Housing crisis 2024/ Harris housing plan/ Trump housing policy/ affordable housing/ U.S. homeownership/ mortgage rates/ rental prices/ Newslooks/ WASHINGTON/ J. Mansour/ Morning Edition/ The housing affordability crisis is a key issue in the 2024 presidential election, with Vice President Kamala Harris and former President Donald Trump proposing vastly different solutions. Harris focuses on expanding affordable housing through down payment assistance and incentives for builders, while Trump emphasizes deregulation and tying housing to immigration reform.
Housing Crisis Shapes Election as Harris and Trump Offer Divergent Solutions – Quick Look
- The housing shortage, with an estimated shortfall of up to 4 million homes, has driven prices to record highs.
- Vice President Kamala Harris proposes down payment assistance, tax incentives for builders, and a $40 billion fund for local governments to build affordable homes.
- Former President Donald Trump pushes deregulation, tax incentives for homebuyers, and reducing housing demand by curbing immigration.
- Both candidates support easing zoning laws and using federal lands to build homes.
- The candidates’ policies come amid a broader housing market slowdown caused by high mortgage rates and rising rents.
Harris and Trump Offer Competing Plans to Address U.S. Housing Crisis
Deep Look
With millions of Americans unable to afford homes or rent suitable apartments, the 2024 presidential election has made housing affordability a central issue. Both Vice President Kamala Harris and former President Donald Trump are proposing competing visions to address the housing crisis, which is driven by a persistent shortage of homes, high mortgage rates, and rising rent prices.
The U.S. housing market has been in a slump for over two years, with home sales falling amid a supply-demand imbalance. Economists estimate a shortage of 1 to 4 million homes, which has driven the median price of a previously owned home to a record high of $426,900 in June. At the same time, mortgage rates have soared, with the average 30-year rate sitting at 6.44%, keeping many potential homebuyers on the sidelines.
Harris’ Plan: Direct Assistance and Federal Support
Vice President Kamala Harris has laid out a comprehensive plan to increase housing affordability for both buyers and renters. The centerpiece of her proposal is a program that would provide up to $25,000 in down payment assistance to first-time homebuyers who have a two-year record of paying rent on time. Harris claims this initiative will help over 4 million homebuyers and cost around $100 billion.
Additionally, Harris’ platform includes tax incentives for homebuilders and $40 billion in federal funding for cities to fast-track affordable housing projects. Her campaign estimates that the plan will result in the construction of 3 million new housing units over the next four years.
However, some economists caution that providing financial assistance to buyers in markets where supply is already tight could further inflate home prices. As Redfin’s chief economist Daryl Fairweather noted, the effectiveness of this program will vary by market. “In Los Angeles, $25,000 down payment assistance is not enough, but it is enough in Detroit,” Fairweather explained.
Still, if the plan successfully increases housing supply, the financial assistance could encourage homebuilders to ramp up production, helping to balance supply and demand in the long run.
Trump’s Plan: Deregulation and Immigration Focus
In contrast, former President Donald Trump’s housing platform is more focused on deregulation and immigration reform. Trump has vowed to create tax incentives for homebuyers and cut what he calls “unnecessary” regulations that slow down housing construction. His campaign also supports making federal lands available for residential building.
Trump has repeatedly linked the nation’s housing crisis to immigration, proposing that mass deportations of undocumented immigrants would reduce housing demand and lower prices. His running mate, Senator JD Vance, has echoed these sentiments, claiming that immigrants are contributing to housing shortages in states like Ohio.
However, housing experts argue that immigration is not the primary driver of rising home prices. According to Chris Herbert, managing director of Harvard’s Joint Center for Housing Studies, “While immigrants do add to overall housing demand, they cannot be blamed for the recent surge in home prices and rents.” Additionally, the homebuilding industry relies heavily on immigrant labor, with one-third of the workforce being foreign-born. A crackdown on immigration could exacerbate the housing supply problem by reducing the available labor force.
Shared Goals: Zoning Reforms and Federal Lands
Despite their differences, both Harris and Trump agree on the need to ease zoning laws and use federal lands for housing development. Harris’ plan includes a $40 billion fund to encourage local governments to streamline their zoning regulations, with a focus on building affordable housing. Trump has similarly pledged to address zoning laws, although his platform lacks specific details on how this would be achieved.
Both candidates also support using federal lands for housing construction. Harris points to the Biden administration’s initiative in Las Vegas, where 20 acres of federal land were sold to Clark County at a steep discount to build affordable homes. Trump has proposed making certain portions of federal land available for similar projects, though the scale of such developments remains unclear.
Renters Face Challenges
The housing crisis isn’t limited to homebuyers. Renters are also feeling the pinch, as the median U.S. asking rent remains 20% higher than before the pandemic. While the construction of new apartment buildings has eased rental prices somewhat, affordability remains a significant issue, particularly for low- and middle-income Americans.
Harris’ housing platform includes measures to address rental affordability, but details on her plans for renters are limited. Trump’s campaign, meanwhile, has largely focused on homeownership rather than rental assistance.
The Road Ahead
While both Harris and Trump offer ambitious plans to tackle the housing crisis, many of their proposals would require congressional support, which could be difficult to secure. Economists are skeptical that either candidate’s policies alone will solve the long-standing affordability issues, but they agree that a combination of increased housing supply, financial assistance, and regulatory reforms will be necessary to address the crisis.
As the housing market continues to grapple with high prices, rising mortgage rates, and limited inventory, the issue is likely to remain front and center for voters heading into the 2024 election.
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