Kamala Harris Pledges 3 Million New Homes Plan

Kamala Harris Unveils Plan to Address U.S. Housing Shortage

Vice President Kamala Harris has announced a groundbreaking proposal to combat the U.S. housing shortage by committing to construct 3 million new homes by the end of her first presidential term. The plan, presented in Raleigh, North Carolina, underscores her determination to collaborate with the industry to surmount obstacles such as restrictive zoning and other local regulations that frequently impede housing production.

Additionally, Harris has pledged to confront the issue of corporate landlords utilizing software to manipulate rental rates. She has assured the implementation of legislation to curtail such practices and has drawn attention to the ongoing Department of Justice investigation into companies like RealPage for suspected price-fixing. Furthermore, San Francisco is contemplating a prohibition on rent-calculating software, potentially setting a precedent for other urban centers.

While Harris's initiative encompasses the construction of homes for both rental and ownership purposes, there is uncertainty regarding whether this target includes the 2 million homes earmarked for construction and preservation by the Biden administration. The Biden administration has been actively advocating housing policies, and it is anticipated that Harris will elucidate further details on her housing strategy in the imminent weeks.

This milestone announcement represents Harris's premier policy-focused address since proclaiming her candidacy, bringing into focus a pivotal issue that has received limited attention in the current presidential election.

While experts appreciate the ambition of her housing agenda, questions remain about the feasibility of achieving these targets, especially given the ongoing challenges of restrictive zoning laws and local regulations that impede housing production. Harris's plan could set a new standard for federal involvement in housing, particularly in curbing predatory practices by corporate landlords.

Key Takeaways

• Harris pledges to build 3 million new homes by the end of her first term.
• Harris aims to reduce bureaucratic hurdles to accelerate housing production.
• Harris plans to combat the exploitation of rental rates by corporate landlords through software.
• San Francisco’s potential ban on rent-calculating software could influence local policies.
• The overlap between Harris's housing plan and Biden's 2 million home initiative raises questions about alignment.

Analysis

Harris's ambitious housing proposal, targeting 3 million new homes, has the potential to significantly impact the U.S. real estate markets, benefiting developers and homebuyers alike. The relaxation of zoning laws and efforts to combat rent-manipulation software could stimulate construction activity and lower rental expenses, affecting corporate landlords and tech firms such as RealPage. Short-term regulatory adjustments could prompt immediate construction, while the long-term stability of housing supply could enhance economic resilience. The potential convergence with Biden's initiatives might streamline federal endeavors, potentially expediting housing policy reforms across the nation.

Did You Know?

• Restrictive Zoning and Local Regulations:
  • Significance: Municipal rules and ordinances that dictate land usage and development, which can impede housing production efficiency, are referred to as restrictive zoning and local regulations. The regulations encompass requirements concerning housing types, density, setbacks, and other specifications that constrain the pace and effectiveness of housing supply escalation, making them stumbling blocks in Harris's plan.
• Corporate Landlords Using Software to Manipulate Rental Rates:
  • Significance: This refers to the practice where large property management companies employ specialized software to potentially coordinate and manipulate rental prices across multiple properties. Such actions can lead to illegal price-fixing, resulting in inflated rents for tenants without corresponding improvements in landlord services, garnering increased attention for being anti-competitive.
• Rent-Calculating Software:
  • Significance: Property managers and landlords utilize this technology to determine rental prices based on market conditions, property features, and tenant demand. While legitimately facilitating competitive prices, concerns arise regarding coordinated pricing among landlords driven by this software, potentially inflating rental rates. San Francisco’s proposed ban aims to ward off such practices and could set a precedent for other cities to consider similar regulations.