Vice President Kamala Harris has proposed a plan to address the affordable housing crisis in the United States if she were to win the presidency. Her plan involves expanding President Biden's proposal to provide $25,000 in down payment assistance to first-time homebuyers.
While Biden's plan targeted 400,000 first-generation homebuyers, Harris aims to offer an average of $25,000 in assistance to all first-time homebuyers in the country. This would potentially benefit more than four million people over four years if Harris were to become President.
However, the details of how this assistance would work are unclear, leading to both support and criticism of the proposal. Architect Alexander Gorlin praised the idea but expressed the need for more information, highlighting that $25,000 may not go far in high-priced housing markets like San Francisco.
On the other hand, some experts, like Tony Fiorillo and billionaire Elon Musk, argue that Harris's plan could lead to increased inflation and higher housing prices. Fiorillo believes that the government incentive would create higher demand for homes, further exacerbating the current shortage of available housing.
Despite the criticisms, Gorlin defended Harris's plan, emphasizing the importance of homeownership and building equity. He refuted the notion that the $25,000 assistance would trigger a housing rush, particularly since it is targeted towards starter homes.
In contrast, others, like wealth advisor Cody Moore, view Harris's proposal as a political maneuver to attract votes. Moore criticized the plan, suggesting that it could inflate the real estate market, increase the financial deficit, and potentially lead to higher taxes.
Overall, Harris's affordable housing plan has sparked a mix of opinions, with supporters highlighting its potential benefits for first-time homebuyers and critics expressing concerns about its impact on the housing market and the economy.