The United States is currently facing a severe housing crisis, with a chronic undersupply of homes leading to skyrocketing prices. This issue has been exacerbated by the COVID-19 pandemic, as more people seek larger living spaces, further straining the housing market and driving up rent prices.
Vice President Kamala Harris and former President Donald Trump have presented differing approaches to address this pressing problem.
Vice President Kamala Harris's Plan
In August, Vice President Harris unveiled a comprehensive plan aimed at lowering housing costs. One key provision of her plan includes offering up to $25,000 in down-payment support and a $10,000 tax credit for first-time home buyers. Additionally, Harris proposes partnering with the private sector to construct 3 million new housing units. She also plans to introduce a tax incentive to incentivize home builders to focus on constructing starter homes for first-time buyers.
Harris's plan also includes proposals to reduce rent costs, although these measures would require congressional approval, potentially posing challenges to implementation.
Former President Donald Trump's Approach
In contrast to Harris, former President Trump has not released a formal housing plan. However, he has linked his housing strategy to deporting undocumented immigrants, whom he blames for driving up housing costs. Trump has suggested banning undocumented immigrants from obtaining mortgages as part of his approach.
Both Trump and Harris have pledged to repurpose federal land for affordable housing. Trump has also highlighted falling interest rates as a means to lower mortgage rates, aiming to bring them down to around 3% or even lower, which he believes could save the average homebuyer thousands of dollars annually. It is important to note that mortgage rates are typically influenced by the 10-year US Treasury yield, a factor that presidents do not directly control.
As the housing crisis continues to impact Americans across the country, the contrasting plans of Vice President Kamala Harris and Former President Donald Trump offer distinct approaches to addressing this critical issue.
