With Election Day just weeks away, the presidential candidates have been laying out plans on everything from prescription costs to the Middle East. How would the nominees’ proposals shape the future of homeownership, rental markets, and overall affordability?
Whether you’re a first-time buyer, a longtime homeowner, or someone navigating the rental landscape, the candidates’ policies could have a direct impact on your housing situation. The Escape Home breaks down three key aspects of how this election could influence the housing market: former president Trump’s ambitious deregulation plans, Vice President Kamala Harris’ commitment to affordable housing, and the broader ways elections historically affect real estate trends.
Harris’ plan
Harris is proposing a massive investment in affordable housing, including billions for public housing repairs and new construction.
“We are going to work with the private sector and homebuilders to increase [the housing supply] by 3 million homes by the end of my first term,” Harris said last month during the presidential debate.
Harris’ plans to create a fairer rental market include supporting the “Stop Predatory Investing Act” and backing another bill to address the rent-setting based on algorithms that enables price-fixing.
She has also proposed expanding rental assistance programs and introducing new tax credits for first-time homebuyers. Harris has promised a $25,000 down payment assistance for first-time homebuyers who have paid rent on time for two years, with additional support for first-generation homeowners.
Trump’s plan
By contrast, Trump’s housing strategy focuses on deregulation. He has promised to slash red tape for developers, making it easier to build new homes.
“Regulation costs 30% of a new home, and we will open up portions of federal land for large-scale housing construction,” he said last month during a talk at the Economic Club of New York, as Spectrum News first reported. “These zones will be ultra-low tax and ultra-low regulations — one of the great small business job creation programs.”
Trump has also mentioned rolling back some environmental regulations he claims are holding up construction. His team argues this approach will increase housing stock and make homes more affordable for average Americans.
How housing is generally impacted by elections
Elections tend to create uncertainty in the housing market, which can lead to short-term fluctuations. Historically, home sales have slowed in the months leading up to a presidential election, as buyers and sellers often adopt a wait-and-see approach. But the long-term impact depends more on the policies implemented post-election rather than the election itself.
The bigger picture
It’s important to remember that presidents don’t control the housing market single-handedly. Factors like interest rates, set by the Federal Reserve, and broader economic conditions play significant roles. That said, policies around zoning, tax incentives, and federal housing programs can still influence market trends.
Policy experts recommend keeping an eye on how each candidate’s plans might affect:
– First-time homebuyer programs
– Rental market regulations
– Construction industry incentives
They say it’s also good to remember that campaign promises don’t always translate into policy. The makeup of Congress will be just as important in determining which housing initiatives become reality.