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How about 3 million more housing units?
This is what Democratic presidential candidate Kamala Harris would like to do if elected.
Unfortunately, Harris housing proposalcomes with a few potential problems.
However, it still doesnt address supply constraints.
Harris stands behind building 3 million new housing units to eliminate constraints, but is this really doable?
Offering eligible homebuyers this assistance has the potential to further inflate prices.
Homebuyers who dont qualify for the down-payment assistance program might be priced out of the market.
With high interest rates and the cost of living continuing to climb, homebuyers are price sensitive.
Increasing the number of buyers and available funding would negatively impact pricing through added competition.
Some experts think that plan is unlikely to gain bipartisan support.
In addition, local jurisdictions still decide whether to buildadditional housing units.
The plan has two levels: first-time homebuyer assistance and first-generation homebuyer assistance.
There are also additional requirements based on your specific situation, like aspecific debt-to-income ratio.
The first-generation homebuyer assistance program is more lenient but is very difficult to qualify for.
At the most basic level, your parents or grandparents cannot have owned a home to qualify.
One proposed item is removing tax benefits for businesses that own 50 or more single-family homes.
While this may prevent corporations from purchasing properties, it also would slow downmajor housing developments and neighborhoods.
In addition, the short-term rental market already has seen a decline in occupancy rates.
Eliminating algorithmic software pricing would have a direct impact on small businesses operating in the short-term space.
Would the administration micromanage every small county to ensure compliance withnew housing regulations?
What types of projects would be eligible for funding, and where would individuals go for short-term stays?
Like any proposed plan, the details would not be transparent until something is actually passed.
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