I’m a Lending Expert: 4 Predictions for the Housing Market If Kamala Harris Wins the Election
The presidential election is just a few months away. If you’re like many Americans, you might be wondering how the outcome could affect big life decisions such as buying or selling a home.
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Kamala Harris, the presumptive Democratic nominee, could bring significant changes to housing policies and programs across the nation if she wins.
“If Kamala Harris wins the election, the housing market might see more affordable housing projects and increased opportunities for first-time homeownership,” said Rick Kuci, COO of FundKite. “These efforts could lead to a more inclusive housing market and potentially stabilize housing prices, making homeownership more accessible to many.”
Here are Kuci’s four predictions for the housing market if Harris were to become president.
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Affordable Housing
Kuci said Harris likely would push for more funding for affordable housing. This could take the form of investing in construction of more affordable housing units, with a focus on areas where housing costs are high and supply is limited.
This could mean both renters and homebuyers have more housing options, which might end up lowering costs for everyone. And the investment could mean a surge in new construction projects, which could in turn create more jobs in the building and construction industries. But large-scale housing projects take a long time for planning, approval and construction — meaning the full impact of this initiative wouldn’t really be seen for years.
If you already own your own home, then the expansion of affordable housing options could have mixed effects for you. An increase in affordable housing units might lead to a slight decrease in property values for the homes in that area. But this could be offset if the new development also creates more economic activity there.
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Tax Incentives for First-Time Buyers
Harris could create or strengthen tax incentives and programs meant to make homeownership more accessible for first-time buyers, Kuci said.
For instance, earlier this year, Biden pitched an idea that could be a game changer for many would-be homeowners. He wants to give families a tax credit of up to $15,000 to help cover down payments and closing costs when buying their first homes. While this hasn’t become law yet, Harris likely would push for it if she wins. Many people who dream of owning homes find that saving for the down payment is one of the biggest barriers they face, and this tax credit would help lower that barrier.
Stricter Regulations on Predatory Lending
Kuci said another aspect of Harris’ housing policy could be an attempt to strengthen consumer protections for mortgages. This likely would take the form of regulations intended to prevent predatory lending practices.
This could mean stricter enforcement of fair lending laws that already exist. These rules might make it harder for some people to get home loans; but, in the long run, it could make the housing market safer for everyone. By making sure people can really afford their home loans, these rules could help stop another situation like the one that caused the last major economic crisis.
Tenants’ Rights and Rent Stabilization
Harris also could focus on expanding protections for renters, Kuci said. This would mean strengthening eviction prevention programs. This could impact the rental market, potentially affecting property values and investment opportunities for landlords and real estate investors.
“Harris has been a strong proponent of tenants’ rights and rent stabilization,” Kuci said.
Harris’ administration could potentially provide federal support or incentives for states and cities to implement rent control measures.
These policies could provide greater stability for renters and protection against sudden rent hikes. It could impact the rest of the housing market as well. If renters have more rights and steady rent, they might choose to rent for longer instead of buying a home. This could mean fewer people looking to buy their first homes. In places with strong rent control, some landlords might decide to convert their rental properties into condos instead. This would mean more homes for sale in those areas.
Editor’s note on election coverage: GOBankingRates is nonpartisan and strives to cover all aspects of the economy objectively and present balanced reports on politically focused finance stories. For more coverage on this topic, please check out I’m an Economist: Here’s My Prediction for the Housing Market If Trump Wins the Election.
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