Vice President Kamala Harris has announced a proposal that could provide up to $25,000 in down payment support for first-time homebuyers, a move that could significantly narrow the home ownership gap.
If Harris and Walz win the 2024 U.S. elections, they plan to assist working families who have consistently paid their rent on time for two years by offering up to $25,000 in down-payment assistance. Additionally, first-generation homeowners are expected to receive even more generous support during their first term in office.
“Many Americans work hard at their jobs, save, and pay their rent on time month after month. But they can’t save enough after paying their rent and other bills to afford a down payment—denying them a shot at owning a home and building wealth,” the Harris campaign stated in a preview statement obtained by ABC News.
The plan aims to simplify and expand the reach of down-payment assistance, potentially helping over 1 million first-time buyers annually, including first-generation homebuyers.
The Biden-Harris administration had previously proposed providing $25,000 in down-payment assistance for 400,000 first-generation homebuyers and a $10,000 tax credit for first-time buyers. The new plan builds on these efforts by aiming to address the housing supply shortage through the construction of 3 million new housing units and curbing bulk home purchases by Wall Street investors.
Harris is also expected to introduce a $40 billion innovation fund, doubling the $20 billion initially proposed by the Biden-Harris administration, to support local governments in developing innovative housing solutions. This fund could also enable the repurposing of certain federal lands for new housing developments.
In addition to these initiatives, Harris will propose two key pieces of legislation: the Preventing the Algorithmic Facilitation of Rental Housing Cartels Act and the Stop Predatory Investing Act. These acts are designed to curb rising rent costs by targeting corporate and major landlords who inflate prices.
The proposal comes at a time when the U.S. homeownership rate stands at 65.5%, with the rate among Black Americans significantly lower at 44%. The National Association of Realtors reports that this represents the largest Black-White homeownership rate gap in a decade.
The low homeownership rate among African Americans is primarily driven by economic disparities that make it difficult for many to afford a down payment. Historically, Black Americans have faced systemic barriers to building wealth, such as discriminatory lending practices, redlining, and lower access to high-paying jobs.
These factors have contributed to a significant racial wealth gap, with Black families having significantly less accumulated wealth than their White counterparts. As a result, fewer Black Americans have the financial resources necessary to save for a substantial down payment, which remains one of the biggest hurdles to homeownership.
This economic disadvantage, combined with rising home prices and stagnant wages, makes it even harder for Black Americans to enter the housing market, perpetuating the cycle of inequality in homeownership rates. Harris’ plan could be a significant step toward narrowing this gap.
How do you think this proposal could impact you if it becomes policy? Share your thoughts in the comments section.
