As the 2024 US Presidential election draws near, the housing market is once again a key topic of discussion for both candidates. President Donald Trump and Vice President Kamala Harris have both proposed plans to tackle the housing crisis, but their approaches differ significantly. Let’s take a closer look at what each candidate proposes and what it could mean for the housing market.

Trump’s Approach
President Trump’s plan focuses on reducing regulatory hurdles to building new homes and lowering mortgage rates. He has proposed opening tracts of federal land for housing development, removing restrictive regulations on homebuilding, and addressing the mortgage interest deduction. Additionally, he wants to take Fannie Mae and Freddie Mac out of conservatorship, which could increase competition in the mortgage market and minimize taxpayer exposure. However, some experts warn that this move could raise mortgage costs for consumers.

Harris’s Approach
Vice President Harris’s plan, on the other hand, emphasizes building more affordable housing units and providing down payment assistance to first-time homebuyers. She proposes building 3 million new housing units over the next four years, spurred by a tax break incentivizing home builders to create more starter homes. She also plans to provide up to $25,000 in down payment assistance for eligible first-time homebuyers and impose restrictions on how landlords determine rent increases and limits on tax breaks for institutional investors who buy single-family homes. Critics argue that some of these proposals, such as rent caps, could have unintended consequences, such as limiting supply and exacerbating the housing affordability crisis.

Impact on the Housing Market
It’s unclear which candidate’s proposals would be more effective in addressing the housing crisis. Both plans have their merits and potential drawbacks. Trump’s focus on reducing regulatory barriers and increasing competition in the mortgage market could lead to more affordable housing options, but it could also result in higher mortgage costs for consumers. Harris’s emphasis on building more affordable housing units and providing down payment assistance could make homeownership more accessible for first-time buyers, but her rent cap proposal could have unintended consequences.

In conclusion, the housing market is a critical issue in the 2024 Presidential election, with both candidates proposing different solutions to tackle the affordability crisis. While Trump’s approach focuses on deregulation and increasing competition, Harris emphasizes building more affordable housing units and providing down payment assistance. Regardless of who wins the election, addressing the housing crisis will require a multifaceted approach that considers the needs of both buyers and renters.

Published by esbiz.net