As the challenge of finding affordable housing continues for both renters and buyers, presidential candidates are incorporating this issue into their platforms.

Kamal Harris, the Democratic nominee, unveiled a housing proposal in late August, while Republican Donald Trump has been vocal about his views on key issues regarding the crisis.

Though their strategies vary in both substance and methodology, experts believe neither approach truly addresses the problem.

“Harris’s proposal seems unrealistic, and I feel that Trump’s plan lacks depth,” commented Cliff Rossi, a professor at the University of Maryland’s Smith School of Business.

Nevertheless, the increased focus on housing during this presidential campaign indicates the urgency of the situation. As Yonah Freemark from the Urban Institute’s Metropolitan Housing and Communities Policy Center noted, “For the first time in generations, housing is being taken seriously, and we need to tackle this topic.”

Boosting new home construction

Experts agree that expanding the housing supply is critical to easing affordability issues. Harris proposes building 3 million new housing units over the next four years, which Freemark describes as “ambitious, but likely unattainable.”

For perspective, Freemark pointed out that before the subprime mortgage crisis, housing construction numbers reached nearly 1.6 million homes annually in the early 2000s, a level that was almost achieved in 2023 for the first time in years.

However, experts stress that ramping up construction is essential for returning the housing industry to healthier production levels. Additionally, specific strategies in the construction proposals, such as tax incentives for builders, could significantly help to steer the market back towards affordability, according to David Dworkin, president of the nonpartisan National Housing Conference.

“Affordable housing development tends to be far less lucrative than market-rate housing,” Dworkin explained to YSL News. “As costs rise, the profit margins for affordable housing shrink, since many expenses remain fixed.”

Another important factor is to “simplify the permitting process,” which might include providing incentives to local communities, where most of the permitting and regulations are decided, as stated by Dworkin. He mentioned that a more drastic option could involve withholding federal highway funds from areas that hinder the development of affordable housing.

“When a community complicates the construction of affordable housing—a common issue in both red and blue areas—local workers end up commuting from farther away,” Dworkin pointed out. “This leads to more time spent on roads, causing quicker wear and tear. Why should the federal government support this exclusionary system by funding the repair of roads that are suffering from self-imposed issues?”

Assistance for Down Payments

The Harris-Walz initiative proposes $25,000 in down payment assistance for up to 4 million first-time buyers who have consistently paid their rent. Experts argue that this amount might not be sufficient to aid many potential buyers in more costly regions, but it could collectively drive up home prices due to increased demand.

An additional concern is that reducing the entry barrier for more expensive homes might lead some Americans into homes they cannot afford long-term, as noted by Rossi. “The goal is to help people secure homes they can keep” he emphasized.

Dworkin shows more support for the down payment assistance initiative but suggests that funds be channeled through existing state programs and aimed at lower- to moderate-income families to ensure they receive help, as he explained.

Challenges from Wall Street Landlords

The plan suggested by Harris aims to “prevent Wall Street investors from purchasing and inflating housing prices in bulk,” garnering rare agreement from both the Democratic candidate and Republican vice-presidential candidate J.D. Vance, who has criticized large investors since his Senate campaign in 2021.

While major investment firms control around 3% of single-family homes nationwide, which they primarily rent out, experts like Dworkin highlight that their share is significantly higher in certain metropolitan areas, making it difficult for first-time buyers to enter the market.

Utilizing Federal Land for Housing

In a communication to YSL News, Trump’s press secretary Karoline Leavitt mentioned that the former president would aim to “release suitable portions of federal land for housing development.” Experts suggest that this strategy could alleviate housing shortages in selected regions.

Dworkin considers that some properties formerly owned by the military might be viable options, while Rossi highlights certain lands controlled by the Bureau of Land Management in the Las Vegas metropolitan area.

The Role of Immigration

If elected, Trump has pledged to “halt the unsustainable influx of illegal immigrants which is driving up housing prices,” according to his campaign’s email.

Freemark referred to this idea as “the irony of ironies.”

“Our construction workforce heavily relies on labor from Latin America, often including undocumented workers,” he noted. “If we were to remove them, we would face a massive issue. The U.S. economy depends on immigration.”