3 Million New Homes? Harris's $40 Billion Proposal Takes Aim At Housing Costs

Vice President Kamala Harris' housing proposal could shake up the market. Her plan includes $40 billion to build 3 million new homes, prioritizing affordable options like townhomes, duplexes and condos. Harris aims to tackle the ongoing housing shortage – despite high demand, U.S. builders are still short 4.5 million homes, according to Zillow. 

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In addition to new builds, her plan offers first-time homebuyers $25,000 in down-payment assistance and would expand low-income housing tax credits. The program would also incentivize local governments to remove zoning restrictions, especially in urban areas, to allow for denser, affordable developments.

Harris's plan, as detailed in a recent report from Business Insider, contrasts with former President Donald Trump's approach, which involves reducing regulations and freeing up federal land for housing without detailed proposals. Trump also aims to curb housing demand from immigrants, suggesting deportations to relieve market pressure. But with Harris's investment into multifamily housing, especially in rural America, she's betting on a transformative approach to making housing more affordable.

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Experts are mixed on whether this influx of federal funding and tax incentives would push down home prices or boost demand. Some say it could give first-time buyers a leg up, while others argue it could create a scramble that drives prices higher if supply can't keep up. Either way, both candidates are zeroing in on housing affordability, an issue resonating across rural and urban voter bases.

With Harris pushing to increase housing supply, many wonder if her plan will effectively reduce costs. Housing has been a growing issue, with millions of Americans spending over 30% of their income on rent. This burden hits especially hard in urban areas, where restrictive zoning and skyrocketing prices have kept many renters out of the ownership market.

Harris also hopes to reform housing in rural areas, where growth has stalled. According to a memo reported by Politico, her plan includes a $7.2 billion investment in rural infrastructure, aiming to spark economic development outside major cities. Expanding housing options in rural America could relieve pressure on urban markets, potentially lowering prices overall. It's a two-pronged approach to address population density and infrastructure issues.

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However, some analysts believe that increasing supply alone may not be enough. High construction costs, zoning restrictions and a limited labor pool could slow Harris's ambitious goals. The $40 billion proposal is a strong step, but Americans may take longer than anticipated to feel the impact.

If Harris's housing plan takes off, it could significantly shift the U.S. housing market, giving low- and middle-income families better access to affordable options. Her proposal, designed to address the nation’s housing shortage head-on, stands to reshape the conversation around housing affordability for years to come.

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