Kamala Harris has introduced a comprehensive three-part plan to tackle the housing shortage in the United States. This plan, which complements proposals previously put forth by Joe Biden, aims to address various aspects of the housing crisis.
One key component of the plan is the provision of up to $25,000 in down-payment support for first-time homebuyers. This support will be available to working families who have a track record of timely rent payments over two years, with additional assistance offered to first-time buyers. Additionally, a $10,000 tax credit for first-time homebuyers is included in the plan, a measure that was initially proposed by Biden earlier this year. The campaign estimates that over 1 million first-time buyers, including those from the first generation of homebuyers, could benefit from these funds annually.
Another significant aspect of Harris's plan is the proposal to construct 3 million new housing units. To incentivize construction, the plan includes a novel tax incentive for builders who develop starter homes specifically for first-time buyers. Furthermore, an existing tax incentive for the construction of affordable rental housing would be expanded under this plan.
The plan also addresses the issue of rising rent costs in the country through two key proposals. Firstly, it seeks to prohibit landlords from using algorithm-driven tools to set rental prices, aiming to ensure fair and reasonable rent levels. Secondly, the plan aims to deter wealthy investors from purchasing properties in bulk and subsequently inflating rental prices. This would be achieved by eliminating tax benefits for investors who acquire large numbers of single-family rental homes.
