In the ongoing presidential campaign, Kamala Harris has positioned housing affordability as a central issue, proposing an ambitious plan to address the United States' housing shortage. Meanwhile, Donald Trump's campaign has taken a contrasting stance, defending local housing restrictions that often impede affordable housing development.
Harris has outlined a comprehensive strategy to boost housing construction and reduce costs for both renters and homebuyers. Her plan includes:
- Building 3 million additional housing units in four years
- Introducing a new tax credit for developers focusing on first-time homebuyers
- Offering a $25,000 tax credit for first-time homebuyers
- Establishing a $40 billion fund to encourage local governments to build affordable housing
- Streamlining regulations and expanding rental aid
The Democratic nominee's proposals aim to address a housing shortage that has been exacerbated by various factors. According to Moody's Analytics, the US is currently short 2.9 million housing units, a situation that stems from the 2007-2009 financial crisis and subsequent slow recovery in construction. Recent pandemic-related shortages of construction materials and rising interest rates have further complicated the issue.
The housing crisis has had a significant impact on American households. Real estate firm Zillow reports that US home prices have increased by 50% in the past five years, while rents have risen by 35%. These stark figures underscore the urgency of addressing housing affordability.
Trump's position on housing appears less defined. While the Republican Party platform advocates for boosting home ownership through tax breaks and reduced regulations, Trump has spoken against proposals to loosen local zoning restrictions that prevent the construction of affordable housing in single-family neighborhoods.
"I keep hearing about the suburban woman doesn't like Trump. I keep the suburbs safe. I stopped low-income towers from rising right alongside of their house, and I'm keeping the illegal aliens away from the suburbs."
This stance has drawn criticism from housing experts like Jenny Schuetz of the Brookings Institution, who argues that framing housing affordability as a social issue rather than an economic one is counterproductive.
The contrasting approaches of Harris and Trump reflect the complex history of housing policy in the United States. Since the establishment of the Department of Housing and Urban Development in 1965, numerous legislative efforts have aimed to address housing affordability and discrimination. These include the Fair Housing Act of 1968, the Housing and Community Development Act of 1974, and more recent initiatives like the Housing Opportunity Through Modernization Act of 2016.
As the campaign progresses, the candidates' housing policies are likely to face scrutiny from voters who consistently rank housing costs as a top economic concern. A Reuters/Ipsos opinion poll in May found that housing costs were the second-most important economic worry for voters, after fears of rising prices and stagnating income.
The implementation of any new housing policies will face challenges, as evidenced by the difficulties President Biden has encountered in passing similar proposals through Congress. However, the prominence of housing affordability in the current campaign underscores its importance to American voters and the urgent need for effective solutions to the ongoing housing crisis.