Housing market problems challenge democrats amid election campaign

(MENAFN) For nearly four decades, real estate broker Mike McCann has navigated the ebbs and flows of Philadelphia's housing market, but the current downturn is unlike anything he has ever witnessed. "Sales have plummeted significantly compared to where we were two years ago," McCann remarked, noting the peculiar trend of falling prices amid a shortage of available homes. This conundrum, he explained, has left many potential buyers hesitating, unsure of when or whether to enter the market.

The stagnation in the housing market comes at a particularly inopportune time for Democrats, as they face an election marked by widespread concerns over the rising cost of living in the United States. Despite expectations that the Federal Reserve will begin lowering interest rates next month from their 23-year highs, its prolonged effort to curb inflation has inadvertently made homeownership increasingly unattainable for many Americans. Housing costs, which contributed to about 90 percent of the inflation rate in June, according to the most recent Consumer Price Index report, have become a critical issue.

Democratic strategist Antoine Seawright underscored the enduring significance of homeownership, stating, "Homeownership remains a crucial part of the American dream. Yet for many, this dream has turned into a nightmare." Seawright emphasized that addressing the challenges of accessibility and affordability in the housing market will be a central issue for Kamala Harris as she campaigns for the presidency. In response to these concerns, Harris has unveiled a series of proposals aimed at alleviating the cost-of-living crisis that has eroded support for Joe Biden's administration prior to his withdrawal from the race.

Among her key initiatives, Harris has proposed tax cuts of up to USD25,000 for first-time homebuyers as a way to make homeownership more attainable. Additionally, she has put forward tax incentives for homebuilders to construct properties that are within reach of entry-level buyers and has vowed to crack down on the unfair practices of institutional investors who acquire large quantities of homes, driving up prices and limiting availability. Harris, who has long been an advocate for housing justice, stated, "This issue is not new to me. I know how to fight for those being exploited in the housing market, and I understand the profound importance of homeownership." She further committed to working with the housing industry to address the shortfall in available homes, aiming to construct 3 million new homes over the next four years, whether for purchase or rent. 

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