Candidates’ Plans to Address America’s Housing Crisis

America’s Housing Crisis: A Closer Look at the Candidates’ Proposals

The pressing shortage of affordable housing in America has surged to the forefront of voter concerns and campaign pledges as the election approaches. Both the Democratic nominee, Kamala Harris, and the Republican candidate, Donald J. Trump, have made commitments to address this critical issue should they be elected. However, their strategies for tackling America’s affordable housing crisis diverge significantly, with Ms. Harris offering a more comprehensive and detailed plan. Despite their differences, both candidates face skepticism from economic experts regarding the effectiveness of their proposals.

Ms. Harris is advocating for a mixture of tax incentives aimed at stimulating home construction. Several economists believe that her approach could indeed contribute to increasing housing supply. However, she is also proposing a substantial $25,000 benefit designed to assist first-time homebuyers in entering the market. This aspect of her plan raises concerns among many economists, who fear it may excessively inflate demand, consequently driving home prices even higher. Moreover, both candidates’ initiatives would require Congressional approval, which could significantly influence their design and the likelihood of successful implementation.

On the other hand, Mr. Trump’s plan is attracting even greater skepticism. He has pledged to deport undocumented immigrants, a move that could temporarily reduce housing demand but is likely to adversely affect the construction workforce, ultimately limiting new housing supply. Additionally, his strategy includes proposals to lower interest rates—a move he has no direct control over and which may happen independently of his influence.

The doubts expressed by economists regarding the housing market policies underscore a sobering reality: there are few swift solutions available for a housing shortfall that has developed over more than 15 years, exacerbated by shifting demographic and societal trends. While bold promises may resonate well during debates and campaign advertisements, translating those promises into actionable policies to alleviate the national housing crisis is likely to be a complex and protracted process—despite the urgent need for such measures.

Here’s a breakdown of what the candidates are proposing, along with expert insights on their plans:

Harris: Expanding Housing Supply Through Tax Credits

Ms. Harris aims to enhance housing availability by expanding the Low-Income Housing Tax Credit. Her strategy includes:

• Boosting incentives for state and local investments in housing development.
• Establishing a $40 billion tax credit to make affordable housing projects economically viable for builders.