Understanding the Current Housing Market
First, it’s important to understand the current state of the housing market in the United States. Across the board, the main concern seems to be the affordability (or lack thereof) of housing. In the past few years alone, inflation has led to incredibly high home prices. This, combined with record-high mortgage interest rates, is making it more difficult for the average American to own a home.
So, what are some of the real estate proposals being made by the Harris campaign to alleviate these challenges and create more affordable housing for the American population? Let’s explore some of the potential changes that could be seen.
First-Time Tax Incentives for Builders
For the first time ever, a presidential campaign is proposing a tax incentive for home builders. Specifically, this incentive is designed for builders that will construct affordable starter homes for first-time buyers. Some have praised this proposal, predicting that it will help to make more affordable homes available for first-time buyers while compounding with the Neighborhood Homes Tax Credit to save hard-working Americans money.
Laws Against Predatory Investing and Price Fixing
Another major concern in the current housing market is that of predatory investing and price fixing. Specifically, the Harris campaign has drafted the Stop Predatory Investing Act that was already introduced in the Senate in 2023. This Act would deny taxpayers certain deductions for interest paid or accrued on residential rental properties if they own 50 or more properties during any given tax year.
Likewise, the Harris campaign has stated that it would encourage Congress to pass the Preventing the Algorithmic Facilitation of Rental Housing Cartels Act, a bill that would prohibit the use of algorithms to intentionally inflate rental prices in the United States.
Down Payment Help for First-Time Buyers
With many homes requiring a minimum of a 20% down payment to avoid costly PMI and the price of the average house increasing in recent years, many aspiring homeowners are simply having a hard time coming up with the funds they need for a down payment. The Harris administration has announced plans to alleviate some of this financial burden by providing up to a $25,000 down payment for first-time buyers who have a record of paying their rent on time for two or more years.
Innovation Funds for New Housing
Finally, the Harris campaign has proposed a $40 billion “innovation fund” that is designed to help local developers and builders create more opportunities for affordable housing within their communities. This proposal has actually changed since it was first created, doubling in its size of funding in an effort to encourage new construction methods and innovative financing options.
What This Means for the American People
In general, these proposed changes (if successfully enacted) would give Americans more access to affordable housing over time while making it more difficult for predatory landlords and property managers to take advantage of renters. Overall, these would both be positive outcomes for the majority of Americans.
During an election year, it’s certainly not uncommon for candidates to propose drastic changes related to hot topics in the economy. And while some of these plans have been laid out in detail, some of them remain relatively vague. With this in mind, it’s important to understand that these proposals are just that— actions or efforts that may or may not be made by Harris if she is elected President of the United States.
Only time will tell what the future actually holds for the American housing market. In the meantime, prospective homeowners would be well served to consult with a financial advisor regarding their own plans to purchase a home. With the right foresight and planning, hard-working Americans can determine the best course of action for purchasing a home or getting into more affordable housing.
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