Housing policy has become a central issue in the upcoming presidential election, with both Vice President Kamala Harris and former President Donald Trump offering proposals to address our nation’s housing supply and affordability challenges. While both have put forward policies that would support homebuyers and expand the supply of affordable homes, their plans diverge significantly in key areas like housing finance, renter protections, and immigration. Here’s a look at the housing proposals from each side.

Helping Homebuyers
Both Trump and Harris have proposed tax policies to support first-time homebuyers. Harris’ plan includes $25,000 in down payment assistance, with more generous subsidies for first-generation homeowners. This proposal goes beyond the $10,000 tax break proposed by the Biden administration.

The Trump campaign remains less specific, though the Republican platform emphasizes that the party would “promote homeownership through tax incentives that support first-time homebuyers.” This could involve tax deductions for mortgage interest and mortgage insurance or tax credits.

Housing Supply
Harris has emphasized the need to increase the supply of homes for both sale and rent, establishing a goal of building three million new affordable homes over the next four years. She has supported proposals to expand the federal Low-Income Housing Tax Credit and create a new tax credit to build or rehabilitate owner-occupied housing in lower-income communities—known as the Neighborhood Homes Tax Credit. Her plan also includes a new tax incentive for developers building starter homes for first-time homebuyers. Additionally, Harris has proposed a $40 billion fund to help local governments innovate in housing construction.

With the proposals for expanding LIHTC and creating a Neighborhood Homes Tax Credit enjoying bipartisan support in Congress, it is possible that a second Trump administration would pursue these policies as well. Trump has also pledged to reduce regulatory hurdles to building new homes, and both campaigns have put forth plans to make federally owned land available for housing development.

Zoning Regulations
Harris and Trump have both recognized the impact of zoning regulations on restricting the supply of housing. Harris has pledged to “take down barriers and cut red tape” to accelerate housing construction, including streamlining the permitting process for transit-oriented development and office-to-residential conversions.

Trump has indicated an interest in easing environmental and permitting rules, recognizing that regulatory compliance makes up a significant percentage of the cost of building new housing. In his previous administration, he signed an executive order to create the White House Council on Eliminating Barriers to Affordable Housing Development, whose report could guide his policy in a second term. Among a variety of suggestions, the report emphasizes the importance of streamlining the federal environmental review process for affordable housing and the need to improve the regulation of manufactured housing.

During his first term, Trump suspended and eventually repealed the Department of Housing and Urban Development’s (HUD) Affirmatively Furthering Fair Housing (AFFH) rule, vowing to prevent low-income housing development in suburban areas. He has reiterated this stance during the current campaign, promising to keep such developments away from suburban neighborhoods.

While HUD released an updated AFFH rule under the Biden administration, it has yet to be finalized. A second Trump administration would likely look to publish a revised rule with looser terms, in line with the 2020 rule on Preserving Community and Neighborhood Choice.

Knowledge is Power, but Information is Key

EPAB President’s Message

Jaime Gonzalez, President
El Paso Association of Builders

For me, nothing is scarier than the unknown. I like to know what’s happening, where I stand, and where I’m headed. Even if plans change, having a target and a plan toward it is essential.

In a previous note, I mentioned how we're constantly flooded with information, some useful, mostly just noise. And during election season, the noise amplifies: Vote for him! Vote for her! He did this, she said that. With the plethora of information bombarding us, filtering the noise to find meaningful information feels like a challenge. We often end up doing our own research, hoping we’ve found all the relevant facts and making a decision that can feel like a shot in the dark.

When I think about how I feel when deciding my vote, it reminds me of the stress our clients face when choosing a builder. They see all the pretty and polished images on the websites, but how do they decide who to trust with building their home?

There are many sales techniques, tie downs or closings you can use. But, in today’s world, buyers don’t want to be sold, they want transparency and trust. That’s why my approach centers on information. My presentations aren’t about selling, they’re about laying out a roadmap. From our first meeting to their dream home, I walk clients through the process: how we design the home, establish a budget, challenges we will face, I try to set realistic expectations. I’m upfront that there will be challenges, and sometimes, they may not like me. But in giving them all the details, they have what they need to make the best decision. Even if a client chooses another builder, most appreciate the honesty and clarity.

Whether we’re casting a vote or choosing a builder, being well-informed gives us the power to make confident decisions.

You want happy and satisfied customers, right? You agree that information helps your customers see the value you bring to the table, right? Lets get you on the path to success and make a commitment right now to share information and empower your customers.

Executive Message

All politics are local, hit home

By Ray Adauto
Executive Vice President, EPAB

The focus on national elections often overshadows local races, yet local elections can have a more immediate impact on our daily lives. Many voters pay little attention to the candidates or, even worse, the policies being proposed.

I frequently receive questions about home sales—both new and resale. There’s a common misconception that mortgage costs are solely based on the home’s purchase price, overlooking crucial components tied to that investment. Many buyers are surprised to find that taxes and insurance significantly affect their monthly payments, sometimes leading to shock when they realize they don’t qualify due to high costs. This is concerning, but why the surprise?

Let’s take a closer look at property taxes. El Paso has one of the highest property tax rates in the state, and there are several factors at play. The demand for essential services—like safety and education—alongside rising utility costs, contributes to this burden. For example, in the 79925 area (Airport Cielo Vista), the breakdown of property tax distribution is as follows, according to KFOX TV: El Paso Community College receives 5%, the County of El Paso gets 23%, the City of El Paso claims 29%, and the El Paso Independent School District takes a significant 43% of your tax dollars.

I highlight the school district tax to illustrate the overall property tax landscape in El Paso County, excluding the Hospital District and other obligations. It’s crucial to understand that your vote directly influences your paycheck and quality of life. Each time you vote, you’re contributing to the tax framework—often without fully grasping what you’re supporting.

It’s time to scrutinize the ballot in El Paso and consider the costs involved. Vote your conscience, but remember: your vote has real consequences.

Harris, Trump push plans for affordability

Millions of Americans can’t afford to buy a home or rent a suitable apartment, making housing a central issue for voters in the upcoming presidential election.
The biggest single reason homeownership is out of reach for many is there aren’t nearly enough homes for sale to balance out the market between buyers and sellers.

The shortfall, which some economists say ranges from 1 million to around 4 million homes, has for the better part of the last decade fueled bidding wars that boosted the median sales price of a previously occupied U.S. home to an all-time high of $426,900 in June — even as home sales have been in a deep slump for more than two years.

Higher mortgage rates have also kept many home shoppers on the sidelines. The average rate on a 30-year mortgage rose to a 23-year high of nearly 8% late last year, and now sits at 6.44%.

Renters haven’t had it any easier. While the median U.S. asking rent has been easing for more than a year following a wave of new apartment construction, it remains roughly 20% higher than it was before the pandemic.

Against this backdrop, Vice President Kamala Harris and former President Donald Trump have put out proposals that they contend will make the American Dream accessible to more Americans.

Harris’ campaign has laid out a detailed roadmap of policies aimed at expanding access to affordable housing both for homebuyers and renters that includes offering first-time homebuyers up to $25,000 in down payment assistance and tax incentives for builders and federal funds for cities to speed up construction. She claims her plan will add 3 million new housing units over the next four years.

Trump says he will create tax incentives for homebuyers, cut “unnecessary” regulations on home construction and make some federal land available for residential construction, though the campaign’s platform doesn’t include any details. Trump also claims that he will lower housing costs by reducing inflation and stopping illegal immigration.

Setting aside the fact that many of the candidates’ policies would require support from a majority of lawmakers in Congress, which the next president may not have, economists say the campaigns’ platforms offer some good ideas, but no sure fixes to the housing market’s longstanding challenges.