Article Summary –
Kamala Harris’ proposals aim to address the housing crisis by creating three million homes by 2028, providing up to $25,000 in down payment assistance to first-time homebuyers, and targeting corporate landlords’ price-fixing practices. The housing market in North Carolina and nationally faces significant challenges, including a shortage of over seven million affordable homes, rising mortgage rates above 6%, and significant increases in home prices, such as a 41% rise in North Carolina’s median home sale price from 2020 to 2024. Harris’ plan includes expanding the Low-Income Housing Tax Credit, incentivizing rapid building of affordable housing, streamlining permit processes, and endorsing acts to curb predatory investments and algorithmic rent-setting to lower tenants’ costs.
Kamala Harris proposes creating three million homes by 2028, offering down payment assistance to first-time buyers, and tackling price fixing among corporate landlords.
Since launching her campaign, Democratic presidential nominee Kamala Harris has promised to focus on economic opportunity and rebuilding the middle class if elected president in November.
One way she’s aiming to do this is by addressing the current housing crisis in North Carolina and the US.
Nationally, there is a shortage of more than seven million affordable homes for 10.8 million-plus extremely low-income families. Seventy percent of these families are severely cost-burdened, meaning they spend more than half of their income on rent. No state or county has affordable two-bedroom apartments for full-time minimum wage workers.
Additionally, rising home prices and low housing inventory are pricing out working families.
In Sept. 2020, the median home sale price in North Carolina was $272,000. By July 2024, it rose to $382,900, a nearly 41% increase, according to Redfin. In Charlotte, rent prices went up 20% between 2020 and 2023, consistent with the national trend of rising housing costs since the pandemic.
Here’s what Harris has proposed to address these issues:
Expanded tax credits and funding for first-time home buyers
Harris has promised to expand the Low-Income Housing Tax Credit, incentivizing investment in housing. She proposes a $40 billion tax credit to stimulate the rapid building of affordable housing and support “innovative” construction financing.
This funding would also make federal lands eligible for new housing developments.
To cut down red tape, Harris’ plan calls for streamlining the permit approval process.
Collectively, these proposals aim to create three million homes by 2028.
If elected, Harris has vowed to offer first-time homebuyers up to $25,000 in down payment support.
“We know a strong middle class has always been critical to America’s success,” Harris said at the Democratic National Convention (DNC) last month.
“We will end America’s housing shortage,” Harris added, receiving thunderous applause from delegates.
These plans would need congressional approval, meaning if Republicans retain their House majority or win back control of the Senate, they could block Harris’ efforts to address the housing crisis.
Bringing down rent costs
Harris is proposing acts to lower rent costs. She supports the Stop Predatory Investing Act, which would remove tax benefits for investors buying many single-family homes.
This proposal comes as Wall Street acquires neighborhoods and corporations purchase large swaths of homes. Institutional investors may control 40% of US single-family rental homes by 2030.
The Preventing the Algorithmic Facilitation of Rental Housing Cartels Act aims to crack down on rent-setting software that enables “price-fixing among corporate landlords.”
Harris’ proposal comes as price-fixing becomes common. The Justice Department and eight states recently filed a civil antitrust lawsuit against RealPage Inc. for its “unlawful scheme” to decrease competition among landlords and monopolize the software market.
The complaint accuses the company of monopolizing the market for price-setting software and helping landlords raise prices.
According to a report from Harvard, 22.4 million American households now spend at least 30% of their income on rent.
Harris supports President Biden’s proposal to withdraw tax credits from landlords who raise rent by more than 5% annually, applying to landlords with at least 50 units. This plan affects about half of all US rentals, according to the White House. Housing advocates praised the proposal.
Shamus Roller, executive director of the National Housing Law Project, called it a “historic” move to “increase housing stability for tenants.”
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