According to Brusuelas, President Joe Biden’s proposal to cap rent rises at 5% is probably going to be well-liked by the general population. But, he said, renters already benefit from disinflation.

According to Bureau of Labor Statistics statistics, the “rent of shelter” index increased 5.1% yearly in the July Consumer Price Index data, which was released on Wednesday. However, rents have been dropping so drastically lately that in an attempt to draw in new renters, landlords are including extras like free parking and free months of rent. Brusuelas stated that this implies the price cap will be useless.

The “ugly” aspect of Harris’ plan, according to Lanhee Chen, director of domestic policy studies at Stanford University’s Hoover Institute and a former CNN opinion contributor who worked on Republican campaigns, including Utah Senator Mitt Romney’s, is the rent ceilings.

President Biden’s proposal, which essentially amounts to a federal rent-control policy, was a horrible idea, according to Chen. Another gift to local governments in the name of a “innovation fund” that doesn’t seem to be held accountable for outcomes is also clear.

Chen also expressed caution regarding down payment assistance, which although appealing to purchasers may increase demand and hike housing costs.

Although Brusuelas acknowledged that the initiatives to support first-time homebuyers would resonate with Gen Z voters, it is still uncertain how they will ultimately impact the market.

However, Brusuelas noted that the far more important suggestion to add 3 million housing units is the “substance” of Harris’ plan. A persistent shortage of inventory acted as a bottleneck, driving up prices and decreasing affordability even before the epidemic, problems with the supply chain, and the increase in remote labor sent shockwaves through the country’s real estate sector.

According to Brusuelas, the Harris campaign’s plan, which was made public on Thursday, “is the only proposal that I’ve seen that directly addresses the concerns around the supply of housing.” The shortage of over 3 million homes will require a coordinated effort by the federal, state, and local governments to enhance supply.