Additional Coverage:
- Kamala Harris has an ambitious plan to build 3 million new homes. She’ll have to get through Congress and local NIMBYs first. (newsbreak.com)
During a recent speech in Raleigh, North Carolina, Democratic presidential candidate Vice President Kamala Harris presented her economic strategy, spotlighting her initiative to address the national housing crisis. The cornerstone of her plan includes the construction of three million new homes within four years with a focus on affordability through various incentives for builders.
Harris’ comprehensive housing proposal encompasses a variety of tax incentives aimed at encouraging the construction of starter homes tailored for first-time homebuyers, as well as expanding existing credits for developers building affordable rental properties. Further amplifying her commitment to housing, Harris has proposed to double the existing $20 billion housing innovation fund, enhancing support for local governments and developers engaged in innovative affordable housing projects. Additionally, her strategy seeks to minimize bureaucratic hurdles that currently impede housing construction.
Amid a severe housing shortage that is escalating home prices, Harris’ plan not only aims to increase the supply of housing but also features regulatory changes like tackling issues with investors purchasing homes in bulk and landlords using algorithms for rent settings. Her campaign has also suggested improving the Biden administration’s aid to first-time homebuyers by proposing $25,000 in down payment assistance on average.
Experts like Jenny Schuetz from the Brookings Institute commend the goal-setting aspect of Harris’ strategy, though they emphasize the unpredictability of such large-scale construction outcomes. Similarly, at the Bipartisan Policy Center, Andy Winkler highlights the potential bipartisan appeal of supply-side tax incentives, especially during discussions of tax reform anticipated in 2025. Winkler, however, remains skeptical about achieving the ambitious target of three million new homes in the next four years.
For Harris’ plan to materialize, significant support and funding from Congress are necessary, compounded by the need for state and local governments to relax land-use and other housing-related regulations. Although federal initiatives can promote local regulatory reforms, the real potency of federal influence is limited, posing substantial challenges in fundamentally altering housing construction practices across the nation.