This is one in a series of States Newsroom reports on the major policy issues in the presidential race.
WASHINGTON — Housing affordability and supply have taken center stage in the presidential race, with both candidates presenting plans to tackle these crucial issues. The COVID-19 pandemic intensified housing market challenges, with supply chain disruptions, low interest rates, and rising demand driving up prices, as reported by the Journal of Housing Economics.
Housing issues, traditionally managed locally, now demand federal intervention due to tight supply and soaring rents. Both Democratic candidate Kamala Harris and Republican candidate Donald Trump agree on the urgency, but propose different solutions. The Harris and Trump campaigns did not reply to requests for more information on their housing strategies.
Promise: millions of new homes
Harris’ plan proposes building 3 million homes within four years to address the estimated shortage of 3.8 million homes. A record 653,100 people are homeless, and rent burdens are rising. “This is obviously a multi-prong approach,” Harris stated, aiming to lower housing costs.
Promise: single-family zoning
Trump favors single-family zoning, opposing multi-family developments. “There will be no low-income housing developments built in areas that are right next to your house,” he declared at a Montana rally. This policy could impact local land-use regulations.
Promise: Getting Congress to agree
With Democrats predicted to regain the House and Republicans the Senate, bipartisan support is essential for housing proposals. “All the money comes from Congress,” noted Ted Tozer of the Urban Institute. Harris’ plans depend heavily on Congressional cooperation, including S.2224 and S. 3692, both requiring 60 Senate votes.
Promise: $25,000 down payment assistance
Harris proposes $25,000 assistance for first-time homebuyers, contingent on Congressional funding. Some fear it could inflate home prices. She also suggests a $40 billion innovation fund for local housing solutions, pending approval.
Promise: Opening up federal lands
Both candidates support using federal lands for housing, promising a portion for affordable units. The federal government owns about 650 million acres, though details remain sparse.
Promise: Expand tax credits
Harris plans to expand the Low-Income Housing Tax Credit (LIHTC), which offers tax breaks for affordable housing. The program currently provides temporary rent restrictions. “It’s an interesting moment,” says Francis Torres of the Bipartisan Policy Center, noting the contrast in federal involvement between candidates.
Trump’s record on housing
Trump’s housing record includes budget proposals to raise rent for low-income households and cut programs like the Community Development Block Grant. His Opportunity Zones, part of the 2017 Tax Cuts and Jobs Act, saw mixed results.
Promise: Cut regulations and add tariffs
Trump aims to reduce regulations and expedite zoning to lower housing costs. He also proposes tariffs on imports, which could increase home construction costs. “Your permits, your permitting process. Your zoning, if — and I went through years of zoning,” Trump said.
Promise: Deport immigrants
Trump suggests mass deportations to free up housing supply, claiming immigration increases costs. “By shutting down the border, you’re possibly shutting down your capacity to build these houses,” Tozer remarked, emphasizing the interconnectedness of housing and immigration policies, with 30% of construction workers being immigrants.
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