Now that the new infrastructure bill has been passed by Congress (also known as the bipartisan infrastructure bill), many property owners and investors may be wondering about the impact. Read below to find out in Part 1 of this series.
Impact of the new infrastructure bill on employment
Through their president, Charlie Oppler, the National Association of Realtors issued a statement after passage of the new infrastructure bill on Nov. 5th 2021. The statement identifies a $65 billion investment in broadband that will benefit rural, underserved and low-income communities. In our article, “Find rental investment property by location”, we discussed tenant income, declining employment and rising unemployment as some of the key factors to consider before buying property for rental income.
Working from home
As a result of the COVID-19 pandemic, more opportunities are now available to work from home. This article by Forbes reports that new work from home job postings doubled during the pandemic. Another article by ZipRecruiter reports that 60% of respondents to a survey desire a new job working from home. Remote jobs can be part-time or full-time. Non-technical positions may also be available such as customer service representatives, teachers, virtual assistants, and data entry clerks.
Local areas in cities or states may have been challenged by high unemployment or companies and jobs moving out of the area. Prospective workers with increased broadband access to the internet can effectively search for, apply to, and compete for open work from home job opportunities to replace lost jobs where they live. This may be good news if you have a tenant who is out of work but has marketable skills.
Job growth
According to this article by Fox Business, the Bipartisan infrastructure plan could create over 800,000 new jobs within the next 10 years. This may lessen some of the impact of COVID-19 on the job market in those areas that have industries or companies that will benefit from the federal investment. Those industries or companies would include those that would support work on roads, bridges, power, rail, broadband internet, public transportation, airports, the environment, water, ports, transportation safety, electric vehicles, and other infrastructure.
Transportation
The infrastructure bill seeks to improve transportation options for millions of Americans according to whitehouse.gov. The whitehouse indicates more than 24,000 buses, 5,000 rail cars, 200 stations, and thousands of miles of track, signals, and power systems need to be replaced. In addition to repairing existing systems, the bill seeks to expand public transit options and improve accessibility for the elderly and disabled. The American Public Transportation Association states that people board public transportation 34 million times each weekday!
Impact of the new infrastructure bill on landlords
If you are a real estate investor or property owner who is renting out or considering renting out a property to others, the impact of the bipartisan infrastructure bill may be felt through your tenants. If your tenants have good opportunities for stable jobs that they can easily access either remotely or through traditional transportation, this means they can continue to make rental payments to you. This protects your rental income and overall financial position of your property investment. Look out for Part 2 of this series as more information becomes available.
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