Housing Crisis Takes Center Stage in U.S. Politics

The U.S. housing crisis, once a matter primarily handled by local governments, has surged to the forefront of national politics as soaring prices and supply shortages push homeownership further out of reach for millions of Americans. Mayors across the country, from Phoenix to New York City, have sounded the alarm, calling it a nationwide emergency. Both major political parties have taken note, with housing now a key issue in the 2024 presidential campaign.

Homeownership affordability, as tracked by the Federal Reserve Bank of Atlanta, has fallen to its lowest point since 2006, exacerbated by high interest rates and a shortage of supply. With median monthly mortgage payments in battleground states nearly doubling since the last election, this issue is weighing heavily on voters’ minds. In states such as Arizona, Georgia, and Nevada, the impact has been especially stark, making housing costs one of the top concerns for voters heading into 2024.

Democratic candidate Kamala Harris has made housing policy a central pillar of her platform. Her proposals include tax credits for builders constructing affordable starter homes, as well as $25,000 in down payment assistance for qualifying buyers. Harris’ campaign has also focused on cracking down on corporate landlords and Wall Street’s influence on housing prices. Her message seems to resonate with voters in key swing states, where recent polling indicates a slight preference for Harris over Donald Trump on housing issues.

Trump, however, has his own housing plan, which aims to address affordability by reducing regulations and opening up federal lands for development. His campaign emphasizes cutting taxes and eliminating bureaucratic red tape to boost supply and drive down costs. However, the challenge remains that much of the available federal land is far from metro areas where the housing demand is highest, making it unclear how effective this strategy would be in the short term.

The roots of today’s housing crisis trace back to the aftermath of the 2008 financial collapse, which decimated the construction industry. A decade later, multifamily builders have focused on market-rate units, particularly for higher-income renters, leaving a critical shortage of affordable housing. The National Low Income Housing Coalition estimates a shortage of 7.3 million affordable rental homes for low-income Americans. Despite attempts to increase supply, high interest rates and lingering regulatory obstacles have kept construction from meeting the rising demand.

Local regulations, zoning laws, and building costs remain formidable obstacles to solving the housing shortage, and any plan, whether from Harris or Trump, would need to navigate this complex landscape. Both candidates will likely face challenges in implementing their housing policies. Builders are already stretched by labor and material shortages, and the regulatory patchwork across local governments adds another layer of complexity.

With housing costs on the rise, particularly in key swing states, the conversation about how to address the crisis is poised to be a major factor in the upcoming election. Both parties are eager to appeal to frustrated renters and prospective homeowners, positioning housing affordability as one of the most important issues heading into 2024.