Kamala Harris' campaign focuses on inflation

Vice President Kamala Harris launched a new advertising campaign on Tuesday outlining her plans to build three million new homes within four years to curb inflation.

In a one-minute ad, Harris, the Democratic presidential candidate, talks about her personal journey, how she grew up in a rented apartment and how her mother saved for a decade before buying a home. The ad, aimed at voters in key swing states like Arizona and Nevada, is part of a broader effort by the Harris campaign to bring housing issues to the forefront. This week alone, campaign officials will host 20 events on housing.

In addition to encouraging housing construction, Harris' plan also includes financial assistance of up to $25,000 for first-time buyers – a proposal that could gain widespread acceptance as housing costs continue to weigh on the consumer price index.

According to the Bureau of Labor Statistics, housing costs rose 5.1 percent last year, compared with an overall inflation rate of 2.9 percent.

“Vice President Harris knows we need to do more to address the housing crisis, and that's why she has a plan to end the housing crisis” and will crack down on “corporate landlords and Wall Street banks that are driving up rents and housing costs,” Dan Kanninen, campaign director for swing states, told the Associated Press.

Newsweek reached out to Harris' and Trump's campaign team via email on Tuesday, requesting comment.

Inflation remains a major concern for Americans. It reflects a loss of purchasing power as the price of goods and services increases over time. A high inflation rate indicates that prices are rising rapidly, often having an immediate impact on personal finances.

Former President Donald Trump, the Republican presidential nominee, has blamed the price increases on President Joe Biden's energy policies. Meanwhile, Harris has announced plans to propose new measures to cut costs and bolster the economy.

The Harris housing plan would provide tax breaks for builders that serve first-time buyers and expand existing incentives for companies that build rental housing. Since local building codes often limit housing supply, Harris wants to double the funding to $40 billion to incentivize local governments to loosen these restrictive regulations.

Meanwhile, Trump has proposed various measures to reduce housing costs. In a speech in Wisconsin in June, for example, he claimed that curbing illegal immigration would reduce demand for housing and, in turn, lower prices.

“I will also stop inflation by preventing the invasion and rapidly reducing housing costs,” Trump said.

In addition, he brought up the idea in his election campaign team of releasing more federal land for housing construction and of holding a competition for the development of up to ten new cities.

However, the Trump team is also resisting the Democrats' initiatives to build more apartments and condominiums in suburbs and cities. These efforts are described as “Marxist” and a “war on the suburbs” that could lead to a drastic drop in real estate prices.

Karoline Leavitt, the Trump campaign's national press secretary, criticized Harris' economic policies, calling them “Kamalanomics” and accusing her of making home ownership more difficult. Trump further attacked Harris' proposal, questioning how she would finance the $25,000 grant for first-time home buyers, suggesting – without evidence – that the grant would also benefit undocumented immigrants.

“She has no idea how she could pay $25,000 to every first-time home buyer, including the illegal buyers,” Trump said at a rally on August 19 in York, Pennsylvania.

This article contains reporting from The Associated Press.