How could this impact her election bid?
Vice president Kamala Harris has unveiled a plan to tackle housing costs, an issue that is increasingly concerning for key Democratic voter groups, such as young people, racial minorities, and low-income earners. As part of her economic policy agenda, Harris has proposed a $25,000 tax credit for first-time homebuyers and a $40 billion fund aimed at building affordable housing. According to a Bloomberg report, these initiatives are part of a broader strategy to revive enthusiasm among Democratic voters ahead of the upcoming presidential election.
The rising costs of both renting and buying homes have been exacerbated by pandemic-related economic shifts, leading to increased financial strain on many Americans. These burdens disproportionately affect groups that traditionally lean Democratic, making housing affordability a top issue in the election. For younger voters, particularly Generation Z and Millennials, housing costs rank just below inflation in importance, according to a Bloomberg News/Morning Consult poll.
Harris outlined her plan during a speech in North Carolina, a key swing state, where she pledged to address the nation’s housing shortage by building three million new homes by the end of her first term. Her proposal also includes measures to curb the influence of corporate landlords, who have been blamed for driving up rent prices by purchasing homes in bulk.
Generational divide deepens as housing costs soar
Harris emphasized the importance of affordable housing in building wealth and securing a stable future, which includes owning a home - one that is closely tied to notions of the American dream. Homeownership has become a concern following skyrocketing housing costs and inflation.
The housing crisis has widened the gap between older homeowners, who benefit from low mortgage rates and increased home equity, and younger generations who struggle to enter the market. This generational divide is becoming more apparent as housing costs continue to rise, with the median home price reaching a record $426,900 in June, according to the National Association of Realtors.
The challenge of affording a home is felt acutely in swing states like Wisconsin. Milwaukee, the state’s largest city, is the most rent-burdened in the Midwest, with residents spending a significant portion of their income on housing. Megan Montgomery, a 39-year-old Milwaukee resident, expressed frustration over her inability to find affordable housing. “I have to rent because I can’t buy a house,” she told Bloomberg, noting that available homes are often in poor condition.
Bloomberg noted the ability to galvanize support among renters will be crucial in the upcoming election. However, the enthusiasm gap remains. While Harris leads former President Donald Trump among renters, her margin is narrower than that achieved by President Joe Biden in 2020. Harris’ ability to convince voters that she can address housing costs will be key to maintaining support from this demographic.
As the campaign progresses, Harris’ focus on housing affordability will likely remain a central theme, reflecting the broader economic challenges faced by many Americans.
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