Which is a potential risk for investors when governmental influences change?

When governmental influences change, one significant risk for investors is the decreased demand for certain types of properties. Such changes can stem from new regulations, zoning laws, or policies that affect the desirability or utility of certain properties. For instance, if a government shifts focus towards environmental regulations, demand for properties in areas with environmental restrictions may decline.

Additionally, economic policies can impact consumer confidence and spending, leading to changes in housing demand. If a local government enacts policies that deter investment or development in specific sectors, properties tied to those sectors may experience a sharp drop in demand, negatively impacting their market values and rental potential. This risk emphasizes the importance of staying informed about governmental changes and their potential implications in the real estate market.