Voters across are worried about the rising expense of housing, which is putting a strain on the budgets of many renters and would-be homeowners.
The U.S. Census Bureau reports that in 2023, over 30% of all renter households were cost-burdened, meaning that housing costs ate up about half of their income.
Plus, how much do houses cost? Clever Real Estate, a website that offers real estate guidance, provided an analysis of housing data in March showing that they have increased at a rate that is 2.4% faster than inflation since the 1960s.
Instead of the current $431,000, the analysis indicated that the median home might cost only $177,000 if only housing prices kept up with inflation.
During Tuesday’s presidential debate, former president Trump and vice president Kamala Harris discussed housing policy, with Harris praising her recently revealed policy proposals multiple times.
“We know that we have a shortage of homes and housing, and the cost of housing is too expensive for far too many people,” according to her.
See what initiatives Harris and Trump have indicated they would support on housing and rent if elected in November.
The suggestions put forth by Harris
In an effort to alleviate the current scarcity, Harris has proposed a tax credit for businesses who develop one million new housing units with the intention of selling them to first-time homebuyers.
The vice president’s plan also has a $40 billion fund to assist local governments with “innovative methods” of constructing affordable housing that have been effective, bringing up the example of North Carolina’s Wake County housing projects.
She is in favor of the Stop Predatory Investing Act, which would eliminate tax breaks for big investment firms and Wall Street banks that buy up numerous single-family rental properties and then charge exorbitant fees for them.
To prevent the use of algorithmic systems to artificially increase the price or decrease the availability of leased or rented residential dwelling units, Harris is also in favor of passing the Preventing the Algorithmic Facilitation of Rental Housing Cartels Act.
Harris also intends to offer first-time homebuyers $25,000 in down payment assistance, with additional assistance for first-generation homeowners.
Trump’s agenda
As part of his plan to lower housing costs, Trump has promised to do away with some building restrictions.
No particular rules or regulations were mentioned by the former president as ones he intends to do away with. His signature on the Tax Cuts and Jobs Act of 2017 decreased the corporate tax rate and established Opportunity Zones, where investors can put money into low-income neighborhoods and put the tax on their earnings (for a while) on hold.
Additionally, Trump intends to release parcels of federal property for massive home development.
“These zones will be ultra-low tax and ultra-low regulation,” he stated during a Q&A at The Economic Club of New York on Sept. 5.
Among Trump’s stated goals and plans is a prohibition on mortgages for individuals without proper documentation, which he blames for driving up property prices. Officials and researchers have pointed fingers at high mortgage rates, a lack of available homes, rent gouging, and escalating building costs and supply chain bottlenecks as causes of the housing market’s recent price spike.
One of Trump’s stated goals in his agenda47, which details his policies in the event of his election in November, is to “promote homeownership through Tax Incentives and support for first-time buyers.”