Housing Crisis: A Key Challenge for Kamala Harris
Vice President and Democratic nominee Kamala Harris has vowed to confront the housing crisis, an issue affecting young people, minorities, and low-income voters, and one that could influence the motivation behind her campaign. Since the pandemic, rental costs and mortgage rates have risen significantly, exacerbating financial inequalities and driving up housing prices.
Kamala Harris' Proposals for Affordable Housing
At a recent event in North Carolina, Harris laid out her economic proposals, which include a $40 billion fund to build new affordable housing, a $25,000 tax credit for first-time buyers, and support for legislation to limit the mass purchase of homes by corporations that inflate rental prices. Additionally, more than a million first-time buyers with two years of on-time rent payments could receive help with their home down payments.
“By the end of my first term, we will have solved America’s housing shortage by building 3 million new affordable homes for the middle class,” Harris said in her speech in North Carolina, a crucial state for the elections.
Housing Affordability: Concerns of Gen Z and Millennials
A Bloomberg News/Morning Consult survey from late July shows that housing affordability is a concern for both Gen Z and Millennials. The perception that homeownership is becoming unattainable is growing, linked to the American dream and wealth creation.
Support for Democrats among renters has declined due to rising median rent in the U.S., which has risen 47% since 2019, according to the Census Bureau. Housing affordability is at its lowest point on record, with half of renters spending more than 30% of their income on housing and utilities, according to a Harvard University study.
Impact of the Housing Crisis on the Real Estate Market
In parallel, home prices continue to rise. In June, the median price of existing homes hit a record $426,900, according to the National Association of Realtors (NAR). The Trump campaign has criticized Harris' policies, arguing that the Biden-Harris agenda has made the American dream of homeownership unattainable. In response, Democratic activists and analysts see Harris as an opportunity to revitalize the 2020 Democratic coalition, highlighting the Biden administration's efforts to reduce housing costs.
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