How the 2024 Trump vs. Harris Election Could Impact Affordable Housing

The 2024 presidential race is heating up, and with two prominent figures like Donald Trump and Kamala Harris facing off, various policy arenas, including affordable housing, will be at the forefront. Both candidates bring distinct ideologies and approaches to housing policy, making this election pivotal for real estate investors, particularly those involved in co-living and affordable housing solutions.

In this article, we’ll explore the potential impacts of a Trump vs. Harris election on the affordable housing landscape and how real estate strategies such as co-living could evolve under either administration.

Affordable Housing Crisis: The Context

Affordable housing is a pressing issue across the United States. Rents are rising, and the cost of homeownership has skyrocketed in many regions. According to the National Low Income Housing Coalition, there is a shortage of more than 7 million affordable and available rental homes for extremely low-income households.

Given this backdrop, the 2024 election offers two very different visions for addressing this crisis.

Trump's Approach to Affordable Housing

During his time in office, Donald Trump’s housing policy was largely market-driven. His administration focused on deregulation, believing that reducing government interference would spur private-sector development. Trump's primary argument was that excessive regulations and zoning restrictions limited housing supply, driving up prices. By loosening these regulations, he claimed, developers would have more flexibility to build, thus increasing housing stock.

For real estate investors, particularly those involved in co-living, Trump's deregulatory stance could open up new opportunities. If he returns to office, investors may see a continuation of policies that reduce the barriers to development. This could be particularly beneficial for co-living projects, where zoning laws and other regulations often present significant hurdles.

However, critics argue that deregulation without adequate oversight could lead to housing that doesn’t necessarily address the needs of lower-income individuals. Instead, developers may focus on higher-end projects, leaving the most vulnerable still struggling to find affordable housing.

Harris’ Focus on Affordable Housing Equity

On the other hand, Kamala Harris has long been a champion of affordable housing initiatives, focusing on equity and accessibility. In her 2020 presidential run, she proposed a housing plan that centered on providing rent relief for working families and investing in the construction of affordable housing. Harris has also been a strong advocate for tenant protections and expanding federal housing programs like Section 8.

A Harris administration would likely push for more government intervention in the housing market, focusing on direct investment in affordable housing projects, increased tenant protections, and expanded access to housing assistance programs.

For those involved in co-living, this could mean greater opportunities to tap into federal grants and subsidies aimed at addressing affordable housing shortages. For example, co-living spaces that cater to marginalized groups—such as domestic violence survivors or low-income individuals—could benefit from increased funding under a Harris administration. Investors focusing on these niches could see new opportunities for growth, particularly as federal dollars flow toward housing programs.

Co-Living as a Solution for Affordable Housing

Co-living, a growing trend in the housing market, offers shared spaces with lower rents compared to traditional single-family rentals. This model is particularly attractive in high-cost urban areas, where individuals are looking for affordable, flexible living arrangements. As mentioned in the YouTube discussion with Hemm Tann, co-living has the potential to not only address affordability issues but also offer a communal living environment that appeals to younger generations and professionals.

During the discussion, the example of PadSplit, a co-living company that refers to its tenants as “members” to navigate legal issues, highlights how innovative real estate solutions can solve regulatory challenges while addressing affordable housing needs. Whether or not real estate investors use platforms like PadSplit, co-living presents a scalable model for affordable housing, especially when traditional solutions are out of reach.

Under Trump, a deregulatory approach could make co-living easier to implement, particularly if local zoning laws are relaxed. This would allow investors to scale co-living projects more rapidly, filling the affordable housing gap in a market-driven way. Conversely, under Harris, co-living projects catering to specific populations (e.g., low-income individuals, domestic violence survivors) could see more direct federal support, including subsidies or tax incentives for developers who prioritize affordable housing solutions.

Navigating Regulatory Changes

A major concern for the co-living sector, as highlighted in the conversation, is the potential for increased regulation. Just as Airbnb faced scrutiny and regulatory challenges from local governments, co-living could be next. Investors should prepare for a future where, regardless of who wins the 2024 election, new regulations on short-term and shared housing models may emerge.

Under Trump, regulations could be minimized, allowing for a more open market. However, if state or local governments take matters into their own hands (as they did with Airbnb), co-living operators could face restrictions. In this scenario, investors would need to stay informed about regional regulatory landscapes to navigate potential barriers.

If Harris wins, there’s a higher chance of more comprehensive federal oversight on co-living and other innovative housing solutions. While this may seem like a barrier to growth, it could also provide structure and legitimacy to the co-living model, especially for developers who prioritize affordable housing and want to tap into federal funding.

The Future of Affordable Housing in 2024 and Beyond

The 2024 election will undoubtedly shape the future of affordable housing in the U.S., with each candidate offering distinct visions. For real estate investors and those in the co-living space, the outcome could significantly impact their strategies.

A Trump victory could bring more deregulation and less government intervention, potentially making it easier to build and scale co-living projects in less restrictive markets. However, without a strong push for affordable housing, the benefits of these policies may primarily accrue to higher-end developments.

A Harris victory, on the other hand, could bring new opportunities for investors willing to focus on affordable housing, particularly those catering to marginalized communities. Increased government support, grants, and subsidies could make co-living an even more attractive investment model.

As the election draws closer, it will be essential for real estate investors to stay informed and adapt their strategies based on the evolving political landscape. Regardless of who wins, the need for affordable housing will remain a central issue, and innovative solutions like co-living will continue to play a critical role in addressing this ongoing crisis.

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