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As the Nov. 5 election approaches, voters are starting to understand where the candidates in the 2024 presidential race stand on housing issues. However, sifting through the rhetoric for details of actual policies can be challenging.
Housing policy was not a focus in the Sept. 10 debate between Donald Trump and Kamala Harris, with Harris briefly mentioning some of her proposals and Trump providing no insight into his plans.
The lack of substantive discussion continued in the vice presidential debate on Oct. 1, with the candidates focusing on broader themes rather than specific housing policies. Despite this, the candidates managed to touch on some key housing issues, such as the need for tax incentives and government funding to build more homes.
Moving forward, it will be important for the candidates to address housing supply and demand issues, as well as federal policy and legislative concerns raised by industry groups like the National Association of Realtors and the Mortgage Bankers Association. Voters will be looking for concrete plans to address these critical issues in the housing market. “The ownership of housing and federal lands should be a collective responsibility. Instead of viewing them as commodities for profit, we should focus on refurbishing existing housing stocks to address affordability. Providing down payment assistance to first-time homebuyers may drive prices higher, but it can also lead to stable housing, jobs, and educational opportunities. Various programs exist nationwide to assist homebuyers with down payments. While expanding down payment assistance may be challenging, it is crucial for reducing the racial homeownership gap. The Harris campaign plans to finance its programs, including housing, by raising the corporate tax rate and eliminating tax breaks for the wealthy. Claims blaming immigrants for rising home prices are unfounded, as legal immigration contributes positively to economic growth. While illegal immigration has increased, it has also significantly decreased in recent months. Immigration, both legal and illegal, does impact housing demand. It is important to recognize the benefits of immigration and work towards fair and effective immigration policies.” As of 2022, 49 percent of the foreign-born population in the U.S. were naturalized citizens, 24 percent were lawful permanent residents, and 4 percent were legal temporary residents. Unauthorized immigrants made up an estimated 23 percent of the foreign-born population.
Following a debate, Vance promised to share a Federal Reserve study on the impact of increased migration, particularly illegal immigration, on housing prices. However, he only posted brief remarks by Federal Reserve Governor Michelle Bowman about how immigration could affect rents.
Inflation has been a key factor driving up housing costs, with the Federal Reserve’s actions during the pandemic leading to low mortgage rates and increased demand for housing. Vance suggested that increasing domestic oil production could help lower housing prices by reducing energy costs, which he claimed were a significant driver of housing costs.
The National Association of Homebuilders reported a significant increase in the cost of building materials, attributing it to faulty supply chains and tariffs on imports. Trump has proposed tariffs on Chinese imports and goods from other countries, which have been criticized by some as potentially harmful to the economy.
The Harris campaign has outlined a 10-page housing platform, focusing on expanding housing supply and targeting corporate landlords and investors. Their proposals include tax incentives for affordable housing construction and measures to prevent price fixing by large landlords.
The Republican Party’s platform includes goals to reduce mortgage rates, promote homeownership through tax incentives, and cut regulations that increase housing costs. Project 2025, a policy document put together by conservative organizations, outlines further recommendations for housing policy under a potential Trump administration.
Ben Carson, former Secretary of Housing under Trump, has called for a “reset” of the Department of Housing and Urban Development to reverse progressive policies implemented by the Biden administration. The document aims to address issues such as climate change and appraisal bias in housing policy. In 2022, FHFA Director Sandra Thompson emphasized the need to reform the housing finance system, with Fannie Mae and Freddie Mac playing a crucial leadership role in addressing the issue. However, Ben Carson suggests different solutions, such as raising mortgage insurance premiums on FHA loans and eliminating the Housing Supply Fund established by the Biden administration.
Carson argues that simply constructing more affordable housing units will not fully solve the housing supply problem. Instead, he believes that focusing on developing new units at a more efficient cost and targeting mid-tier rental units will promote upward mobility in the housing market.
Project 2025, led by authors William Walton, Stephen Moore, and David Burton, criticizes the Treasury Department’s current agenda under Secretary Janet Yellen, accusing it of prioritizing “equity” and “climate change.” They advocate for the privatization of Fannie Mae and Freddie Mac to create a sustainable housing finance market without relying on taxpayer guarantees.
While some experts believe that privatization could impact mortgage costs, the exact extent of these changes remains uncertain. The Harris campaign estimates that privatizing Fannie Mae and Freddie Mac could potentially add $1,200 a year in additional interest costs to the average American mortgage, based on a previous analysis by Moody’s Analytics and The Urban Institute.