Trump vs. Harris: How They Would Solve the Housing Crisis | WSJ

Summary

This video explores the housing affordability crisis, emphasizing the fundamental issue of supply and demand. It details the complex process developers face in building affordable homes, from zoning hurdles and environmental regulations to costs associated with materials and labor. Both 2024 presidential candidates present differing strategies: Donald Trump advocates for reducing regulations and utilizing federal land, while Kamala Harris focuses on funding and incentivizing local governments. The video highlights the crucial roles of local and federal governments in addressing housing shortages and suggests collaborative solutions to make homes more affordable.

Takeaways

• 🏡 Housing prices are rising faster than incomes, leading to an affordability crisis.
• 🔍 The primary driver of housing costs is the imbalance of supply and demand.
• 🏗️ Developers face significant hurdles in building affordable homes, starting with zoning laws.
• 🚫 NIMBY (Not In My Backyard) sentiment often blocks new housing developments.
• 💰 Preparing land for development incurs costs and can involve lengthy approval processes.
• 📜 Local governments impose impact fees and requirements that add to construction costs.
• 🧱 Material costs, particularly for lumber, make up a large portion of home-building expenses.
• 👷 Labor costs and delays from insufficient city inspectors further complicate housing development.
• 🎙️ Candidates' housing plans differ: Trump focuses on deregulation and federal land use, while Harris emphasizes funding and support for first-time buyers.
• 📈 Experts suggest reducing tariffs on lumber and increasing land availability as key steps to making housing more affordable.

Q & A

What are the primary causes of the housing affordability crisis?

The primary causes include a significant imbalance between the supply of homes and the demand for them, leading to rising prices for both home ownership and rent.

What role do zoning laws play in the housing development process?

Zoning laws can restrict the types of buildings that can be constructed on a given plot of land, making it a major hurdle for developers who wish to repurpose land for new housing.

Who are the NIMBYs, and how do they impact housing development?

NIMBYs, or 'Not In My Backyard' individuals, are residents who oppose new developments in their neighborhoods due to concerns about increased traffic, pressure on local services, and changes to the community's character.

What are impact fees, and why are they charged to developers?

Impact fees are charges imposed by local governments on developers to fund the infrastructure needed to accommodate new housing, such as schools, roads, and parks.

What financial assistance programs are mentioned for affordable housing construction?

The Low Income Housing Tax Credit is mentioned, which provides financial assistance to developers who commit to renting or selling homes to qualifying low-income families.

How do interest rates affect the housing market?

Interest rates impact the cost of borrowing money to finance home purchases or construction; higher rates can deter buyers and slow down the housing market.

What are some challenges builders face in terms of labor?

Builders often face delays and increased costs due to a shortage of skilled labor, which is exacerbated by understaffing in trades and the need for various specialized contractors.

What is Donald Trump's approach to addressing the housing crisis?

Trump's approach includes opening federal land for development, reducing regulations, and protecting single-family zoning to appeal to local residents.

What strategies does Kamala Harris propose to improve housing affordability?

Harris proposes expanding tax credits and grants for first-time homebuyers, creating funds to incentivize local governments to support housing developments, and increasing apprenticeships in trades to reduce labor costs.

How significant is the role of local governments in solving the housing crisis?

Local governments play a crucial role by making zoning decisions, approving developments, and determining the infrastructure requirements that can facilitate or hinder housing construction.