Kamala Harris' $25,000 down payment assistance plan is a band-aid fix for the housing crisis, Zillow's chief economist says. 3 policies that will actually help home affordability.

According to Zillow Chief Economist Skylar Olsen, proposals like providing down payment assistance for first-time homebuyers do not adequately address housing supply issues, merely exacerbating demand without solving fundamental problems.

Olsen stated, 'The demand side doesn't help over the long run.' She emphasizes that effective policies should focus on increasing housing supply rather than just offering financial incentives for buyers.

Discussing the program's criteria, Olsen pointed out potential inequities: 'I could be a first-time buyer... and now you've given me an extra boost.' This highlights the need for more targeted strategies.

Olsen argues that federal down payment assistance is a temporary solution: 'It's simply a band-aid fix for structural issues in the US housing market,' advocating for substantive long-term changes.

Read at Business Insider