Housing is a Top Issue in the Election
The housing crisis is going to be hard to tackle for any president.
For the first time in decades, housing affordability is a major topic in the presidential election. Housing is the largest monthly expense for Americans, and rising costs are leaving people with less money in their budgets.
There's a shortage of affordable homes in the U.S. which is causing prices to continue to rise. Meanwhile the pace of construction has never picked up since the housing recession in 2008, and yearly demand has put more pressure on supply. Along with inflation, the pandemic created more of a gap in the housing market.
There's a big difference between the two candidates’ views and plans when it comes to the economy.
Vice President Harris sees the problem as a lack of supply and proposes building more affordable homes with tax breaks for builders and help for first-time buyers by giving them a $25,000 tax credit. Harris proposes 3 million units to ease housing shortage.
Former President Trump, who began his career in real estate, focuses on reducing demand, blaming immigrants for the shortage and calling for limits on their ability to buy or rent homes. Trump plans to open up federal lands for housing development.
The current housing shortage goes back to the 2008 housing crash when a large number of home builders went out of business.
The housing crisis is going to be hard to tackle for any president. Many of the zoning and regulation issues that hold back new housing are local and state issues and not something that can be easily fixed by the White House. Regardless of views, the housing crisis is a complex, long-term issue that will be tough to solve, especially since many of the regulations are controlled at local and state levels.
Many potential buyers are holding off due to high home prices, which remain near record levels despite easing mortgage rates.