3 million new homes? Harris’ $40B Proposal Focuses on Housing Spending

Vice President Kamala Harris housing supply could shake up the market. Her plan includes $40 billion to build 3 million new homes, prioritizing affordable options such as townhomes, duplexes and apartments. According to Zillow, Harris is committed to addressing the ongoing housing shortage: Despite strong demand, U.S. builders are still 4.5 million homes short.

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In addition to new construction, her plan would offer first-time homebuyers $25,000 in down payment assistance and would expand low-income housing tax credits. The program will also encourage local governments to lift zoning restrictions, especially in urban areas, to allow for denser, more affordable development.

Harris’ plan, detailed in a recent report by Business Insider, contrasts with former President Donald Trump’s approach, which included loosening regulations and freeing up federal land for housing without detailed proposals. Trump is also seeking to curb demand for housing from immigrants, proposing deportations to ease pressure on the market. But with Harris’ investments in multifamily housing, especially in rural America, she is betting on a transformative approach to making housing more affordable.

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Experts disagree on whether this influx of federal funding and tax breaks will lead to lower home prices or increased demand. Some say this could provide a boost to first-time buyers, while others argue it could create a battle that will push prices higher if supply can’t keep up. Either way, both candidates have a strong focus on housing affordability, an issue that resonates with rural and urban voters.

As Harris pushes to increase housing supply, many question whether her plan will effectively cut costs. Housing is a growing problem as millions of Americans spend more than 30% of their income on rent. This burden is particularly severe in urban areas, where restrictive zoning and skyrocketing prices retained many tenants exit the property market.

Harris also hopes to reform housing construction in rural areas where growth has stagnated. Her plan includes $7.2 billion in rural infrastructure investments aimed at spurring economic development outside major cities, according to a memo published by Politico. Expanding housing options in rural America could ease pressure on urban markets, potentially lowering prices overall. This is a two-pronged approach to addressing population density and infrastructure issues.

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However, some analysts believe that increasing supply alone may not be enough. High construction costs, zoning restrictions and a limited workforce could slow Harris’ ambitious goals. The $40 billion proposal is a strong step, but it may take longer than expected for Americans to feel the effects.

If Harris’ housing plan is successful, it could make a significant difference in the US housing market, improving the situation for low- and moderate-income families. access to available options. Her proposal, aimed at addressing the nation’s housing shortage, is poised to change the conversation about housing affordability for years to come.

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This article 3 million new homes? Harris’ $40B Proposal Focuses on Housing Spending originally appeared on Benzinga.com