Hopes for New Homes
One surprise in the campaign, with enormous implications for New York City, has been the decision by Kamala Harris to propose a major federal effort to increase the construction of new homes to deal with what has become a national housing crisis. It’s the first time in decades that any presidential candidate has pushed for a major federal commitment. Democrats are also starting to embrace action to counter local zoning restrictions that limit increased density and multifamily housing, a problem former President Barack Obama called out in a speech at this summer’s Democratic National Convention. The stance provides important support for the efforts by Governor Kathy Hochul, Mayor Eric Adams, and the so-called Yes In My Backyard movement to achieve increased housing growth in New York.
The Harris Plan
Harris’s plan includes a $25,000 tax credit for first-time homebuyers, an increase in the low-income housing tax credit relied on by builders of affordable apartments, and a new $40 billion fund that would "empower local governments to fund local solutions to build housing and support innovative methods of construction financing." Harris projects her plan would lead to the construction of 3 million homes in her first term, a 50% increase over the current rate of new construction.
Trump’s Views
Donald Trump drums on three major themes when he talks about making housing more affordable. He points to his promise to deport millions of immigrants, which he claims will lower purchase prices and rents by reducing competition — which most economists say is not likely. New York housing expert Jonathan Miller said recently it was clear that the policy would be inflationary by reducing the number of construction workers, a large share of whom are immigrants. Trump also says that by taking on the Federal Reserve Board, he would force interest rates lower, although the Fed is already committed to that approach. He has also said that housing could be built on federal land, although details are scarce, and it’s irrelevant for New York City and its suburbs, where virtually no federal land is available.
Climate and Infrastructure
It is not an exaggeration to say that almost $40 billion in money for local infrastructure, climate change measures, and mass transit set aside in the 2021 Infrastructure Investment and Jobs Act is at stake in the presidential election. Donald Trump and other Republicans are eyeing those funds for other uses and could repeal the infrastructure law, halting project approvals and freezing funding. Harris is almost certain to stick by commitments made under the Biden infrastructure law, one of her predecessor’s most important achievements.
Conclusion
In conclusion, the presidential election has significant implications for New York City, with major differences in the proposals of Donald Trump and Kamala Harris on housing and infrastructure. Trump’s views on immigration and interest rates are unlikely to address the housing crisis, while Harris’s plan for increased construction of new homes and support for local governments to build housing could lead to positive change.
FAQs
Q: What are some of the potential challenges in implementing Harris’s plan for new homes?
A: The plan will require action by Congress, which may be controlled by the opposite political party.
Q: What are the implications for New York City if Trump is elected?
A: Trump is likely to repeal the infrastructure law, halting project approvals and freezing funding, and may kill congestion pricing, which is important for the city’s transportation system.
Q: What is the status of the Gateway rail tunnel project?
A: The project is currently underway, but construction will not be completed until 2035, and the existing tunnel will need to be closed and rehabilitated until 2038.
