Kamala Harris Unveils Latest Proposal To Boost Housing Supply, Aid Potential Homeowners
Presumptive Democratic presidential nominee Kamala Harris unveiled new proposals that would incentivize developers to build much-needed housing as part of her economic plan.
The vice president announced plans to call for 3 million new housing units in her first four years as president, The Wall Street Journal reported. The proposal is part of plans she is expected to reveal on Friday afternoon in Raleigh, North Carolina.
The plan comes as housing costs have skyrocketed, with affordability becoming one of the top concerns for U.S. residents.
Harris has laid out economic incentives for developers to juice the housing supply, including a proposed tax incentive to build housing for first-time buyers.
Harris also proposed a $40B fund to help local governments find solutions to their housing crunches. Similar to one that was proposed by the Biden administration, the proposal would also expand the Low-Income Housing Tax Credit.
Harris has also shown interest in cracking down on investors who buy and mark up single-family home prices, Quartz reported. She said she would call on Congress to pass the Stop Predatory Investing Act, which would remove tax benefits for large investors that acquire single-family rentals.
Although high interest rates and low supply have slowed investment in the space, institutional investors could control more than 40% of U.S. single-family rental properties by 2030, according to MetLife Investment Management.
Two of the biggest private investors in the space are Invitation Homes, which owns more than 80,000 homes, and AMH, which owns more than 53,000 single-family homes. Blackstone owns roughly 63,000 single-family units across the country.
Harris proposed other initiatives, including expanding the child tax credit up to $3,600 per child and new price controls on groceries and prescription drug prices, BNN Bloomberg reported.
CORRECTION, AUG. 23, 11:15 A.M. ET: A previous version of this story incorrectly stated the type of housing that institutional investors are expected to own 40% of by 2030. The story has been updated.
