V
ice President Kamala Harris unveiled her housing policy as part of her populist economic plan during her first major policy announcement since replacing President Joe Biden at the top of the Democratic ticket in the 2024 presidential race against Republican Donald Trump. Her signature housing policy includes up to $25,000 in federal down payment assistance for first-time homebuyers who have paid their rent on time for at least two years. This is an expansion on Biden’s prior proposal for a $10,000 tax credit for first-time buyers, which was limited to first-generation homebuyers. The program would provide down payment assistance to up to 4 million first-time buyers over four years.

    Harris' campaign says the program would require congressional approval. The nonprofit policy group Committee for a Responsible Federal Budget estimates that the new housing policies Harris proposes would cost $200 billion over four years, and more if they were made permanent.

    Experts react to Harris' down payment assistance plan, with some warning it could fuel runaway increases in home prices. Tai Christensen, president of private-sector down payment assistance provider Arrive Home, acknowledges that a federal subsidy for first-time buyers might stoke housing inflation if it were not balanced with an increase in supply. However, she argues that Harris' proposed tax credits for homebuilders could offset the inflation risk by stimulating new construction, and that down payment assistance would be an important step to level the playing field and boost opportunities for homeownership.

    The National Association of Home Builders praised Harris for making housing and homeownership a centerpiece of her economic agenda. They called for the construction of 3 million new housing units because the primary way to tackle the nation’s housing affordability crisis is to increase the nation’s housing supply.