Harris and Trump Have Differing Plans to Solve Housing Crisis

Published On Aug 30, 2024, 5:05 AM

Vice President Kamala Harris and former President Donald Trump, the 2024 presidential nominees, have proposed different approaches to address America's affordable housing crisis, which is a growing concern among voters. Harris's plan emphasizes tax cuts to encourage home construction and offers a $25,000 benefit for first-time buyers, which may inadvertently raise demand and prices. Trump suggests policies such as deporting undocumented immigrants to reduce demand and lowering interest rates, though he has no control over rate adjustments. Economists express skepticism about both candidates' plans, indicating that effective solutions for the housing shortage will likely be complex and take a long time to implement.

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Stock Forecasts

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Negative

Harris's tax incentives may spur some short-term construction but could also lead to inflation in housing prices due to increased demand without sufficient supply. Trump's focus on reducing immigration may not provide a sustainable solution for the housing supply, as it risks worsening labor shortages in construction.

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Negative

As economic uncertainty continues and with rising demand for housing solutions, the home construction and real estate sectors may face volatility. Investment in housing-related ETFs like ITB (iShares U.S. Home Construction ETF) could be risky given the upcoming election and potential policy shifts.

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