The Commerce Clause Loophole

Not to belabor an old government class point on the Constitution, but the original intent of the Commerce Clause was to assist the federal government in smoothing over state-to-state conflicts, fostering interstate business transactions. James Madison, in Federalist Paper #42, advocated for a broad interpretation of the Commerce Clause, favoring a larger and more impactful role for the federal government. In 1824, Chief Justice John Marshall (Gibbons v Ogden) codified this expansionist trend.

However, nearly two hundred and fifty years later, there is a growing consensus within the Supreme Court that the Commerce Clause needs to be reconsidered in light of its original intent. This shift towards a narrower reading of the Constitution will be reflected in cases like Chevron Deference and other key cases limiting future federal government growth. Quietly, people are asking when the Sherman Antitrust Act will challenge tech giant dominance.

"No man's life, liberty, or property are safe while the legislature is in session."- Mark Twain

Reach Out and Touch Someone

Outreach to Candidates Running for OfficeThe most impressionable season for the next 2 to 6 years is upon us. The next three months are the absolute best time to engage 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 ensure 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.

Cashiering the Regulatory State

The Death of the “Chevron Deference”The recent demise of the "Chevron Deference" stems from two separate lawsuits that were combined to address the broader ambiguity of bureaucratic rule-making in the executive branch. National REIA will provide greater insight into this issue in future articles. However, for now, note that the bureaucracy's wings were just clipped, shifting greater responsibility to a legislative branch that has been shirking its duty for quite some time—some would say since 1946, when the initial Administrative Procedures Act (APA) was established. The APA allows for public comment on rule-making, a process now facing renewed scrutiny.

Virtue Signaling

The Perils of Virtue Signaling by PoliticiansVirtue 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 an 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 or allow our representatives to degrade our civil discourse.

Location, Location, Location!

The Importance of Regional Differences in the Housing MarketAs the U.S. economy navigates through a housing distribution issue and an inconsistent growth pattern, opportunities will vary by region. Consistent with several data sites, National REIA’s own Homeworthi reports reflect overproduction in Texas and Florida, resulting in price drops and vacancy rate increases. Now is the time to exercise caution—National REIA encourages investors not to project their local economy onto another part of the country. Location matters more than ever! In contrast to most major southern metropolitan areas, significant parts of the Midwest and Northeast are still in short supply of housing, with limited rental supply and stagnation as newer product is brought online. Additionally, overall rents are stagnating after recent increases, while insurance companies and their prices are still trying to catch up. Market due diligence is critical at this phase!

Stay Informed

Stay Up to Date with Industry NewsStay up to date with current industry news and updates by visiting RealEstateInvestingToday.com. Likewise, visit NationalREIA.org/advocacy to stay informed about current legislation and governmental actions.

"We have two ears and one mouth so that we can listen twice as much as we speak."
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