Vice President Harris Announces Economic Agenda

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Vice President Harris Announces Economic Agenda

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Editorial Director at BiggerPockets · Atlanta, GA · Member since 2023 · 28 posts · 42 votes

Vice President Harris is expected to announce her plans at a rally on Friday. According to Forbes, it will focus on creating more affordable housing. Some of the finer points that I can see are $25,000 in down payment assistance for first-time homebuyers, 3 million new housing units within the next four years, tax credits for developers who build starter homes, investing $40 million in an innovation fund to tackle the housing crisis, and expanding a tax credit for housing developers who build affordable housing rental units.

Forbes also says she wants Congress to crack down on "predatory investors" who buy up rental homes and collude with each other to raise rental prices.

Just sharing this because there's obvious impacts on the housing market if this all takes effect.

This is basically just a summary of the Forbes article, you can read it in full here: https://www.forbes.com/sites/alisondurkee/2024/08/16/kamala-...

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    Chris SeveneyBusiness Member
    Moderator
    Investor · VA · Member since 2015 · 21k+ posts · 19k+ votes
    2y

    @Brian Carberry

    I wish Vegas would carry betting lines for candidate agendas. This would have a 1,000,000 - 1 odds of actually passing.

    This is not a political post supporting one candidate or the other - just noting I see zero chances of this ever getting passed

    Ps it should read: taxpayers will fund $25,000 to first time homebuyers

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    • Matt MyrePro Member
      Investor · Raleigh, NC · Member since 2022 · 12 posts · 29 votes
      2y

      My early thoughts are that expanding downpayment assistance while mortgage rates decline and still failing to build enough supply will only drive housing prices higher. Meanwhile, investors are being blamed and actively targeted by the federal government.

      This is major news and is a step further than the recent rent increase cap plan presented by President Biden earlier this summer.

      BiggerPockets
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      OP
      Editorial Director at BiggerPockets · Atlanta, GA · Member since 2023 · 28 posts · 42 votes
      2y
      Quote from @Matt Myre:

      My early thoughts are that expanding downpayment assistance while mortgage rates decline and still failing to build enough supply will only drive housing prices higher. Meanwhile, investors are being blamed and actively targeted by the federal government.

      This is major news and is a step further than the recent rent increase cap plan presented by President Biden earlier this summer.

      I agree with you. It will take time for those millions of new housing units to come on the market. In the short term, this will just create more demand for entry-level properties and cause prices to increase thanks to the competition and multiple offers that will surely come (especially if rates continue to drop).

      I received an $8k first-time homebuyer credit when I purchased my first home in 2009. The difference there was I got that when I filed my taxes. I still had to come up with the down payment on my own. I worry that providing the money upfront (if I'm understanding the details correctly) will create potential problems down the road if people use the extra money to purchase homes they can't afford. You'd have to assume there will be some sort of eligibility criteria here, but who knows?

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    • Chris SeveneyBusiness Member
      Moderator
      Investor · VA · Member since 2015 · 21k+ posts · 19k+ votes
      2y

      @Brian Carberry

      I wish Vegas would carry betting lines for candidate agendas. This would have a 1,000,000 - 1 odds of actually passing.

      This is not a political post supporting one candidate or the other - just noting I see zero chances of this ever getting passed

      Ps it should read: taxpayers will fund $25,000 to first time homebuyers

      7e investments53 Reviews
      WebsiteView Page
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    • Barry Pittman
      Member since 2024 · 17 posts · 12 votes
      2y

      Being in the poorest state in the union (Mississippi), this has been a topic of discussion for our development team, creating/building affordable housing. Is there a need? Most definitely. However, I believe the right company, operating with a very focused ideology, could make this happen without creating government expenses. At least, that's our goal.

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    • Jeremy Greenamyre
      Member since 2020 · 13 posts · 23 votes
      2y

      If the goal is to incentivize housing construction, the federal, state, and local governments could also address the disincentives - environmental restrictions, "green" requirements, restrictive zoning, studies, etc. There is a lot of upfront risk only to be told 'no' or 'not here' or 'yes, but more affordable'.

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    • John Canwell
      Member since 2024 · 2 posts · 7 votes
      2y

      When John D Rockefeller bought up oil railcars and then bought out his competitors and raised prices, the government acted.  Letting private equity firms and public firms buy up millions of single family houses is not good for the country and the government should ban it. While I normally oppose government intervention, it takes too long to build housing so it’s a constrained good.  
      Building more starter homes - maybe 1,200 to 1,500 sf, should receive government support, or tax incentives or fast tracking approvals.   However, in the big picture, the demographics of our society are always in flux and I suspect that overbuilding in certain categories is underway now and that will be evident next year.  The next housing problem I see coming is a need for affordable and livable homes for seniors.  Smart housing, small and somewhat communal - some common areas, not too many steps, near public transport, etc. Too many people approaching retirement don’t have adequate funds or income for just renting or owning a condo.  
      Last point - Americans need to start being minimalists.  Live a little smaller.  Maybe 750 sf per person on average. I see people owning much larger housing space and paying more for heating, cooling, insurance!!, property taxes.   

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    • R.J. Petrillo
      Rental Property Investor · Member since 2019 · 25 posts · 46 votes
      2y
      Quote from @Chris Seveney:

      @Brian Carberry

      Ps it should read: taxpayers will fund $25,000 to first time homebuyers


      Anything the government gives you it has taken from somebody else. 
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    • Dustin FaethPro Member
      Real Estate Investor · Columbus, OH · Member since 2013 · 153 posts · 92 votes
      2y

      She's just trying to buy votes and none of this would come to fruition if she got elected. What has the current administration done over the past 4 years to improve things in this country? Absolutely nothing.....so why would it suddenly change if she got elected. It won't....it's all just BS to try to gain votes 

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    • Gynna A Hernandez
      Member since 2019 · 2 posts · 26 votes
      2y
      Quote from @Dustin Faeth:

      She's just trying to buy votes and none of this would come to fruition if she got elected. What has the current administration done over the past 4 years to improve things in this country? Absolutely nothing.....so why would it suddenly change if she got elected. It won't....it's all just BS to try to gain votes 


       It might happen if she gets elected. Is the new agenda. You'll own nothing and "will be happy " according to them. They want control and power, that means owning everything and taking away "freedom" form us. 

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    • Rod Navarro
      Member since 2023 · 10 posts · 34 votes
      2y

      So Kamala wants to win with Populism. She is more leftist than I thought. 

      Does anyone one known if this mentions rent cap anywhere? Maybe even a start home price cap? (crazy)

      If everybody (no elegibility criteria) gets $25k at the same time but 3 million new housing units gets build in years, the effect is higher prices in the short term, because there is little inventory to support the new homebuyer pool with enough buypower. 

      And once the houses are up, are prices going to come down as new units come online but homebuyers pool increases continuously while they all have $25k? Not to mention, we are all financing that with our own taxes. Would be interesting to see if this is accompanied with a tax rise somewhere.  

      People coming with their own downpayment is part of the risk management during underwriting for those 30 year loans... this will also likely increase the probability of defaults.

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    • Craig Lessler
      Investor · Scottsdale, AZ · Member since 2016 · 86 posts · 61 votes
      2y

      She is full of crap and will say anything to gain votes. At the same time the Biden-Harris administration wants to double the capital gains tax rate and they previously attempted to eliminate the 1031 tax deferred exchange for most investors. She is also in favor of enacting a national rent control which would be an absolute disaster and would greatly reduce the amount of available of rental housing long term. Everything they propose is a total disaster and she has no understanding of the economy. She has never operated a business, had to make a payroll or ran anything successfully. 

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    • Sarah Renken
      Member since 2022 · 3 posts · 2 votes
      2y
      Quote from @Barry Pittman:

      Being in the poorest state in the union (Mississippi), this has been a topic of discussion for our development team, creating/building affordable housing. Is there a need? Most definitely. However, I believe the right company, operating with a very focused ideology, could make this happen without creating government expenses. At least, that's our goal.


       Where are you developing in MS? I’m on the Gulf Coast and looking to get into development and/or affordable housing.

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    • Dan Denis
      Member since 2021 · 17 posts · 12 votes
      2y

      It is a good, idea.

      stop being élitiste some of you.

      you know very well the person need to qualify for a mortgage at the first place.

      it's mean more honest investor will benefit from helping people who is where the were one.

      I think as investor and rich people in the société. You need to start thinking that kaos and insecurity come, when you to many people with nothing to lose. 

      Safety come when the société is balance in his social-economic aspect.

      A lot of opinion in this subject sound GREEDY AND ÉLITISTE. 

      Please let's start thinking not everyone going to make it.

      we can't save everyone but we can better few life by supporting more initiatives like that, by helping the gouvernement make it better.

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    • Rod Navarro
      Member since 2023 · 10 posts · 34 votes
      2y

      @Dan Denis Can you pls specify what is the idea you find "elitiste" & "greedy" exactly and why?

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    • Na Young
      Member since 2021 · 2 posts · 3 votes
      2y
      Quote from @Matt Myre:

      My early thoughts are that expanding downpayment assistance while mortgage rates decline and still failing to build enough supply will only drive housing prices higher. Meanwhile, investors are being blamed and actively targeted by the federal government.

      This is major news and is a step further than the recent rent increase cap plan presented by President Biden earlier this summer.

      I think that you have mis-stated that "Investors are being targeted". Investors as a whole are not being targeted. The Federal government are looking into the Investors who may have crossed the line of breaking the law. I am a Investors and I don't know anyone Investor that is being targeted in my state. 
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    • Jim Rice
      Member since 2024 · 14 posts · 14 votes
      2y
      Quote from @Gynna A Hernandez:
      Quote from @Dustin Faeth:

      She's just trying to buy votes and none of this would come to fruition if she got elected. What has the current administration done over the past 4 years to improve things in this country? Absolutely nothing.....so why would it suddenly change if she got elected. It won't....it's all just BS to try to gain votes 


       It might happen if she gets elected. Is the new agenda. You'll own nothing and "will be happy " according to them. They want control and power, that means owning everything and taking away "freedom" form us. 

      Total control is what the overlords want. 
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    • Jim Rice
      Member since 2024 · 14 posts · 14 votes
      2y
      Quote from @Gynna A Hernandez:
      Quote from @Dustin Faeth:

      She's just trying to buy votes and none of this would come to fruition if she got elected. What has the current administration done over the past 4 years to improve things in this country? Absolutely nothing.....so why would it suddenly change if she got elected. It won't....it's all just BS to try to gain votes 


       It might happen if she gets elected. Is the new agenda. You'll own nothing and "will be happy " according to them. They want control and power, that means owning everything and taking away "freedom" form us. 

      Total control is what the overlords want. 
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    • Alan F.
      Flipper/Rehabber · CA · Member since 2023 · 1k+ posts · 1k+ votes
      2y

      AB 968, prop 19, and prop 33 do target investors.

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    • Robert Sayre
      Real Estate Investor · New Tripoli, PA · Member since 2014 · 2 posts · 9 votes
      2y

      I have heard from informed and veteran foreclosure agents and investors that up to 40% of these houses are being bought up by hedge funds.This takes them off the market for long periods of time, because as we all know renovating them is not quick or easy.  There have been houses in my area that have already been purchased this way and two years later, they are still empty. I'm unsure how to stop this, but governmental action in this case I think is justified.

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    • Susan Maneck
      Investor · Jackson, MS · Member since 2014 · 1k+ posts · 769 votes
      2y
      Quote from @Matt Myre:

      My early thoughts are that expanding downpayment assistance while mortgage rates decline and still failing to build enough supply will only drive housing prices higher.

      I have to agree. I like Kamala Harris but I'm not sure I agree with her economic plans. Either the economy is good as Dems have been saying or it is not. If it is good then why are we messing with it? Just raise the minimum wage and let the Fed do the rest. 

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    • Susan Maneck
      Investor · Jackson, MS · Member since 2014 · 1k+ posts · 769 votes
      2y

       I've never seen any Dem suggest government ownership, except for the handful who identify themselves as Democratic Socialists. 

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    • Dale LineBusiness Member
      Real Estate Agent and Investor · Palm Springs CA and New York, NY · Member since 2008 · 17 posts · 6 votes
      2y

      Overall, as real estate investors and marketers, I believe this is good stuff. For years, economists have been telling us there are 2 problems in the housing industry 1. not enough supply (especially for first time buyers) and 2. potential buyers are struggling to build down payments thus leaving them as renters long after they should be able to purchase homes.

      Will this cause prices to increase? Probably. Anytime there's more money that occurs. But the overall benefits to the economy for homeownership vs. renters, in my opinion, is worth the trade-off. 

      Not so sure about the rent collusion part of the argument. I'd say that says more about lack of supply than price fixing. But that said, I also wouldn't be surprised if it is occurring in some small/insular markets. 

      As a couple of other folks commenting suggested, I totally support the point that these efforts should be focused on smaller homes for first time (or senior) needs. There have been some great studies pointing out how new home building has doubled in size from the previous post-WWII US housing boom. My parents owned a 1200 sqft (cool) ranch with 3 beds/2baths when I was a tyke. Great house! We need to build more of those again. 

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    • Susan Maneck
      Investor · Jackson, MS · Member since 2014 · 1k+ posts · 769 votes
      2y
      Quote from @Barry Pittman:

      Being in the poorest state in the union (Mississippi), this has been a topic of discussion for our development team, creating/building affordable housing. Is there a need? Most definitely. However, I believe the right company, operating with a very focused ideology, could make this happen without creating government expenses. At least, that's our goal.

      I lived in the Jackson metro for twenty years and I can't speak for the rest of the state. What I saw was not a need for additional housing (Jackson's population is shrinking not growing) but a need to rehab existing housing. What I'd like to see is an expansion of a Section 8 program which is too rarely used where tenants are subsidized to buy houses rather than rent them. 
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    • David Krulac
      Mechanicsburg, PA · Member since 2013 · 3k+ posts · 2k+ votes
      2y

      If my memory serves, back in the post 2008 there was a first time home buyer Federal program for $8,000.  Obviously the buyer needed to be able to qualify for a mortgage, so there were minimum income/qualifications.  You needed to NOT have owned a house in the last THREE YEARS.  BUT there was no upward limit and so high income people were able to qualify.  I lost rental tenants, one of which was a doctor, and another was an accountant.  Both had previously owned homes, and were realtively high income, but had not owned a home in the last three years ad qualified for the program.  If you got of law school, medical school, dental school, or grad school, you could still qualify.  Personally, I'm glad for anybody and everybody to buy a house, but I did lose many of my best tenants to the program.  However, after the program ended home sales dropped, because fewer people could buy a home.  And while the program was in effect home prices did increase as people wanted to buy before the $8,000 expired.  Same effect as the "cash for clunkers" program of the same era. 

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    • Scott TitusPro Member
      Rental Property Investor · Lake Ozark, MO · Member since 2017 · 102 posts · 86 votes
      2y

      Whenever the government says they’re there to help, someone else is going to be stuck paying for it somehow. Without making this political, government over regulation is toxic.

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