Vice President Kamala Harris will announce a comprehensive four-year strategy on Friday aimed at reducing housing costs. The plan includes a $25,000 down payment assistance program for first-time homebuyers and incentives to boost new housing construction, according to Harris-Walz campaign officials.
Harris will reveal the plan during an economic policy speech in North Carolina, CNN reported.
The Biden-Harris administration has faced significant challenges in managing housing and food costs, despite recent declines in inflation. While White House officials have highlighted the overall improvement in the economy, they acknowledge that many Americans still struggle with high prices for essential goods.
"We hear you. The president hears you. The vice president hears you," said Jared Bernstein, chairman of the Council of Economic Advisers, during a recent White House briefing.
Harris' housing plan builds on initiatives previously introduced by Biden and includes several key components aimed at increasing homeownership and addressing the housing shortage.
The proposal offers up to $25,000 in down payment assistance for first-time homebuyers, particularly targeting working families who have consistently paid rent on time. This support would be coupled with a $10,000 tax credit for first-time buyers, an idea Biden had earlier promoted.
The Harris campaign estimates that over 1 million first-time buyers, including first-generation homeowners, could benefit from this program annually.
"Many Americans work hard, save, and pay their rent on time, but they struggle to save enough for a down payment," the campaign said.
"This plan gives them a chance at homeownership and wealth-building."
To address the housing shortage, Harris will call for the construction of 3 million new housing units. Her plan includes introducing a tax incentive for builders who focus on creating starter homes for first-time buyers and expanding existing tax credits for affordable rental housing development.
"There's a serious housing shortage across America, and it's driving prices up," the campaign said.
Harris will also advocate for a $40 billion innovation fund — double the size of a similar proposal from the Biden administration — to encourage affordable housing construction. This fund aims to empower local governments and developers to adopt innovative construction methods and financing.
Harris also seeks to repurpose federal land for affordable housing, similar to the ideas proposed by Biden and former President Donald Trump.
The plan targets high rent costs with two major proposals: preventing landlords from using algorithm-driven tools to set rent prices and removing tax benefits for investors who buy large numbers of single-family rental homes, which often leads to increased rents.
