Don Peebles is the founder, chairman, and CEO of The Peebles Corporation. He’s already been sounding the alarm on the current government shutdown and its harmful effects on the housing market. Speaking during his recent appearance on “The Exchange,” Peebles provided insights into how this political impasse is creating instability in the sector.
As a testimony of the depth of the impact that the current government shutdown is having on the housing sector, during the panel discussion, Peebles warned. He noted that uncertainty about future federal funding, as well as the regulatory review process at the federal level, could scare off both potential homebuyers and investors. He asserted this reluctance would reduce the need for housing. Consequently, property values will likely end up decreasing.
Peebles joined us to discuss which segments of the housing sector will be most affected and why. He expressed that affordable housing initiatives are especially susceptible to loss when government lacks clarity and consistency in direction. Funding for key community development programs has been threatened. This could leave important projects providing much-needed affordable housing subject to years-long delays or death in tuxedo.
The chairman of The Peebles Corporation, a national real estate development firm, was just as worried for the luxury housing sector. Although it traditionally shows resilience during economic downturns, Peebles warned that the current political climate might cause high-net-worth individuals to reconsider their investments. This market shift may result in a cooling off of new luxury developments, increasing market volatility even more.
Peebles’s observations certainly captured some of the industry’s larger fears at play. I’m sure no one is tracking the development more closely than real estate professionals. Continuing government shutdowns can have ripple effects that freeze progress and ingenuity in the housing market. Each of these changes has various implications, not only for real estate investments but for the economy at large.
Peebles brought attention to the new impact of the shutdown. He called on policymakers to make housing a priority in their ongoing negotiations. He stated that a strong housing market is a key requirement for Americans to build wealth of their own. Beyond that, it’s crucial to keeping the nation economically healthy.