Real Estate In Focus: Could A Kamala Harris Presidency Transform The Housing Market? Experts Weigh In

Vice President Kamala Harris’s sudden ascension as the presumptive Democratic nominee for the 2024 presidential race has caused experts to examine how a potential Harris presidency might shape the nation’s housing policies.

Harris’s background as California Attorney General during the aftermath of the 2008 financial crisis provides her with experience in housing finance issues, according to a report issued Monday by Housing Wire. She negotiated with big banks to provide $20 billion in debt relief to homeowners in California after an initial $2 billion offer. 

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However, Housing Wire noted that her 2020 campaign housing proposals focused primarily on boosting Black homeownership and providing tax credits to rent-burdened tenants, leaving questions about her current stance on addressing the housing shortage.

David Dworkin, president and CEO of the National Housing Conference, told Housing Wire he hopes "that the Harris campaign will put all of their policies through the filter of what’s going to result in the most affordable housing because that’s what we need right now."

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Many experts believe that zoning limitations in certain states, which prohibit dense housing construction, need to be modified to address affordable housing. Jenny Schuetz, senior fellow at Brookings Metro, noted the limitations of federal policy in directly addressing housing production. "They've been creative about what you can do, but those are just going to be relatively small policies around the edges," Schuetz said to Housing Wire.

One immediate question is whether Harris will support the Biden campaign’s recent proposal to cap rent increases at 5% nationally for two years on properties with more than 50 units. While already having a slim chance of passing in Congress, the plan has faced criticism from real estate industry professionals who argue it could have unintended negative consequences.

Jay Parsons, a rental housing economist, said on X that the plan "lacked seriousness," as it exempts most "single-family rental homes while targeting most apartments."

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Eric Hagen, an analyst at BTIG, suggests that housing finance may not be a top priority for a Harris administration. “I’d be surprised if her administration started commenting on bank capital, with so much going on in the world,” Hagen said, referring to the ongoing debate over Basel III regulations and their potential impact on mortgage lending.

The Biden administration has implemented several initiatives to address the housing shortage, including changes to the Low-Income Housing Tax Credit program and new HUD grant programs. However, whether Harris would continue the efforts or chart a new course is unknown.

With affordability remaining a top issue for millions of Americans, voters may be watching to see how Harris addresses the challenges facing the housing market. Her approach to housing policy could have far-reaching implications for the sector and the broader economy.

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