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The big question is whether these actually would work to combat the financial hammering the middle class is taking.
Five years ago, only nine of these areas were considered unaffordable.
Purchasing a home requires overcoming two challenges, said Kates.
Accruing the down payment and maintaining the cash flow of the monthly payments.
The $25,000 assistance [Harris is proposing] would shut the gap for many borrowers.
However, there is a potential downside to the plan, Kates said.
The only downside of the assistance plan would be the upward pressure it would apply to home prices.
Then came the crash, and with it, a pull back in housing starts.
We have chronically underbuilt new housing, and that has contributed to the higher home prices we see today.
Enter the 3 million new housing units Harris has called for.
He said this would alleviate some of the pressure on middle-class buyers competing for properties.
The faster the new housing arrives, the more impactful it will be on housing prices and inflation measures.
This can quickly become untenable and impact other aspects of a familys life.
This might help propel them into the middle class.
In addition, this proposal could help with an even more important goal: pulling children out of poverty.
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