As were just weeks away from the 2024 presidential election, many buyers and sellers are wondering what impacts the election will have on ranches for sale in the American West? Presidential elections can influence land and ranch values in several ways, though the impact often depends on broader economic policies, the administration’s priorities, and market sentiment. Here’s how an election might affect the land values in the ranch real estate market:

1. Economic Policy and Taxes: A candidate’s platform on taxes, interest rates, and federal spending can directly impact land prices. For example, lower taxes on capital gains or property could increase demand for land and western ranches, pushing values higher. Alternatively, a candidate promoting higher taxes on wealth or property could cause a slowdown in real estate investment, potentially reducing land values.
2. Interest Rates and Inflation: Presidents often appoint members to the Federal Reserve, influencing monetary policy. Changes in interest rates affect the cost of borrowing, which can influence the demand for ranches and land. Lower interest rates generally make financing more accessible, increasing demand for working ranches and driving up values. Conversely, rising interest rates can cool demand and depress prices.
3. Environmental and Land Use Regulations: Policies on land use, zoning, and environmental regulations can have a significant impact. A president pushing for deregulation might encourage development and increase land values for ranches with development potential, especially in rural or underdeveloped areas. On the other hand, stricter regulations aimed at conservation or limiting development could restrict supply and, depending on the context, either increase or decrease values.
4. Infrastructure Spending: Candidates who advocate for large-scale infrastructure projects (e.g., roads, bridges, broadband) can boost land values, especially in regions benefiting from these investments. Improved infrastructure often makes land more valuable as it becomes more accessible or connected to economic hubs.
5. Trade Policies: In agricultural areas, land values can be influenced by trade policies that affect crop prices and farm income. A candidate favoring free trade agreements might help boost agricultural exports, increasing the value of farmland. Conversely, protectionist policies or trade wars could lower the demand for land by hurting farm income.
6. Investor Sentiment: Elections also impact market psychology. Uncertainty around an election can cause investors to hold off on buying land, leading to short-term price drops. Once a winner is declared and policies become clearer, land values may stabilize or rise depending on investor confidence in the economic outlook.
Overall, the effects of a presidential election on land values can be both direct, through specific policies, and indirect, by shaping market conditions and investor behavior. However, we at Harrigan Land Company believe ranches have proven to be great long-term investments, regardless of who is president.