The Vice President of the United States and the Democratic nominee for the 2024 presidential election, Kamala Harris, has pledged to build more housing as a core solution to the rising cost of living in America. The increasing housing prices have put pressure on American families and have become one of the most concerning issues for voters.
According to a report by Reuters, although she deliberately avoided certain policy details during the first month of the presidential campaign, Harris has already outlined a detailed plan, focusing on stimulating new housing construction through tax incentives to reduce costs for renters and homebuyers.
During her acceptance of the Democratic presidential nomination last week, she stated, “We will put an end to America’s housing shortage.”
A survey conducted by Reuters/Ipsos in May found that voters ranked housing costs as their second biggest economic concern, following worries about inflation and stagnant incomes.
Data from Moody’s Analytics shows that housing construction was paralyzed during the 2007-2009 financial crisis, with slow recovery in the following years, resulting in a shortage of 2.9 million housing units in the United States.
The shortage of building materials due to the pandemic has driven up the prices of new homes, while rising interest rates have made mortgages more expensive.
According to real estate company Zillow, housing prices in the United States have increased by 50% in the past five years, with rents rising by 35%.
Democratic strategist Alyssa Cass suggests that Harris’s housing plan could help garner support from voters, as economic issues have been paramount in this year’s presidential election, with housing problems being one of the most concerning focal points.
Cass points out that any measures that can lower housing costs are likely to satisfy voters.
On August 16, during a campaign event in North Carolina, Harris called for the construction of an additional 3 million housing units in the next four years on top of the current annual construction rate of 1 million units in the private sector. The government’s incentive measures include providing new tax incentives for developers building homes for first-time buyers and offering a $25,000 tax break for these buyers.
She also proposed setting up a $400 billion fund to encourage local governments to build more affordable housing, simplify regulations, and expand rental assistance programs.
According to the Committee for a Responsible Federal Budget, a bipartisan public policy research organization, these policies are estimated to cost at least $200 billion over 10 years.
If elected president, Harris may face challenges in enacting these policies into law, as similar proposals by President Biden have not been approved by Congress.
Harris did not specify whether she would push for local government to relax regional regulations, but she has been involved in efforts by the Biden administration in this regard.