VP candidates clash over differing approaches to U.S. Housing Crisis

Sen. J.D. Vance is set to face off with Gov. Tim Walz in the vice presidential debate on Tuesday night, in what could be the final debate before the November election.

The two vice presidential candidates have markedly different policy outlooks and personal styles, and sparks are expected to fly during the 90-minute debate, which will be hosted by CBS starting at 9 p.m. ET.

Many political analysts expect both candidates to focus their attacks at the top of the opposing ticket, with the Democrat Walz targeting Donald Trump, and the Republican Vance making his case against Vice President Kamala Harris.

Although voters have signaled that housing affordability is a key issue this year, it remains to be seen whether the topic will be raised in Tuesday night’s debate. In the presidential debate last month, Harris touched on housing issues repeatedly, while Trump avoided the subject entirely.

On the campaign trail, Vance and Walz have staked out their respective positions on the housing crisis, for the most part differing widely on its causes and solutions.

In a speech at the Republican National Convention, Sen. J.D. Vance cast Wall Street investors and immigrants as major villains of the U.S. housing market.

“The absurd cost of housing is the result of so many failures... I can tell you exactly how it happened,” said Vance. “Wall Street barons crashed the economy and American builders went out of business. As tradesmen scrambled for jobs, houses stopped being built."

“The lack of good jobs, of course, led to stagnant wages. And then Democrats flooded this country with millions of illegal aliens. So citizens had to compete with people who shouldn’t even be here for precious housing,” he continued.

Echoing Trump’s position, Vance has repeated this point on the campaign trail, saying immigration is a major culprit for rising home prices.

“When I talk to Americans, one of the biggest concerns I hear is: ‘Why are housing costs so high?’ I’ll give you two reasons: First there are 20 million illegal aliens who shouldn’t be here and who are competing with Americans for scarce homes,” Vance told Fox News host Sean Hannity in August. “Second Kamala Harris has supported higher interest rates which makes mortgages unaffordable for most people.”

However, Realtor.com senior economist Ralph McLaughlin expressed skepticism that immigration restrictions would have a significant impact on home prices calling it a “band-aid solution.”

“There is pretty strong consensus among housing economists that primary structural problem in U.S. housing market stems from very long period underbuilding homes in this country due unnecessarily strict land use regulations,” says McLaughlin.

Because these restrictions he adds housing prices have surged as demand rises but rising prices haven’t spurred enough increased production balance market.

“So while band-aid solution would reduce aggregate demand homes getting root problem involves sorting out supply-side issues instead,” he says “Thus we welcome any serious political discussions national state local levels how we society might address root cause housing undersupply problem.”

On recent call investors Stuart Miller executive chairman co-CEO homebuilder Lennar also noted immigration has multiple conflicting effects on housing supply since immigrants major contributor residential construction workforce.

“On one hand influx immigrant population expanded labor pool therefore offset pressure construction cost increases” he said “On other hand increase population requires more supply dwellings house growing population.”

Gov Tim Walz unique possibly alone among recent candidates major presidential tickets does not own home

When took office 2019 Minnesota governor sold family’s home Mankato MN $304000 below $315000 asking price six-bedroom home bought 1997 only house ever purchased

Still Walz burnished homeowner credentials campaign trail talking fondly about home maintenance particular passion well-maintained gutters

“I try not judgmental people when see well-tended gutter says lot about somebody” told podcaster August

In interviews Walz touted Harris’ housing plan calls tax credits spur construction 3 million new homes federal down payment assistance $25000 first-time buyers

He noted bought Mankato home using VA loan did not require down payment says more families should opportunity get mortgage without large up-front payment

“What know that housing foundational everything It’s foundational family stability It’s foundational school achievement know that path generational wealth” Walz told Michigan public radio station WCMU last month “You start people out gives them foundation get That foundation allows build What end seeing see wealthier communities more money invested back into me see broader tax base means lower property taxes everybody”

However many economists warned widespread down payment assistance would fuel price increases homes unless supply expanded dramatically first

Ken Johnson professor finance Walker Chair Real Estate University Mississippi told Realtor.com August offering widespread down payment assistance like “throwing gasoline already on-fire housing market”

“The real symptom what’s going that short supply We’re dangerously short supply just cannot build homes fast enough” said Johnson “You can’t make easier people buy homes offer easier credit buy homes when have housing market overpriced”

As governor Walz enacted dramatic policy housing signing $1 billion bill representing largest investment Minnesota history bill included funding emergency rental assistance infrastructure investments down payment assistance first-generation homebuyers

Though neither candidate likely admit does appear one issue agree cracking down purchases large investors

“We don’t need large venture capitalists buying up large stocks homes then jacking prices up That not what need what we’ve seen many areas” Walz told WCMU

Likewise Vance said campaigning Senate 2021: "When these hedge funds take special government privileges go buy all single-family homes what doing destroying wealth country"

Investor buyers accounted 14.8% purchases first quarter 2024 highest share data history according Realtor.com economic research team

However vast majority those investors mom pop operations fewer than ten properties Small investors made up 62.6% investor purchases quarter highest small-investor share data going back 2001

Still investor homebuyers appealing target both sides election Harris raised issue calling Congress pass Stop Predatory Investing Act which strip valuable tax benefits companies own fifty or more homes

The bill has eleven co-sponsors Senate all them Democrats Vance has not supported bill hedged when questioned about last year Ohio news station

“I haven’t looked (this) piece legislation” Vance told WSYX-TV "Generally think they’re pointing right direction which need make harder institutional buyers"