Vice President Kamala Harris is looking to offer economic relief for Americans priced out of their dreams, but her ambitious housebuilding target could leave her open to attacks on her greatest political vulnerability—immigration. For the first time since the 1990s, housing has become a prominent campaign issue. Both Harris and former President Donald Trump have positioned the nation’s affordable housing crisis at the forefront of their campaigns, promising to address a shortage that has left many voters feeling the American dream is out of reach.
According to a recent Wall Street Journal/NORC poll, nearly nine out of ten Americans believe owning a home is essential or important to their vision for the future, yet only one in ten feel it is easy to achieve. In fact, only 4.09 million homes were sold in the U.S. last year, the lowest figure since 1995. Clearly, America is in need of more homes, but the question remains: Who will build them?
Industry insiders describe a “broken” system, citing a labor shortage as the biggest hurdle to housebuilding. With a visa cap of 66,000 for skilled workers and an aging domestic workforce, something must change if Harris hopes to fulfill her goal of increasing construction. Her plans include the construction of 3 million new housing units by 2029, but without addressing labor shortages, these ambitions may falter.
What You Will Learn
- Understanding the current housing crisis in America and its political implications.
- The role of immigration in addressing labor shortages in the construction industry.
- Key proposals by Kamala Harris aimed at increasing affordable housing.
- The potential political risks associated with immigration reforms.
Lack of Affordable Homes
The issue of housing is particularly critical for young voters, with both candidates striving to appeal to this demographic. A recent survey revealed that 39% of Gen Z voters support initiatives to make it easier for first-time homebuyers, making it the second-most popular economic proposal among those aged 18 to 29.
However, it’s not just first-time buyers who are concerned. Many Americans looking to upgrade from starter homes are unable to do so due to a lack of affordable options. Older homeowners are also stuck, as the smaller units they wish to move into are often unavailable.
Jenny Schuetz from Brookings has noted, “The whole chain has really broken. There aren’t enough homes altogether.” Harris aims to tackle economic anxieties by focusing on the supply side of this crisis.
Her ambitious plan includes the construction of 3 million new housing units by 2029. However, as the federal government does not directly build homes, she will need to work with the private sector to achieve this. Proposed ideas include tax incentives for builders of starter homes, a $40 billion federal fund for local governments to finance housing solutions, and an expansion of the Low-Income Housing Tax Credit.
Immigration to Ease Labor Shortages
One clear solution to the workforce gaps in construction is immigration. James Tobin, President and CEO of the National Association of Home Builders, stated, “About a quarter of the jobs in construction are from across our borders. We’re just not doing a good job training our domestic workforce or attracting the next generation into the trade.”
Jack Malde from the Bipartisan Policy Center highlighted that the industry’s labor shortages could hinder ambitious housing plans like those proposed by Harris. He mentioned that 94% of contractors have reported difficulties in filling positions.
Brian Turmail, vice president of public affairs at AGC, called Harris’s goal of constructing 3 million homes “both desirable and achievable,” but stressed the importance of addressing labor shortages in conjunction with housing investments.
Additionally, Congress could raise the visa cap for skilled, non-agricultural workers and expedite work authorizations for asylum seekers, who could fill essential roles in the construction sector. Clearing the backlog of 7.6 million people awaiting green cards could potentially generate $3.9 trillion in GDP over the next decade while increasing the pool of skilled workers required for housing construction.
Political Hurdles for Harris
While immigration reform might seem like a straightforward solution to labor shortages, it poses significant political risks for Harris. Current polling indicates a shift in American attitudes toward immigration, with a majority now favoring stricter controls for the first time in nearly two decades.
Recent Gallup polls reveal that 55% of voters support reducing the number of migrants entering the country, while only 41% advocate for an increase. This rising demand for tighter immigration policies spans across party lines, with notable increases among Republicans, independents, and Democrats.
Faced with political challenges, President Biden assigned Harris the role of leading efforts to manage the influx of migrants crossing the U.S.-Mexico border. This task has drawn significant criticism from Republicans, who have labeled her the “border czar” and blamed her for the surge in border crossings.
As Trump’s campaign invests heavily in criticizing her immigration record, Harris has shifted her stance to adopt more conservative policies. In a recent speech, she committed to supporting bipartisan border security measures that include funding for a border wall.
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