A Look at Kamala’s Housing Plan

Housing affordability’s becoming a bigger issue in the U.S., and Kamala Harris thinks she knows how to solve the problem. (Newsweek)

The plan: Harris has proposed subsidies for the construction of 3 million new housing units over four years.

• She also wants to give 4 million first-time homebuyers up to $25,000 each in assistance - this would cost $100 billion.

A new AEI Housing Center analysis: According to AEI researchers, “the cumulative effect of her plan would inflate home prices across the national housing market by $1 trillion” over four years.

• Home prices in affected areas are expected to rise by an average of 4.1% during this period.

• 75% of recipients (3 million) could likely purchase homes without additional assistance, reducing the plan’s cost-effectiveness.

Zoom out: A Zillow analysis from June found the U.S. housing deficit had grown to 4.5 million homes.

Bubba’s Two Cents

Both Harris and Donald Trump have been accused of effectively trying to buy votes with their economic proposals, which are heavy on promises but vaguer on the consequences and costs.