital for Infrastructure is coming your way and will have an effect on the value of real property of all types and will bring with it opportunity.
With the passage of the Infrastructure Investment and Jobs Act (IIJA) and the Inflation Reduction Act (IRA), funds are actively flowing into states and localities.
Remember, the “Four Great Forces Influencing Value?”
Environmental forces pertain to natural or human-made factors (the quality of the conveniences such as schools, churches, transportation, shopping centers, parks, and playgrounds) that can affect property value. This includes aspects like proximity to natural features (e.g., mountains, lakes, or coastlines), environmental hazards (e.g., flood zones, pollution sources), and access to natural resources. Additionally, environmental sustainability and energy efficiency measures are becoming increasingly relevant factors affecting property values.
Social forces refer to the characteristics and preferences of people living or working in a particular area. Factors such as population demographics, lifestyle trends, cultural amenities, and community infrastructure can significantly impact property values. For example, properties located in areas with high-quality schools, low crime rates, and desirable neighborhoods tend to command higher values.
Economic forces encompass the overall economic conditions of a region, including factors such as employment rates, income levels, inflation, and interest rates. These factors influence both the supply and demand for real estate. A robust local economy with strong job growth and higher incomes can drive up property values, while economic downturns or high unemployment rates may have a negative impact.
Political forces encompass various government policies, regulations, and interventions by government bodies that affect real estate.
These include land use policies such as zoning laws, building codes, taxation policies, and infrastructure development initiatives.
Changes in regulations or public investments in transportation, schools, or other amenities can significantly impact property values.