K
amala Harris's housing strategy includes plans to provide $25,000 in down payment assistance for first-time homebuyers, a $40 billion innovation fund to support housing supply solutions, and a pledge to build 3 million new homes over the next four years. However, real estate professionals in Chicago have expressed concerns about the effectiveness of these proposals in addressing the city's unique market challenges.

    April Baker, an agent at Berkshire Hathaway HomeServices Chicago, fears that the down payment assistance program could boost demand at a time when new home construction is already lagging. The number of homes for sale in Chicago in July was 4,955, an 8 percent decrease compared to the same time last year, according to Illinois Realtors. Jeff Benach, principal of Lexington Homes, shares Baker's concerns, noting that the $25,000 down payment assistance might not be sufficient or effective in markets where home prices vary significantly.

    On the other hand, some real estate professionals believe that Harris's plan could bring much-needed relief to the housing market. Daryl Fairweather, chief economist at Redfin, suggests that when combined with incentives for builders and other proposals, the down payment assistance could create a balanced approach.

    However, stable fiscal and monetary policies are preferable to Harris's down payment proposal, according to Christopher Coleman from Wingspan Development Group. Coleman advocates for measures like a Moderate-Income Housing Tax Credit, which gives state and local agencies the equivalent of approximately $10 billion in annual budget authority to issue tax credits for the acquisition, rehabilitation or new construction of rental housing targeted to lower-income households.

    Charlton Hamer from Habitat Company appreciates the focus on housing but stresses the need for broader policy discussions to enhance construction efficiency. Despite the challenges, Hamer supports Harris's focus on addressing the fundamental needs of food, shelter, and health, acknowledging the recognition of the ongoing housing crisis.

    As Harris's housing policies continue to be debated, the reactions from Chicago's real estate professionals highlight the complexity of finding solutions that can address both national and local market needs.