Kevin O’Leary, the outspoken investor and ‘Shark Tank’ star, has taken aim at Vice President Kamala Harris’s plan to provide up to $25,000 in down payment assistance to first-time homebuyers. O’Leary, a prominent figure in the real estate industry, considers the proposal a ‘bad idea’ and has demanded a live interview with Harris to discuss the plan’s details.
“I’m in the real estate business,” O’Leary said on Fox News’s ‘The Ingraham Angle.’ “That’s a really bad idea, an immensely bad idea, an incredibly bad idea. I’d like to interview her on that idea. I’ll do the interview. I want it live.”
Harris’s plan, an extension of a previous Biden administration proposal, aims to address the challenges faced by many Americans struggling to afford homeownership due to rising housing costs. The initiative would offer down payment assistance to all eligible first-time buyers, including families who have consistently paid rent for two years, with additional support for first-generation homebuyers. The proposal estimates that over four million first-time buyers could benefit from the initiative in the next four years.
However, O’Leary argues that the plan could lead to increased housing prices, saying, “If everybody in the street has $25,000 extra and there’s one home for sale, the seller’s going to get the $25,000 by raising the price $25,000.”
While O’Leary expresses concerns, supporters of the proposal believe it could boost homeownership and wealth creation, particularly in marginalized communities. Tai Christensen, President of Arrived Homes, acknowledged that a federal subsidy for first-time buyers could potentially fuel housing cost increases but emphasizes the importance of balancing it with increased housing supply. Harris’s plan includes proposed tax credits for homebuilders, which could encourage new construction and help keep housing prices in check.
“Anything that increases homeownership, specifically in marginalized, low- to moderate-income communities, we are in complete support of,” Christensen told Realtor.com. “Homeownership is the No. 1 vehicle for wealth creation for the majority of Americans and to have opportunities to expand that benefit to more Americans, we’re completely in support of whatever that looks like.”
The debate surrounding Harris’s proposal highlights the complex challenges faced in addressing the affordability crisis in the housing market. It remains to be seen whether the plan will successfully achieve its goal of expanding homeownership opportunities for first-time buyers without exacerbating the existing affordability issues.
