Kamala Has a Plan for Housing if She Wins the White House

Analysis by Jackson DeGuzman

Vice President, and current presidential candidate, Kamala Harris just revealed her comprehensive campaign plan, titled: “A New Way Forward.” Among her policy ideas and promises, Harris dedicates an entire section of the plan to making “Rent more affordable and home ownership more attainable.” 

Photo credit: Getty images

Harris’ plan for affordable housing consists primarily of increasing housing supply through changes to existing tax credits. She plans to build 3 million new affordable rent/housing units to “end the national housing supply crisis in her first term”. This massive construction project and the necessary innovation will be sparked by a $40 billion tax credit for builders of starter rental homes. Harris plans to accomplish this through expanding the Low-Income Housing Tax Credit to double what was announced by the Biden administration. This plan is based on the estimated shortfall of 3 million homes by economic analysis organization Moody’s, although this is a relatively conservative estimate. The emphasis on lower-cost/starter housing is extremely important to Harris’ agenda, as recent increases to housing construction have so far failed to alleviate the shortfall due to restrictive zoning laws preventing the construction of such projects, especially near commercial areas. Harris also plans to slash “red tape” regulations and institute new ones preventing price-setting tools commonly used by landlords to maximize profits at the cost of renters and homebuyers. 

The second component of Harris’ plan is a generous support plan for first-time home buyers' down payments - the Vice President plans to provide up to $25,000 to help Americans make their first mortgage payment. Aside from the professed benefits to individual pride and representation of security, this policy crucially recognizes a structural need to transition from renting to owning by many Americans. As the economy becomes a focal point of political division, citizens understand that the volatility of renting prices delegitimizes it as an alternative to making stable mortgage payments, especially in the context of rampant price-gouging by landlords following the COVID-19 pandemic. For many middle-low income families, the greatest barrier to entry for becoming first-time homeowners is the down payment, and Harris’ willingness to face this issue head-on indicates good strategy by her campaign.

However, the down payment portion of Harris’ plan has been faced with scrutiny by economists, even within the Harris campaign. Put simply, economists believe it may inflate demand for housing and cause further inflation. This would negate the purpose of the down payment plan and could even reduce the efficacy of the tax credit expansions. Campaign members, according to CNN, believe that Harris can circumvent this issue by enacting the payment plan following her “supply-encouraging” policies, but the timing of each component is still yet to be worked out.

Regardless, Vice President Harris’ plan to fight for affordable housing shows promise. While the matter of actually passing such measures through Congress is still up in the air, Harris’ dedication to working class Americans and their most important concerns will likely make progress in voters’ perception of her ability to handle the economy - currently one of her weakest issues. Ultimately, it will be up to voters to decide whether Harris’ plans are worth a shot this November, and if Montco wants to continue making progress on affordable housing, voting for Kamala Harris is a great step to this end.