In the realm of housing, a stark division between homeowners and aspiring homebuyers has fueled a growing conflict, according to influential economics writer Noah Smith. The gap between those who already own homes and those seeking affordable housing has widened significantly in recent years, resulting in tension between generations such as baby boomers and millennials. Smith argues that the situation can be likened to a zero-sum game, where homeowners desire rising property values for increased wealth, while new buyers aim for affordable prices.

As the United States approaches the upcoming election, the economy and, by extension, the housing market take center stage. Democratic presidential nominee Vice President Kamala Harris has recently unveiled her housing plan, which has garnered attention and positive reviews. Smith, in particular, draws parallels between Harris's approach and Singapore's housing policy.

Singapore, with its government holding approximately 90% of the land, exercises control over the housing supply and determines construction rates. The Housing Development Board gradually increases housing supply to ensure accessibility for all residents while aiming for modest but predictable financial returns on housing investments. Additionally, lower-income first-time homebuyers in Singapore receive grants from the government to facilitate their purchase. By 2023, nearly 90% of Singaporeans had achieved homeownership.

Harris's housing plan encompasses various key aspects, including up to $25,000 in down payment assistance for first-time homebuyers and a $10,000 tax credit specifically for this group. Furthermore, tax incentives would be provided to builders focusing on constructing starter homes and affordable rentals. The plan also allocates a substantial $40 billion fund to support the development of housing units. Harris proposes the repurposing of federal lands for housing, alongside a ban on price-setting tools employed by landlords and a removal of tax benefits for investors purchasing numerous single-family homes.

Smith highlights the elements of Harris's plan that focus on expanding housing supply, such as the tax incentives for builders, increased funding for construction, and the repurposing of federal lands. He draws attention to the similarity between these aspects and Singapore's approach, which he describes as "very Singaporean." Harris's plan is aligned with the YIMBY (yes-in-my-backyard) movement, which emphasizes the need to prioritize housing goals while employing a multifaceted approach that includes deregulation, tax incentives, and government-backed construction.

While Harris's provision of grants for first-time homebuyers has faced criticism as potentially driving up prices, Smith argues that similar measures are implemented in Singapore with little impact on prices. However, it is unlikely that the United States will fully mirror Singapore's situation, given the significant differences in government control over land. Nonetheless, the attention and recognition given to housing as a critical issue are encouraging, particularly in acknowledging fundamental challenges, such as the massive shortage of affordable homes.

Smith acknowledges that Harris's YIMBY plan will not solve all housing issues in America, citing fragmented state and local laws and deeply entrenched NIMBY (not-in-my-backyard) sentiments. Nevertheless, he sees Harris's efforts as a step toward making the United States more like Singapore in terms of affordable housing, which he views as a positive development. The objective is to address the housing shortage by employing a comprehensive approach, with federal support playing a role in conjunction with state and local actions.

In conclusion, Kamala Harris's housing plan, drawing inspiration from Singapore's approach, aims to tackle the mounting challenges of housing affordability for aspiring homebuyers. While the plan may not fully resolve America's complex housing issues, it represents a significant step forward in addressing the shortage and recognizing the need for diverse strategies and collaborations at various levels of government.