As housing prices reach record levels, both presidential candidates have laid out their plans for tackling the affordability crisis. Here’s a look at each approach—and why Kamala Harris’s may be the strongest option for making the American Dream attainable again for first-time homebuyers. #HousingCrisis #HousingAffordability #FirstTimeHomebuyer #Election2024 #KamalaHarris #Trump
A Brief History: How We Got Here
- George W. Bush (2001-2009): Bush aimed to expand homeownership by promoting subprime lending, which eventually fueled a housing bubble that burst in 2008. This crisis led to mass foreclosures and a housing glut, destabilizing the market and setting the stage for affordability challenges for years to come.
- Barack Obama (2009-2017): Inherited a devastated housing market. His administration focused on stabilizing it with programs like HARP and HAMP, which helped keep people in their homes. However, tighter mortgage regulations, while stabilizing, also made it harder for new buyers to access credit, unintentionally reducing supply in the long run.
- Donald Trump (2017-2021): Trump focused on deregulation, including environmental and zoning restrictions, aiming to reduce building costs. However, his policies largely favored developers over first-time buyers. The Tax Cuts and Jobs Act of 2017 limited SALT deductions, impacting home affordability in high-tax states, while other actions discouraged affordable housing development in suburban areas.
- Joe Biden (2021-Present): Biden’s approach emphasizes affordable housing construction, proposing incentives for local zoning reform and federal funding to boost supply. His plans include down-payment assistance for new buyers and support for renters, though local cooperation is critical to their success.
What Each Candidate Proposes in 2024
- Donald Trump: Trump proposes deregulation to cut building costs, open federal lands for housing, and provide tax incentives for first-time buyers. However, his stance against low-income housing in suburban neighborhoods may restrict affordable housing expansion in these areas, reducing access. Furthermore, while deregulation aims to lower upfront costs, experts caution that it could lead to unintended consequences for communities. Without adequate zoning and environmental protections, rapid development might increase infrastructure strain, decrease property values, and raise long-term maintenance costs. This approach risks creating disparities in housing quality, safety, and affordability, ultimately impacting the total cost of ownership for residents over time.
- Kamala Harris: Harris’s plan is comprehensive, addressing both the supply and demand sides of housing. With $25,000 in down-payment assistance for first-time buyers, it supports young families and lower-income households. Her policies focus on expanding affordable housing stock by incentivizing developers to build starter homes and rehabilitate properties in lower-income areas. Her zoning reform also seeks to streamline development near transit hubs and repurpose vacant office spaces into housing, fostering sustainable communities and helping to keep long-term ownership costs manageable. By prioritizing affordability and thoughtful growth, Harris’s plan aims to make homeownership a lasting reality for more Americans.
Why Harris’s Approach May Be Better for First-Time Buyers While Trump’s plan may benefit developers by lowering construction costs, Harris’s plan directly addresses barriers for new buyers by helping with down payments and promoting starter home construction. Her holistic approach aims to balance both supply and affordability, ensuring that housing isn’t just available but also accessible to those entering the market for the first time.
Economists generally agree that without assistance, deregulation alone may not make housing affordable, especially for first-time buyers competing with investment firms in tight markets. Harris’s down-payment assistance, coupled with efforts to incentivize affordable development, targets the root of the problem: the gap between entry-level buyers and current market prices.
In short, Kamala Harris’s plan represents a comprehensive strategy to restore affordability and make the American Dream a reality once again for new generations.
Naval architect, ocean engineer, mechanical engineer "Have GHS, will travel"
2 周One minor help would be to help to form owner-developer cooperatives. They would comprise prospective owners who would then develop more affordable housing. Conventional developers must produce the most expensive housing possible on a given site to make back their investments, but future owners would be motivated the other way. Costs of selling the development would be largely eliminated as would risk of sales and costs of bridging finance during construction because all of the units would be pre-sold. Government costs to such a scheme would be minimal; improved access to financing and probably in-kind help and advice. Candidate sites, coincidently are becoming more available from brown field industrial sites and dead shopping malls.
MFIN, CPA candidate, Business Owner.
3 周Isn’t it like US sovereign rating improved from The Aab to Aaa1
PrimeTimeDesign.org
3 周Anyone that thinks Harris plans are good would never be someone I could hire
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3 周I'm currently homeless and living in a shed with my partner who is disabled with no income. I do have a part time job but have no way of progressing. I need help.so who do I contact about my situation. That will help us, not put us in a homeless shelter. We are both over 55yrs.
Author, Futurist, Public Speaker
3 周Use this. Already effective!