Despite widespread concern about housing affordability in the US, it barely featured in the recent presidential debate.
US presidential candidates Kamala Harris and Donald Trump clashed on many issues, yet housing was scarcely discussed in the debate. Harris, Trump vs. Australia’s housing plans?
In her opening remarks, Ms. Harris acknowledged the severe shortage of homes and high housing costs affecting many Americans today.
However, after that, neither candidate addressed housing issues further during the debate.
This contrasts with a June 2024 poll showing 74% of Americans view affordable housing as a major problem in the US.
According to the poll, 65% of respondents noticed home prices in their communities becoming less affordable over the past year.
Additionally, 44% reported increases in their monthly rent, reflecting broader housing affordability concerns across different sectors.
Dennis Shea from the Bipartisan Policy Centre noted that the polling reveals widespread bipartisan worry about high housing costs.
Consequently, Mr. Shea urged political leaders to align with public concerns and implement significant measures to help those struggling.
The latest figures reveal that home prices in the US have reached record highs, making homeownership increasingly difficult for Americans.
According to the S&P Corelogic Case-Shiller Index, a leading measure of home prices, there was a 5.4% increase year-on-year.
In June, this index hit a new all-time high, reflecting continued rising home prices across the country.
Brian D. Luke from S&P Global noted that the index indicates above-trend real price performance even when adjusted for inflation.
“Home prices and inflation remain significant factors in the political agenda as we approach the election season,” Mr. Luke stated.
Consequently, presidential candidates have proposed various plans to address the nation’s housing affordability issues ahead of the November election.
How Harris, Trump plan to fixing US housing
The Harris campaign’s main housing policy proposes up to $25,000 in down payment assistance for first-time buyers who have consistently paid rent.
Additionally, their plan includes a new tax credit to encourage builders to construct starter homes and restricts investor purchases of single-family homes.
Overall, the Harris campaign aims to build three million new housing units within a four-year period to address affordability.
On the other hand, the Trump campaign focuses on reducing inflation to lower mortgage rates, as stated on their campaign website.
Furthermore, the Republican plan suggests opening limited federal land for new home construction and offering tax incentives for first-time buyers.
Additionally, it includes cutting unnecessary regulations that contribute to higher housing costs, promoting increased homeownership.
The Trump campaign also told media that, if elected, they would “stop the unsustainable invasion of illegal aliens which is driving up housing costs”.
How Australia is addressing the housing crisis
In Australia, the federal government is addressing the housing crisis by focusing on increasing home construction and supply.
The government aims to support building 1.2 million new homes across the country over the next five years.
This initiative is part of the Housing Accord, with a target completion by mid-2029 to alleviate the housing shortage.
Additionally, about $3 billion has been allocated to encourage states and territories to build more homes effectively.
Moreover, over $1 billion is being invested in essential housing infrastructure, such as power and water connections.
To enhance social and affordable housing, the government has dedicated $10 billion to the Housing Australia Future Fund (HAFF).
Furthermore, $2 billion has been provided for the Social Housing Accelerator to increase the availability of affordable housing options.
To increase homeownership, the government has expanded the Home Guarantee Scheme, assisting buyers in avoiding lenders mortgage insurance.
Additionally, the Australian government is working to pass the Help to Buy shared equity scheme, aimed at boosting home deposits.
This scheme would provide buyers with a temporary equity stake in their home to support their purchase.
By offering these initiatives, the government hopes to make homeownership more accessible and affordable for Australians.
