The Latest Edition of reiaSENSE
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The Commerce Clause Loophole: Not to belabor an old government class point on the Constitution, but the original intent of the Commerce Clause was intended to assist the federal government in smoothing over state to state conflicts so that interstate business transactions could be fostered. James Madison in the Federalist Papers (#42) sought a broad reading of the Commerce Clause, that is to say, he favored a larger and impactful role for the federal government. In 1824 Chief Justice John Marshall (Gibbons v Ogden) codified that expansionist trend. Almost two hundred and fifty years later there is a growing Supreme Court consensus that enough is enough and that the offending Clause should be reconsidered in light of its original intent. The results of this change in court philosophy to a narrower reading of the Constitution will be reflected in cases much like the Chevron Deference case, as well as with key cases limiting future federal government growth. The question being asked quietly, is when will the Sherman Antitrust Act challenge tech giant dominance? |
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Reach Out and Touch Someone: Outreach to Candidates running for office: Most impressionable season for the next 2 to 6 years. The next three months are the absolute best time to speak with candidates about their positions on issues. A candidate is never more amenable to a different perspective than when they are running for office – and addressing the concerns of a constituent! Someone will win each race. Please make sure you are doing your part as a member of the real estate industry by participating in local races. A small investment of time and money(!) can help build a relationship that may be critical in the next several years. |
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Cashiering the Regulatory State: The death of the “Chevron Deference” is the interesting result of two separate lawsuits that were combined to address the broader ambiguity of bureaucratic rule-making in the executive branch. There are a number of longer statements on the issue and National REIA will provide greater insight in future articles, however, for now bear in mind that the wings of the bureaucracy were just clipped shifting greater responsibility to a legislative branch that has been shirking its duty for quite some time – some would say all the way back to 1946 when the initial Administrative Procedures Act was established. The APA allows for public comment on rule propagation by departments, the degree to which the Department listens is subjective. The death of the Chevron Deference will change little in the real estate world in the short-term as each rule, such as the guidance on emotional support animals, will need to be challenged case by case. So, to all the attorneys in our industry – this is your notice to start looking for good fact patterns to challenge bad over-reaching regulation. |
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Location, Location. Location!: As the U.S. economy is working through a housing distribution issue and an inconsistent growth pattern, there will be varying opportunities based upon the region. Consistent with several data sites, National REIA’s own Homeworthi reports are reflecting overproduction in Texas and Florida in general resulting in price drops and vacancy rate increases. Now is the time to have caution – National REIA is encouraging investors not to project their local economy on another part of the country: the location matters more than ever! In contrast to most major southern metropolitan areas, significant parts of the Midwest and NE are still in short supply of housing with a limited rental supply, with the latter stagnating as newer product is brought online. Additionally, overall rents are stagnating after recent increases, meanwhile insurance companies and their prices are still trying to catch up. Market due diligence is critical at this phase! |
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Virtue Signaling: Virtue signaling by politicians who cannot seem to help themselves when it comes to attacking and demonizing their opponents doesn’t pass the smell test. Remember, if that elected official is willing to throw the worst invectives at their opponent or opposition, what will they say about you and your industry when you are not around? Who will they appease when sacrificing you? As Americans we can raise the bar on disagreement. We do not have to be disagreeable: something we see exemplified in the common man in the form of Road Rage. Nor do we need to dehumanize those we disagree with at this moment. If politics truly is about the art of the possible, let’s not limit ourselves, nor allow our representatives to degrade our civil discourse. |
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“We have two ears and one mouth so that we can listen twice as much as we speak.” |
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Stay up to date: Stay up to date with current industry news and updates by visiting RealEstateInvestingToday.com. Likewise, visit NationalREIA.org/advocacy to stay up today with current legislation and governmental actions. |