V
ice President Kamala Harris' housing proposal could significantly impact the market with its ambitious plan to build 3 million new homes, prioritizing affordable options like townhomes and condos. The $40 billion initiative aims to tackle the ongoing housing shortage, which sees U.S. builders still short 4.5 million homes despite high demand.

    Harris' plan also includes first-time homebuyer assistance of up to $25,000 in down-payment help and expanded low-income housing tax credits. Additionally, it would incentivize local governments to remove zoning restrictions, allowing for denser, affordable developments. This approach contrasts with former President Donald Trump's focus on reducing regulations and freeing up federal land.

    Experts are divided on whether the influx of federal funding and tax incentives will push down home prices or boost demand. Some believe it could give first-time buyers a leg up, while others argue it could create a scramble that drives prices higher if supply can't keep up. Harris' plan also targets rural areas, where growth has stalled, with a $7.2 billion investment in infrastructure.

    While increasing supply is seen as a positive step, some analysts believe high construction costs and zoning restrictions may slow down Harris' ambitious goals. However, if her plan takes off, it could significantly shift the U.S. housing market, giving low- and middle-income families better access to affordable options.