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<ul class="summary-list"><li>This post originally appeared in the Insider Today newsletter.</li></ul>Welcome back! A 72-year-old VC investor still runs four marathons a year. He spoke to BI about <a target="_blank" href="https://www.businessinsider.com/training-tips-for-older-runners-from-72-year-old-marathoner-2024-10">how he fits the training into his busy schedule</a> as he tries to run 100 marathons before he turns 100.In today's big story, a final look at the impact a Harris or Trump presidency <a target="_blank" rel="noopener" href="https://www.businessinsider.com/election-preview-consumer-outlook-how-trump-harris-housing-taxes-2024-11">will have on your finances</a>.What's on deck:<ul><li>Markets: A survey exclusively shared with BI shows how a slice of Wall Street <a target="_blank" href="https://www.businessinsider.com/wall-street-election-predictions-professional-investor-survey-2024-11">thinks the election will go</a>.</li><li>Tech: Nvidia is replacing Intel in the <a target="_blank" rel="noopener" href="https://www.businessinsider.com/intel-struggles-qualcomm-deal-chip-industry-turmoil-2024-9">Dow Jones Industrial Average</a>.</li><li>Business: We spoke to more than 750 people about <a target="_blank" href="https://www.businessinsider.com/cant-find-job-unemployment-applications-retirement-mba-age-competition-openings-2024-11">their struggles finding a job</a>.</li></ul>But first, let's go over it one more time.If this was forwarded to you, <a target="_blank" href="https://www.businessinsider.com/subscription/newsletter/insider-today">sign up here.</a><h3 id="7fa5f018-5b05-4a37-a8dc-d3f89138bcb3">The big story</h3><h2 id="5fd547b9-ec52-41fc-8e08-4f4b27dd8097">The White House and your wallet</h2><div type="image" title="Trump and Harris." height="1743" width="2323" msid="114952573" hostid="261" sizebytes="392138"></div>On the eve of election day, we're offering a final breakdown of how both candidates might affect your wallet.Business Insider ran a <a target="_blank" href="https://www.businessinsider.com/election-preview-consumer-outlook-how-trump-harris-housing-taxes-2024-11">five-part refresher series</a> last week examining how the policies proposed by Vice President Kamala Harris and former President Donald Trump impact US consumers.With little middle ground between the two candidates, there are a wide range of implications. Let's get into it:<a target="_blank" href="https://www.businessinsider.com/market-impact-presidential-election-scenarios-trump-harris-stocks-bonds-crypto-2024-10">Investing</a>: The corporate tax rate is the major difference between the two sides that'll likely have the biggest impact on markets. Trump's plan to reduce the rate, which stands at 21%, is viewed by most as beneficial for corporate earnings. Harris wants to raise the corporate tax rate, which would likely have the opposite effect.<a target="_blank" href="https://www.businessinsider.com/cost-expensive-goods-price-impact-presidential-election-scenarios-trump-harris-2024-10">Cost of things</a>: Both candidates are looking to keep leveraging tariffs, but Trump's policy is much more aggressive. His broad-based 10%-to-20% tariff on most imported goods will ultimately make those products more expensive, according to most economists. When it comes to grocery prices, Trump previously said he'd restrict food imports to boost local farmers. Harris wants a federal ban on price gouging, but that'd only be applicable during national emergencies.<a target="_blank" href="https://www.businessinsider.com/housing-affordability-supply-impact-presidential-election-scenarios-homebuyers-harris-trump-2024-10">Housing</a>: Harris wants to boost construction, with a goal of adding 3 million new housing units during her first term. The former president views his immigration plan — deporting millions of people from the country — as a way to address the housing shortage. Banning mortgages for immigrants living in the US illegally is another way to lower demand, according to Trump.<a target="_blank" href="https://www.businessinsider.com/tax-cut-tariff-plan-outlook-presidential-election-scenarios-harris-trump-2024-10">Taxes</a>: Trump is expected to expand on the tax cuts he established in 2017. The highest earners in the country, those in the top 0.1%, would see a tax reduction of nearly $280,000 whereas middle-income Americans would get a $1,000 break on their taxes, according to one analysis. Harris' proposals will favor lower-income earners, although she's promised to not raise taxes for anyone making below $400,000. She does support a minimum income tax for billionaires.<a target="_blank" href="https://www.businessinsider.com/childcare-costs-presidential-election-scenarios-parents-paid-leave-harris-trump-2024-10">Childcare</a>: Both candidates have discussed increasing the amount of the child tax credit, which currently provides up to $2,000 per child. Harris has also zeroed in on childcare costs, promising to cap those expenses at no more than 7% of families' income. Neither candidate has suggested funding childcare facilities or boosting hiring, which is a key issue for the industry.<h3 id="77f31a4c-8462-4e3d-a71f-838cb79493fb">News brief</h3><h2 id="1fcd294b-3f53-425f-9f20-4093e8623b59">Top headlines</h2><ul><li>Harris leads Trump by three points in a <a target="_blank" rel="noopener" href="https://www.businessinsider.com/harris-trump-iowa-polling-lead-swing-states-2024-11">new poll in GOP-leaning Iowa</a>.</li><li>TGI Friday's <a target="_blank" rel="noopener" href="https://www.businessinsider.com/tgi-fridays-files-for-bankruptcy-2024-11">filed for Chapter 11 bankruptcy</a>.</li><li>Scoop: Gwyneth Paltrow's lifestyle brand Goop <a target="_blank" href="https://www.businessinsider.com/gwyneth-paltrow-goop-lays-off-employees-pivot-beauty-food-fashion-2024-11">conducted another round of layoffs</a>.</li><li>In an all-hands, Intel CEO addresses employee concerns about <a target="_blank" rel="noopener" href="https://www.businessinsider.com/intel-chips-act-funding-all-hands-meeting-2024-11">the US election and CHIPS Act funding</a>.</li><li>WATCH: How Elon Musk is reshaping American politics. <a target="_blank" rel="noopener" href="https://www.businessinsider.com/elon-musk-reshaping-american-politics-ahead-of-2024-elections-2024-11">A conversation with Politico and BI</a>.</li><li>How a free meal cost an investor <a target="_blank" href="https://www.businessinsider.com/how-a-free-meal-cost-an-investor-his-retirement-savings-2024-10">his retirement savings</a>.</li><li>The China threat and the EV slowdown — <a target="_blank" href="https://www.businessinsider.com/auto-industry-faces-trouble-in-china-ev-slowdown-2024-11">2 takeaways from a busy few weeks in auto news</a>.</li><li>Record producer Quincy Jones has <a target="_blank" rel="noopener" href="https://www.businessinsider.com/quincy-jones-dead-obituary-2024-11">died at 91 in his home in Bel Air</a>.</li><li>The US dollar is jittery, and it's not <a target="_blank" rel="noopener" href="https://markets.businessinsider.com/news/stocks/us-dollar-presidential-election-fed-interest-rates-china-npc-stimulus-2024-11">only because of the presidential election</a>.</li><li>The Navy's top ballistic missile interceptor comes with a heavy price tag, <a target="_blank" href="https://www.businessinsider.com/us-navy-top-interceptor-missile-heavy-price-tag-low-procurement-2024-10">but the US can't afford to go to war without it</a>.</li></ul><h2 id="8120060b-ae66-48dc-b149-f0489a30ffa2">3 things in markets</h2><div type="image" title="Photo of Wall Street with American flags" height="1333" width="2000" msid="114952577" hostid="261" sizebytes="241826"></div><ol><li>These investors give the slight edge to Trump. A survey of some of SumZero's investor community, which includes small hedge funds and family offices, found 53% believe <a target="_blank" href="https://www.businessinsider.com/wall-street-election-predictions-professional-investor-survey-2024-11">Trump will win the election</a>. That follows other signals the finance world is sending that it views Trump as the favorite, including European stocks trading at a discount due to concerns over tariffs.</li><li>Interest rate cuts are back. The Fed will announce Thursday what it plans to do with rates, with <a target="_blank" href="https://www.businessinsider.com/interest-rate-cuts-federal-reserve-election-jerome-powell-inflation-jobs-2024-11">most traders expecting a 25-basis-point cut</a>. After that, there's one more chance for the Fed to cut rates in December, although JPMorgan's strategy chief said a Trump win <a target="_blank" href="https://www.businessinsider.com/trump-win-fed-pause-rate-cuts-easing-jpmorgan-david-kelly-2024-11">could give the central bank pause</a>.</li><li>Wall Street analysts are scratching their heads over Comcast's potential reorg. The company's president suggested it might spin out CNBC and MSNBC into a new firm while retaining NBC and adding a partner to its steamer. On paper the move makes sense, but analysts question how the cable networks could survive by themselves and <a target="_blank" href="https://www.businessinsider.com/comcast-cable-network-spinoff-peacock-partnership-deal-wall-street-analysis-2024-11">who would be willing to team up with Peacock</a>.</li></ol><h2 id="f4b54806-7f81-450c-ba32-92560d4fae9b">3 things in tech</h2><div type="image" title="Jensen Huang" height="3526" width="5289" msid="114952576" hostid="261" sizebytes="532426"></div><ol><li>A monumental swap. S&amp;P Dow Jones Indices announced Nvidia will replace Intel in the Dow Jones Industrial Average index, which looks to project the most relevant picture of the US economy. It shows <a target="_blank" rel="noopener" href="https://www.businessinsider.com/intel-struggles-qualcomm-deal-chip-industry-turmoil-2024-9">how far Intel has fallen from relevancy</a>, and raises questions about the future role it'll play in computing and AI. BI's Emma Cosgrove explains <a target="_blank" rel="noopener" href="https://www.businessinsider.com/why-nvidia-replacing-intel-dow-jones-industrial-average-explained-2024-11">why it's such a big deal</a>.</li><li>Everything we know about the Apple Intelligence rollout. Some of Apple's long-awaited AI features rolled out last week, including a new Siri interface and enhanced Messages. However, other features unveiled at WWDC in June won't be available until 2025. We've got <a target="_blank" href="https://www.businessinsider.com/apple-intelligence-features-rollout-timeline-iphone-16-2024-9">an estimated timeline of the rest of the releases</a>, based on what Apple experts and the company have said since WWDC.</li><li>Some Democratic political advertisers are still betting on X. Though Musk's ownership has shifted the platform's political stance, <a target="_blank" href="https://www.businessinsider.com/democratic-political-advertisers-using-elon-musk-x-twitter-2024-11">a small number of Democratic ad campaigns still see opportunity</a>. Montana Sen. Jon Tester and Texas Rep. Colin Allred are among the Democrats still hanging on tight to X.</li></ol><h2 id="9260fa45-d397-4b3c-b4f8-4bb193976216">3 things in business</h2><div type="image" title="Fish with price tags." height="3000" width="4000" msid="114952579" hostid="261" sizebytes="975922"></div><ol><li>Endless options are ruining e-commerce. The allure of online shopping was the ability to compare a variety of options from the comfort of your home. But what happens when there are literally tens of thousands of products to choose from? Information overload, choice paralysis, and <a target="_blank" href="https://www.businessinsider.com/online-shopping-ecommerce-comparison-burnout-too-many-choices-overwhelming-decision-2024-11">extremely frustrated shoppers</a>.</li><li>The great American shoplifting spree. Regular Americans are shoplifting everything from tape measures to blocks of cheese, and they don't feel particularly bad about it. Some of these opportunists view it as a way of fighting back against <a target="_blank" href="https://www.businessinsider.com/middle-class-shoplifting-retail-theft-crime-stealing-stores-2024-11">goods that are unjustly expensive</a>.</li><li>The biggest woes of finding work. BI spoke to over 750 people who have struggled to find a job, from older workers just shy of retirement to eager recent graduates. They shared what they're most frustrated with, including fake job postings, competition from AI, and the feeling of <a target="_blank" href="https://www.businessinsider.com/cant-find-job-unemployment-applications-retirement-mba-age-competition-openings-2024-11">being shut out from some careers</a>.</li></ol><h2 id="9f5d80ac-3466-429f-a50a-2ffbb70c65ff">What's happening today</h2><ul><li>Fox Corp, Goodyear, Marriott, and other companies report earnings.</li><li>Boeing's unionized workers vote on a new pay offer.</li></ul>The Insider Today team: Dan DeFrancesco, deputy editor and anchor, in New York. Jordan Parker Erb, editor, in New York. Hallam Bullock, senior editor, in London. Ella Hopkins, associate editor, in London. Amanda Yen, fellow, in New York. Milan Sehmbi, fellow, in London.

Here's a final breakdown of how both presidential candidates might affect your finances 

<ul><li><keyword id="19906087" type="General" weightage="20" keywordseo="hyundai" source="keywords">Hyundai</keyword> Motor India Limited is set to debut in India's stock market.</li><li>The IPO will open on October 15, making it the first car company in over two decades to go public in India.</li><li>Here’s everything you need to know about the South Korean automaker ahead of its IPO.</li></ul> Hyundai Motor India Limited, the Indian arm of South Korean automaker Hyundai Motor Company is all set to make its stock market debut in India as its initial public offering (IPO) opens on October 15. This will be the first market outside South Kores where the country is listed. Hyundai, which entered the Indian market in 1996 is one of the top automakers in India, moving between the second and third spots. The company emerged as the second biggest automaker in Hyundai. Since it entered the Indian market, the company has sold over 80 lakh cars in the country. Hyundai intends to establish India as a global manufacturing and export hub for the company and this might be an initial step in this direction. KFin Technologies is the registrar for the public issue and advisors for the issue include Kotak Investment Banking, Citi, HSBC, JP Morgan and Morgan Stanley. <h2>India’s biggest IPO</h2>Hyundai India is looking to raise ₹27,870 crore from the IPO, significantly higher than the ₹21,008 crore raised by the state-owned Life Insurance Corporation of India (LIC) in 2022, making it the biggest IPO in India’s history. <div type="Article" hostid="261" msid="111690863" title="The biggest IPOs in India’s history – LIC to Paytm, companies that have raised the most funds" mstype="2" mssubtype="0"></div> <h2>About the IPO</h2>The upcoming IPO from Hyundai is entirely an offer for sale (OFS), with the company looking to offload up to 17.5% of shares, which is 14.22 crore shares with a price band of ₹1865 to ₹1,960 per share. Bids can be made in a lot size of 7 shares or multiples of 7 shares. The IPO opens on October 15 and will close on October 18. While the allotment will be finalised on October 18, the shares will be listed on the stock exchange on October 22. At the upper end of the price band, Hyundai Motor India will be valued at $18 billion (approx. ₹1.6 lakh crore), which is around 40% of its parent company, Hyundai Global’s $45 billion valuation. As it is entirely an OFS, the company won’t receive any funds and all the funds raised will go to Hyundai Global. However, the company has said that part of the funds will be allocated towards research and development, especially in electric vehicles (EVs) and hybrid technologies. The company has reserved 7.78 lakh shares with a value of ₹131 to ₹138 crore for employees. Employees will get these shares at a discount of ₹186 per share. <h2>First carmaker in over two decades to go public</h2>In addition to being the biggest IPO in the country’s history, this will also make the company the first car maker to go public in India in over two decades. The last car maker to go public was Maruti Suzuki, which held its IPO in 2003. <div type="Article" hostid="261" msid="114120828" title="The Ola Electric Saga: Are surge in complaints and declining market share a wake-up call for Bhavish Aggarwal?" mstype="2" mssubtype="0"></div> With the IPO, the company will join other car makers such as Maruti Suzuki, Tata Motors and Mahindra &amp; Mahindra to be listed in the Indian stock market. <h2>Hyundai in India</h2>The Indian market contributes to around 15% of the company’s global sales and is the third biggest market for the company after the United States and South Korea. The company has already invested around $5 billion in the country and plans to invest an additional $4 billion over the next few years. Company’s financials <table style="border-width: initial; border-style: none;"></colgroup><tbody><tr><td style="border-left:solid #000000 0.5008695000000001pt;border-bottom:solid #000000 0.5008695000000001pt;border-top:solid #000000 0.5008695000000001pt;vertical-align:bottom;background-color:#000000;padding:0pt 5pt 0pt 5pt;overflow:hidden;overflow-wrap:break-word;">Period ended </td><td style="border-bottom:solid #000000 0.5008695000000001pt;border-top:solid #000000 0.5008695000000001pt;vertical-align:bottom;background-color:#000000;padding:0pt 5pt 0pt 5pt;overflow:hidden;overflow-wrap:break-word;">Revenue </td><td style="border-right:solid #000000 0.5008695000000001pt;border-bottom:solid #000000 0.5008695000000001pt;border-top:solid #000000 0.5008695000000001pt;vertical-align:bottom;background-color:#000000;padding:0pt 5pt 0pt 5pt;overflow:hidden;overflow-wrap:break-word;">PAT </td></tr><tr><td style="border-left:solid #000000 0.5008695000000001pt;border-bottom:solid #000000 0.5008695000000001pt;border-top:solid #000000 0.5008695000000001pt;vertical-align:bottom;background-color:#d9d9d9;padding:0pt 5pt 0pt 5pt;overflow:hidden;overflow-wrap:break-word;">Mar-22 </td><td style="border-bottom:solid #000000 0.5008695000000001pt;border-top:solid #000000 0.5008695000000001pt;vertical-align:bottom;background-color:#d9d9d9;padding:0pt 5pt 0pt 5pt;overflow:hidden;overflow-wrap:break-word;">₹47,966.05 </td><td style="border-right:solid #000000 0.5008695000000001pt;border-bottom:solid #000000 0.5008695000000001pt;border-top:solid #000000 0.5008695000000001pt;vertical-align:bottom;background-color:#d9d9d9;padding:0pt 5pt 0pt 5pt;overflow:hidden;overflow-wrap:break-word;">₹2,901.59 </td></tr><tr><td style="border-left:solid #000000 0.5008695000000001pt;border-bottom:solid #000000 0.5008695000000001pt;border-top:solid #000000 0.5008695000000001pt;vertical-align:bottom;padding:0pt 5pt 0pt 5pt;overflow:hidden;overflow-wrap:break-word;">Mar-23 </td><td style="border-bottom:solid #000000 0.5008695000000001pt;border-top:solid #000000 0.5008695000000001pt;vertical-align:bottom;padding:0pt 5pt 0pt 5pt;overflow:hidden;overflow-wrap:break-word;">₹61,436.64 </td><td style="border-right:solid #000000 0.5008695000000001pt;border-bottom:solid #000000 0.5008695000000001pt;border-top:solid #000000 0.5008695000000001pt;vertical-align:bottom;padding:0pt 5pt 0pt 5pt;overflow:hidden;overflow-wrap:break-word;">₹4,709.25 </td></tr><tr><td style="border-left:solid #000000 0.5008695000000001pt;border-bottom:solid #000000 0.5008695000000001pt;border-top:solid #000000 0.5008695000000001pt;vertical-align:bottom;background-color:#d9d9d9;padding:0pt 5pt 0pt 5pt;overflow:hidden;overflow-wrap:break-word;">Mar-24 </td><td style="border-bottom:solid #000000 0.5008695000000001pt;border-top:solid #000000 0.5008695000000001pt;vertical-align:bottom;background-color:#d9d9d9;padding:0pt 5pt 0pt 5pt;overflow:hidden;overflow-wrap:break-word;">₹71,302.33 </td><td style="border-right:solid #000000 0.5008695000000001pt;border-bottom:solid #000000 0.5008695000000001pt;border-top:solid #000000 0.5008695000000001pt;vertical-align:bottom;background-color:#d9d9d9;padding:0pt 5pt 0pt 5pt;overflow:hidden;overflow-wrap:break-word;">₹6,060.04 </td></tr><tr><td style="border-left:solid #000000 0.5008695000000001pt;border-bottom:solid #000000 0.5008695000000001pt;border-top:solid #000000 0.5008695000000001pt;vertical-align:bottom;background-color:#d9d9d9;padding:0pt 5pt 0pt 5pt;overflow:hidden;overflow-wrap:break-word;">June-24 </td><td style="border-bottom:solid #000000 0.5008695000000001pt;border-top:solid #000000 0.5008695000000001pt;vertical-align:bottom;background-color:#d9d9d9;padding:0pt 5pt 0pt 5pt;overflow:hidden;overflow-wrap:break-word;">₹17,567.98 </td><td style="border-right:solid #000000 0.5008695000000001pt;border-bottom:solid #000000 0.5008695000000001pt;border-top:solid #000000 0.5008695000000001pt;vertical-align:bottom;background-color:#d9d9d9;padding:0pt 5pt 0pt 5pt;overflow:hidden;overflow-wrap:break-word;">₹1,489.65 </td></tr></tbody></table> Amount in ₹ crore Hyundai recorded a revenue of ₹71,302.33 crore in FY24, up from ₹61,436.64 crore in FY23 and ₹47,966.05 crore in FY22. During the 3-month period from April to June 2024, the company earned a revenue of ₹17,567.98 crore. The company recorded a profit after tax (PAT) of ₹6,060.04 crore in FY24, up from ₹4,709.25 crore in FY23 and ₹2,901.59 crore in FY22. The company recorded a PAT of ₹1,489.65 crore from April to June 2024. “Hyundai Motor India is seeking a slightly higher premium to Maruti and lower to M&amp;M based on price earnings ratio while Hyundai stands to be expensive in terms of price to book value. Hyundai India justifies its premium ask considering its leadership in SUV sales, world-class brand image followed by better safety ratings, Multi-segment growth visibility largely been driven by its popular SUVs, particularly the Creta, Exter, and Venue models in the Indian market,” said Prashanth Tapse, Senior VP (Research), Mehta Equities. <h2>Hyundai paid ₹10,780 crore dividend in FY24</h2>Ahead of the IPO, Hyundai paid a ₹10,780 crore dividend in FY24, up from ₹4,653.42 crore dividend in FY23 and ₹1,493.45 crore dividend in FY22. With this, the company’s cash and bank balance has declined from ₹17,741.15 crore a year ago to ₹9,017.35 crore. <div type="Article" hostid="261" msid="113925972" title="September Auto sales – Automakers report a decline, Mahindra and Mahindra overtakes Tata Motors" mstype="2" mssubtype="0"></div> “As a result, our ability to utilise our internal accruals and cash and bank balances has been reduced. Any resultant insufficiency in our internal accruals and cash and bank balance may require us to borrow money to meet our growth requirements and incur borrowing costs, which may adversely impact our profitability, financial ratios and results of operations,” the company said in its Red Herring Prospectus (RHP). <h2>Declining grey market premium</h2>Grey market premium (GMP) is the premium at which IPO shares are traded in an unofficial market before they are listed on the stock exchanges. In essence, it is the premium above the issue price of a share. The GMP of Hyundai has been on a decline, from ₹570 around two weeks ago to ₹130. <h2>Key risks to remember</h2>Here are some of the key risks that the business faces: <h3>Rising part prices</h3>There has been an increase in prices of key vehicle parts over the years, especially chipsets. A further rise in price may impact the company’s profitability in the coming years. <h3>Production disruptions</h3>The company has said that any disruption to its Chennai plant will adversely impact the production and the company’s finances. <h3>Supplier dependency</h3>Another risk to keep in mind is the company’s dependency on its suppliers. Any disruption in its supply chain will adversely impact its production and profitability. <h3>Competition</h3>Hyundai alternates between the second and third position in the Indian car market. An increase in competition, with the increased sales of Mahindra and Mahindra, the company faces a new competitor. SEE ALSO: <a href="https://www.businessinsider.in/business/auto/news/the-ola-electric-saga-are-surge-in-complaints-and-declining-market-share-a-wake-up-call-for-bhavish-aggarwal/articleshow/114120828.cms">The Ola Electric Saga: Are surge in complaints and declining market share a wake-up call for Bhavish Aggarwal?</a> <a href="https://www.businessinsider.in/business/auto/webstories/top-selling-cars-in-india-in-september-2024-maruti-suzuki-dominates-with-seven-cars/slidelist/114112295.cms">Top selling cars in India in September 2024 – Maruti Suzuki dominates with seven cars</a> <a href="https://www.businessinsider.in/tech/mobile/news/samsung-leads-the-first-phase-of-festive-sales-with-a-20-market-share/articleshow/114070723.cms">Samsung leads the first phase of festive sales with a 20% market share</a>

Hyundai IPO review – Everything you need to know about India’s biggest IPO

<ul class="summary-list"><li>The Fed's interest rate cut will ease financing conditions for homebuilders, analysts told BI.</li><li>But other issues will keep supply constrained, from material costs to labor shortages.</li></ul>The Federal Reserve's rate cut will surely impact the housing market, but its effect likely won't affect arguably the most important part of the equation: keeping affordability tight. To be sure, elevated borrowing costs are partially to blame for the affordability crisis plaguing US home buyers, and lowering them will offer relief.Rates soared to multi-decade highs a year ago, and further reductions in the Fed's benchmark rate should help bring borrowing costs down over time. However, it'll also add to the supply-demand imbalance, as more buyers are lured off the sidelines by cheaper mortgages. Pressures will rise for <a target="_blank" class="" href="https://www.businessinsider.com/us-housing-affordability-home-shortage-market-construction-population-cities-zillow-2024-6">new housing construction to meet demand</a>, but financing is still tight for home builders, stifling momentum to bring more housing online.According to the National Association of Home Builders, manufacturing loans climbed from near 5% lows to 13% since March 2022."The more immediate effect for housing from the rate cut is going to be seen in the builder and the land developer loan conditions," Danushka Nanayakkara-Skillington, NAHB's associate vice president of forecasting, told Business Insider.But how this translates into a much-needed supply boost is a different story, and there are factors the Fed cut won't fix.Lingering uncertaintiesFor instance, Nanayakkara-Skillington noted that material pricing, from drywall to steel mill products, has weighed heavily on homebuilders since the pandemic.While <a target="_blank" href="https://markets.businessinsider.com/news/commodities/lumber-prices-plunge-home-building-season-demand-falls-flat-2024-6">lumber costs</a> have normalized, she expects a <a target="_blank" href="https://www.nahb.org/blog/2024/08/canadian-lumber-tariffs">recent tariff hike</a> on Canadian wood to increase prices in the coming months.Tariffs on Chinese transformers — which NAHB considers a "<a target="_blank" href="https://www.nahb.org/advocacy/top-priorities/material-costs/transformers">sorely</a>" needed component delaying housing projects — have caused prices to jump 73% in the last four years, she said.There are also shortages to consider. Nanayakkara-Skillington cited that 57% of surveyed homebuilders say there are not enough lots to build on, adding pricing pressure to the available supply.Urban Institute senior fellow Michael Neal told BI that local regulation is needed to remedy this issue. Zoning challenges should be addressed to unleash lot availability, he said, while inspection costs and timelines should be reduced.But the biggest issue is a lack of skilled workers, Nanayakkara-Skillington said. "Because we lost about a million construction workers during the Great Recession, we still lack that. So we need people desperately to come into the trades," she said, citing that there are about 250,000 open jobs right now.Nonetheless, the Fed cuts should improve homebuilder sentiment in the coming months after a period of declines amid high borrowing costs, both analysts said. Dim views on existing homesWhile it's difficult to forecast when the housing market will come back into balance, much depends on whether lower rates entice homeowners to start selling.According to Fitch Ratings, that's unlikely for now.Since most owners hold a mortgage rate well below the current 6% level, mortgage rates will need to fall significantly lower to boost supply, which will only happen if the Fed keeps cutting. The rating agency noted that about 24% of outstanding mortgages are priced above 5%, meaning that homeowners will stay put until rates hit that level. This won't happen until 2027, Fitch said."While new home inventory has grown by 29% since the start of the pandemic, improving the supply of existing homes, which are approximately 80% housing sales, is necessary to improve prices and housing market activity," the agency said.At the same time, easing Fed policy might not stir housing activity for another reason, Neal said."Part of the Fed's decision, I think, reflected concerns about whether or not people will have jobs," he noted. "At the same time, if you think rates are going to fall today, do you think rates are going to fall tomorrow?"This thinking might cause people to delay further, he said.Wherever supply comes to stand, a knock-on effect of lower rates and higher builder sentiment may be felt in the stock market. In the past three of five rate cutting cycles, the bank noted that homebuilder shares outperformed the S&amp;P 500 in the three-months following the first cut.

Rate cuts might make it cheaper to buy a house, but they won't fix the US housing market's biggest problem 

<ul class="summary-list"><li>Shannon St. Val pivoted from her job in finance to pursue a career in real estate.</li><li>She is now the founder and owner of a short-term vacation-rental company.</li></ul>Shannon St. Val is the founder and owner of <a target="_blank" href="https://ep-mg.com/">Elevate Vacation Rentals</a>, a short-term vacation-rental company based in New York. She left her job in finance to manage short-term rental properties and shares how she started, how she makes money, and the challenges of the industry.This as-told-to essay is based on a conversation with Shannon St. Val. It has been edited for length and clarity.My career in property management hasn't been a straight path. My degrees are in finance and real estate, and I graduated in 2008 when the <a target="_blank" class="" href="https://www.businessinsider.com/office-commercial-real-estate-cre-crash-2008-gfc-delinquency-vacancy-2024-3">subprime meltdown</a> happened. I thought I would be working in commercial real estate, but then all the real-estate jobs disappeared and I started working in finance.I worked at Klynveld Peat Marwick Goerdeler, or KPMG, on the consulting side, specializing in financial operations for big banks and broker-dealers, specifically for investment-management firms.I knew I didn't want to work in finance for too long because the culture was intense. In 2016, I left my job to be my own boss. I took many of my finance and consulting skills and founded my own short-term property management company.At first, I started managing a few properties for myself, and then when COVID happened, I had to pivot and expand. I decided to take on clients outside New York instead of just managing my own. It's been my dream to return to real estate with property management.<h2 id="f5bbe9fe-75d5-46bf-9651-eee295b6fd7e">How I find clients</h2>A lot of my early clients came through word of mouth. I had friends, particularly people I met in the finance industry, who had houses in <a target="_blank" class="" href="https://www.businessinsider.com/marthas-vineyard-ferry-review-new-england-2024-7">Martha's Vineyard</a> or <a target="_blank" class="" href="https://www.businessinsider.com/hamptons-hot-spots-visitors-buyers-from-real-estate-agent-2024-6">the Hamptons</a> and would ask, "Hey, you're managing properties. I have a house. Can you manage mine?" Some people will advertise on social media, but I've gotten my business through <a target="_blank" class="" href="https://www.businessinsider.com/small-business-founders-explain-grow-your-company-referrals-2023-10">referrals</a>. If you do good business, people will refer you to their network.Some property managers who are just starting have found success in <a target="_blank" class="" href="https://www.businessinsider.com/cold-email-formula-that-landed-me-response-from-meta-executive-2024-5">cold pitching</a>. This means reaching out to short-term rental owners and saying, "I know you may have a manager, but I'm willing to work for a lower rate for the first year." Then, if you meet their expectations, you can increase the rate.Some companies can do outbound emails or outbound marketing for you, where you blast local owners or anyone who recently bought a new house in that particular vacation-rental area, advertising your services.<h2 id="25cfe19f-2fc1-49c4-8eee-5946221a2bc7">How I earn a living from property management</h2>There are two ways to earn money from managing short-term properties. The first is by working with vacation-rental owners and charging a commission on the nightly rate. I've seen commissions as low as 10% and as high as 30%, but the industry standard is typically 15% to 20%.I also manage a building. It's a master lease, which means I pay a flat rate and collect rent from each unit as a short-term vacation rental. Some homeowners just want their flat-rate rent and don't want to be involved, so I'll do a short-term rental. You have to be a little more sophisticated in this because if you don't budget and know your expected revenue, you could misprice it and lose a lot of money. With that model, we want to get at least a 25% to 30% return to provide a buffer in slower months.<h2 id="10437455-20ce-4e54-81a9-64cada1f3402">My typical day</h2>Your typical workday will depend on how many properties you manage. We're managing roughly 30 properties now, so we have a team that handles guest support. I work about eight or nine hours a day, but the job is really 24/7. If there's an emergency, you need to be available.My typical schedule involves a lot of meetings. We always meet with the cleaning team to discuss maintenance and cleaning issues. We go over that once a week with one of the cleaning companies we work with. In the middle of the day, we'll work on pricing reports for owners, update the listings, and read through guest reviews.We also schedule <a target="_blank" class="" href="https://www.businessinsider.com/personal-finance/mortgages/home-inspection">property checks and inspections</a> at least once or twice a month, depending on the property. It requires a lot of coordination, so you'll have to get used to talking on the phone frequently, rather than texting or Slacking messages.<h2 id="6416bf44-fab1-45cc-8b50-23bbf7277ff0">The challenges and rewards of property management</h2>Managing properties is time-consuming, especially if you're doing short-term rentals. You have to have 24-hour guest support, and things like cleaning crews and a maintenance person have to be coordinated for each property. The logistics are significantly harder with vacation-rental management versus standard property management.The most rewarding part of the job is helping my clients or the owners see the untapped value in their homes and helping them earn more money than they would have anticipated. I get thrilled when I double their income. I'm also happy to get a five-star review or feedback that we were super attentive, paid attention to detail, provided great customer service, or resolved an issue quickly.<h2 id="be52c448-f4a1-4953-97a8-8fcbc0d51a77">Advice for transitioning to property management</h2>You have to be very organized, have structured processes, and be good at communicating with multiple stakeholders, including the vendors, owners, and guests. My corporate background helped me a lot because it had so much structure, and I came in with project management and logistical skills. I have a certification through the <a target="_blank" href="https://www.pmi.org/">Project Management Institute</a>, but getting a degree or certification is optional.To break into the industry, I recommend working for a vacation-rental company before branching out independently. Use the time to learn some of their best practices before you move on. Check out national companies like <a target="_blank" href="https://www.vacasa.com/">Vacasa</a> or <a target="_blank" href="https://www.hostgenius.ca/locations/tampa">Host Genius</a>, which usually hire in different markets.You could also work with a smaller company like mine, where you just reach out and say, "Hey, do you have any roles?" There's always something to be done, and management companies are always looking for good help. Another way to break in is to attend a <a target="_blank" href="https://www.vrma.org/events/event-calendar">regional or national vacation-rental management conference</a> to network. Find a conference in your area, and you'll meet a lot of managers in one setting.<h2 id="4fabd0d5-be6d-4e5a-ba5d-90ebef4300ff">What I wish I'd known before starting out</h2>Property management can be very rewarding, but I didn't realize how important it was to overcommunicate. I also didn't know how hard managing so many stakeholders would be. For every property, I usually have between four and seven different people involved. I have the owner, the lawn person, the trash person, the regular maintenance person, the cleaner for that house, and then I have my guest support.Sometimes, keeping track of who's who can be overwhelming. So if you want to manage a larger <a target="_blank" class="" href="https://www.businessinsider.com/financing-strategies-for-real-estate-investing-how-to-scale-portfolio-2024-5">portfolio</a>, you need a really good process and team to keep track of everything. You also have to be extremely organized, provide good customer service, and pay close attention to detail.

How I transitioned from a career in finance to short-term property management

As Finance Minister Nirmala Sitharaman unveiled the Union <keyword id="19955368" type="General" weightage="20" keywordseo="budget-2024" source="keywords">Budget 2024</keyword>, all eyes were on the <keyword id="20024321" type="General" weightage="20" keywordseo="housing-sector" source="keywords">housing sector</keyword>, which has been a focal point for both developers and <keyword id="19907145" type="General" weightage="20" keywordseo="homebuyers" source="keywords">homebuyers</keyword>. Expectations were high for increased deduction limits on home loan interest repayments, higher principal repayment deductions, and more robust incentives for first-time homebuyers. Last year's budget focused on increasing <keyword id="20254620" type="General" weightage="20" keywordseo="affordable-housing" source="keywords">affordable housing</keyword> through the Pradhan Mantri Awas Yojana (<keyword id="19945794" type="General" weightage="20" keywordseo="PMAY" source="keywords">PMAY</keyword>), with a significant allocation to achieve the goal of "Housing for All." The <keyword id="20152263" type="General" weightage="20" keywordseo="real-estate-sector" source="keywords">real estate sector</keyword> had previously seen incentives for developers building affordable housing, such as tax holidays under Section 80IBA and increased allocation through the SWAMIH fund to improve liquidity for stressed projects. <h2>Major announcements in Budget 2024</h2>As per FM Sitharaman's 2024 Budget announcements, PMAY is set to add an additional 3 crore affordable housing — houses priced under Rs 40 lakh — in rural and urban sections of India. This will be accomplished with Rs 10 lakh crores, which includes assistance of Rs 2.2 lakh crores over the next five years. A provision of <keyword id="21240797" type="General" weightage="20" keywordseo="interest-subsidy" source="keywords">interest subsidy</keyword> to facilitate loans at affordable rates is also envisaged, the FM noted in her speech. “This is certainly pertinent – the affordable homes category has been seeing a decline in overall sales since the pandemic, to approximately 19% in H1 2024 from over 38% in the period before the pandemic in 2019,” notes Anuj Puri, Chairman of ANAROCK Group. “Consequently, this segment’s percentage share of the total housing supply in the top 7 cities also fell to 18% in H1 2024 from nearly 40% in 2019. Any boost to this vital segment is therefore welcome.” As per December 2023 reports, 65% of houses under PMAY-Urban had been completed and delivered to beneficiaries since the scheme was introduced in 2015. This amounts to over 78 lakh pucca houses out of the 1.18 crore sanctioned. The new addition to PMAY will thus attempt to more than triple the quadruple the number. <h2>Tax reliefs and transparent rental policies</h2>This year, the sector expected further <keyword id="20345361" type="General" weightage="20" keywordseo="tax-relief" source="keywords">tax relief</keyword> measures for homebuyers and developers. Key demands are aplenty, including increasing the deduction limit for home loan interest repayment from the current Rs 2 lakhs to Rs 3-4 lakhs for self-occupied properties, reintroducing tax exemptions for first-time homebuyers, standardising the definition of "Affordable Housing", and reducing GST on construction materials like cement and steel. However, there has been only disappointments on this front based on the announcements so far. However, in terms of the tax changes, the Budget has proposed a massive reduction in rental matters for the individual. While the current tax deducted at source (TDS) for Payment of rent by individuals or HUF under Section 194-IB stands at 5%, the new budget is set to bring this down to 2%, effective from October 1, 2024. <div type="Article" hostid="261" msid="111946291" title="Union Budget 2024-25 key highlights: Angel tax to be scraped" mstype="2" mssubtype="0"></div>Further, the government has promised to enable and implement policies and regulations for efficient and transparent <keyword id="20071228" type="General" weightage="20" keywordseo="rental-housing" source="keywords">rental housing</keyword> markets with enhanced availability. <h2>Additional initiatives</h2>Further, dormitory-style accommodations have also been announced for industrial workers in public-private partnership mode with Viability Gap Funding (VGF) support and commitment from anchor industries. VGF is a scheme that helps support important infrastructure projects that may not be financially viable, through grants that total up to 20% of the total project cost. The FM also announced that policies and regulations for efficient and transparent rental housing markets with enhanced availability will be put in place, to ease the rental and home-owning process. <div type="Article" hostid="261" msid="111953230" title="Union Budget 2024-25: Mobile Phones to get cheaper, as FM Nirmala Sitharaman reduces basic customs duty to 15%" mstype="2" mssubtype="0"></div>Markets are optimistic in the aftermath of these announcements, with many housing finance companies recording healthy gains since the speech. Puri notes that the renewed focus on rural and urban job creation, if effective, may provide some boost to affordable housing in even tier 2 and 3 cities. “The Finance Minister's allocation of ₹10 lakh crore to help 1 crore poor middle-class families buy houses will boost the demand for residential properties,” remarks Divyam Mour, Research Analyst at Samco Securities. ”This funding, along with interest subsidies, will greatly benefit real estate developers like DLF, Macrotech Developers, NBCC, and Sunteck Realty, as well as housing finance companies focused on the lower and middle classes, such as Aadhar Housing Finance, Aptus Value Housing Finance, and Aavas Financiers.”

Budget 2024: More affordable housing, lowered rent TDS — here’s what will change for the housing sector this year

<ul class="summary-list"><li>In October 2023, Isaac French sold his micro-resort for $7 million.</li><li>French, who built the property for $2.5 million, said the price of the sale was right.</li></ul>This as-told-to essay is based on a transcribed conversation with Isaac French, 27, about selling his Texas-based micro-resort in 2023. Business Insider has verified the sale of the property with documentation. The following has been edited for length and clarity.I had a dream to create a village of Nordic-inspired cabins in the heart of Texas.I found a five-acre parcel of land in Waco on Zillow, just a few miles from my home. In March 2021, I purchased the land using a short-term loan and personal savings for $138,000.In nine and a half months, I managed the design and construction of a seven-unit <a target="_blank" class="" href="https://www.businessinsider.com/starting-successful-tiny-house-airbnb-business-tips-2023-1">micro-resort</a> with an immersive natural setting. I financed the build with a construction loan from a local community bank and through raising equity from friends and family. It cost $2.5 million to build, including a container pool and hot tubs, which we added later on.We launched in January 2022. A travel influencer who marketed the resort on Instagram helped us go viral and generate a huge number of bookings. It was like an instant goldmine.We went all in on Instagram, growing the brand through creating content and partnering with influencers. Some of our early guests became superfans, coming back multiple times a year and bringing others with them. In our first 12 months of being open, we brought in $860,000 in bookings.The entire time we operated the business, I kept in mind that if someone came and offered the right price and terms, I'd consider selling it. I believe that every material possession should have a price tag attached to it.I sold the property, called <a target="_blank" class="" href="https://www.businessinsider.com/tiny-house-airbnb-hotel-waco-texas-see-inside-2022-10">Live Oak Lake</a>, for $7 million in October 2023. I learned a lot about securing a deal, including the value of having a good broker and attorneys.<h2 id="25fde6b5-f457-43bf-be94-6ce8e4254041">The uniqueness of the property helped us get a good price on the sale</h2>Live Oak Lake was like my baby. I built it from the ground up.The first three months after we opened were challenging. I was learning how to integrate <a target="_blank" class="" href="https://www.businessinsider.com/real-estate-passive-income-hospitality-short-term-rental-airbnb-2024-10">property management software</a>, and my wife was doing the cleaning. We hired a part-time cleaning and guest communications manager and a part-time operations manager, who then ran the property after the first few months.I was then spending around five to 10 hours a week on the business, mostly doing marketing. Because you're open for business 24/7 in hospitality, some of those hours were late at night when guests were arriving late. I was doing personal branding and coaching alongside the hotel. My wife and I also did mission work with our church.Part of the reason I considered selling Live Oak Lake was because of the stress of running it. Even though I automated elements for efficiency, in <a target="_blank" class="" href="https://www.businessinsider.com/hiring-jobs-restaurants-hotels-leisure-hospitality-healthcare-government-2024-7">hospitality</a>, the guest experience is paramount. I was focused on blowing guests away and wanted to look at every single review. It was hard to unplug from the business.We listed Live Oak Lake for sale in the summer of 2022. Several parties were interested, but we felt the property was worth more. We removed that listing and raised the price by $1 million when we next listed in January 2023.A broker who specialized in outdoor hospitality reached out and helped me from there. When we relisted the property, the broker helped vet the interested parties.We were about to <a target="_blank" class="" href="https://www.businessinsider.com/best-sales-tips-for-closing-deals-faster-2016-5">close on a deal</a> for $6.5 million, but the buyers backed out the day before we were set to close. It was an emotional roller coaster.A few days later, we received another offer for $7 million from a private group of investors, which we were able to close on. The property is being run similarly to before, and some of my friends who I hired to manage things on the ground still work there.I think the uniqueness and novelty of the property, the audience we built, and the quality of the hospitality we offered helped us sell for that price.We weren't in a hurry to sell, but $7 million was a lot of money. Plus, I hit it off with the buyer and liked their vision. I felt they understood what made us special, like our social media following, direct bookings, and unique experience.<h2 id="c7a0c906-c322-4402-99d2-bf69962ff44c">I learned a valuable lesson about selling a property</h2>One thing I learned from the selling process was the importance of having good attorneys and a great <a target="_blank" class="" href="https://www.businessinsider.com/personal-finance/mortgages/how-to-find-real-estate-agent">broker</a>.Our broker was local, which was a huge help. There were a lot of <a target="_blank" class="" href="https://www.businessinsider.com/personal-finance/mortgages/home-inspection">property inspections</a> and meetings with prospective buyers. He could help with those things without me having to drop everything.He alleviated my emotional volatility and attachment to the property because I didn't have to be involved in every interaction. I'm a very detail-oriented person who likes to micromanage things. I needed to trust other people, like my attorneys and the broker, who could take my hands off of the selling process. I'd highly recommend getting a broker to anyone <a target="_blank" class="" href="https://www.businessinsider.com/homebuilders-new-construction-rental-homes-investors-price-cuts-mortgage-rates-2024-11">selling a property</a>.<h2 id="f9154a67-a1d5-4e4c-a88c-c48ff6eebfa6">Selling the property has alleviated my stress</h2>I think I sold Live Oak Lake at the right time. I held the property just long enough to gain thorough experience operating a micro-resort and build it to a point where it was really valuable.Selling has alleviated stress in my life. I have an office and art studio in my backyard, where I can now work on other ventures as and when I want. I consult with other micro-resort developers, which is how I'm funding my lifestyle now.I think I would own and operate another project, but I'd want to hire a full-time manager that I could train to manage our operations.The Live Oak Lake project was an amazing project, a baptism by fire in the realms of <a target="_blank" class="" href="https://www.businessinsider.com/personal-finance/tips-real-estate-investing-expert-get-started-2024-2">real estate</a>, marketing, and hospitality. The price was right, so it made sense to sell it.Do you have a real estate story you want to share with Business Insider? Email <a target="_blank" href="mailto:ccheong@businessinsider.com">ccheong@businessinsider.com</a>

I built a 'tiny house' Airbnb hotel and sold it for $7 million. Here's why I decided to walk away when I did.

Reliance Industries, TVS Motor, LIC Housing Finance and other hot stocks to watch out for on October 22

<ul class="summary-list"><li><a target="_blank" class="" href="https://www.businessinsider.com/kamala-harris">Vice President Kamala Harris</a> shared a plan to build 3 million new homes in her first policy speech.</li><li>Housing experts told Business Insider that targeting America's housing supply shortage is critical.</li></ul>Vice President Kamala Harris' <a target="_blank" class="" href="https://www.businessinsider.com/kamala-harris-economy-proposal-25k-first-time-homebuyers-down-payent-2024-8">newest housing proposal</a> is giving YIMBY — and that's great news for the housing market, where supply has been unable to keep pace with demand, forcing prices up and buyers out.The Democratic presidential candidate revealed the first details of her new economic agenda on Friday, which she hopes to implement during her first 100 days in office. A key part of her proposal involves building 3 million new homes over a four-year period.It slots neatly into the <a target="_blank" class="" href="https://www.businessinsider.com/yimbys-winning-lower-house-prices-rents-build-more-homes-neighborhoods-2023-9">YIMBY movement</a>, which stands for "Yes, In My BackYard," and is a pro-development movement focusing on increasing high-density and affordable housing supply by targeting barriers to new building. (It's a counter to the NIMBY, or "Not In My BackYard" movement.)Harris said Friday that her administration plans to build 3 million units by working in partnership with workers and the private sector to go after obstacles in the way of new construction at both the state and local level."There's a serious <a target="_blank" class="" href="https://www.businessinsider.com/us-housing-affordability-home-shortage-market-construction-population-cities-zillow-2024-6">housing shortage</a>," Harris said on Friday. "In many places, it's too difficult to build, and it's driving prices up. As president, I will work in partnership with industry to build the housing we need both to rent and to buy."Housing policy experts say that's the most crucial aspect of her multi-pronged plan, because what the market needs most right now is <a target="_blank" class="" href="https://www.businessinsider.com/buying-a-home-new-construction-shortage-supply-mortgage-rates-housing-2024-6">greater supply</a>.Jung Hyun Choi, principal research associate at the Urban Institute's Housing Finance Policy Center, said the lack of supply "is the root cause of the current problem" with the housing market, adding that Harris' proposal to build more homes is "really the key solution of the housing market problem."Four housing policy experts Business Insider talked to all agreed."The strongest aspect I see in this proposal is that it recognizes the key issues with housing right now and that it is very explicit on trying to improve the number of homes being built — and not just the number of homes but the <a target="_blank" class="" href="https://www.businessinsider.com/us-housing-market-home-prices-wages-mortgage-rates-affordability-crisis-2024-7">number of affordable homes</a>," John Walsh, a research analyst at the Urban Institute's Housing Finance Policy Center, told Business Insider.Homeownership is one of the most reliable ways to create <a target="_blank" class="" href="https://www.businessinsider.com/how-americans-build-wealth-changing-stocks-homes-people-missed-out-2024-8">stability in Americans' economic lives</a> and should be a priority, according to Christopher Mayer, a professor of real estate at Columbia Business School who praised Harris' emphasis on supply."I think most people should be homeowners," Mayer said, noting the falling homeownership rate among young people. "Owning a home is a proven way of building wealth. It creates stability for households."<div type="image" title="Rows of identical homes with uniform driveways and streets stretch towards the desert" height="2348" width="3131" msid="112579953" hostid="261" sizebytes="637540"></div><h2 id="4e83522f-24d6-4242-ba18-9043bcae7584">Addressing the housing shortage</h2>However, with the low supply of starter homes, those making the jump from renting to owning often have to contend with both high prices and steep mortgage rates.America is facing a significant housing shortage, with the country between 4 and 7 million homes short, <a target="_blank" href="https://www.npr.org/2024/04/23/1246623204/housing-experts-say-there-just-arent-enough-homes-in-the-u-s">NPR reported in the spring of this year</a>. Builders have cited supply chain issues, among other reasons building has stalled. Zoning also remains a large barrier to homes being built.COVID-19 only exacerbated the issue, Mayer said, as more people started working remotely. With her proposal to build 3 million new starter homes, Harris is aiming to address that critical gap.Harris' housing proposals expand on policies President Joe <a target="_blank" href="https://www.businessinsider.com/trump-biden-housing-crisis-policy-rising-home-prices-apartment-rents-2024-6">Biden has attempted to implement </a>since taking office, including loosening regulations that restrict construction. Former President Donald Trump also urged states and cities to <a target="_blank" href="https://www.bloomberg.com/news/articles/2019-06-26/trump-s-housing-order-could-worsen-affordability">pursue some zoning reform</a> while he was in office.The vice president's plan to build millions of new housing units depends on several novel methods. She intends to provide the nation's first tax incentive for builders who construct starter homes and sell them to first-time buyers. Harris also intends to create a $40 billion federal fund to incentivize local housing construction, an expansion of <a target="_blank" class="" href="https://www.businessinsider.com/biden-lower-cost-homeownership-hopeful-homebuyers-2024-3">Biden's proposed $20 billion fund</a>. To top it off, she vowed to expand existing tax incentives for businesses that construct affordable rental housing."The answer is more supply, and also the answer is more supply at the sweet spot, which is first-time ownership," said Susan Wachter, a professor of real estate and finance at the Wharton School of the University of Pennsylvania.She thinks Harris' commitment to building 3 million homes is the strongest part of her plan, as it will address what she called a "generational crisis" of rent and housing prices. The increase in home supply needs to correspond with an increase in available land, Wachter added.Part of Harris' proposed federal fund to encourage housing construction would make some federal lands eligible to be repurposed for new, affordable developments — something Trump recently promised to do as well.Both Choi and Walsh were quick to caution that while Harris' proposal is a great start to <a target="_blank" class="" href="https://www.businessinsider.com/homes-real-estate-how-to-fix-housing-crisis-factors-construction-2024-3">alleviating housing burdens</a> and reducing wealth disparity, more details are needed to determine its ultimate effectiveness."The devil is really in the detail of where these homes would actually be used," Walsh said.<div type="image" title="Kamala Harris onstage at a rally" height="3652" width="4869" msid="112579951" hostid="261" sizebytes="1685526"></div><h2 id="1a035518-d170-45f5-8192-5fec303416b6">Targeting down payments and Wall Street</h2>Harris' other flagship proposals — offering $25,000 in down-payment assistance to new homeowners and <a target="_blank" class="" href="https://www.businessinsider.com/home-equity-investments-heloc-refinance-loan-investors-homeownership-housing-market-2024-2#:~:text=Between%20the%20beginning%20of%202020,according%20to%20the%20Federal%20Reserve.">preventing investors on Wall Street</a> from buying up starter homes — drew more mixed reactions from the experts that spoke to Business Insider.In Mayer's view, the <a target="_blank" class="" href="https://www.businessinsider.com/personal-finance/mortgages/tips-for-saving-for-a-down-payment#:~:text=Some%20loan%20programs%20allow%20for,get%20a%20better%20interest%20rate.">down-payment</a> policy is rooted in good intentions but may not be particularly cost-effective. Many first-time homeowners traditionally rely on their families for help with a downpayment, Mayer said, meaning lower-income buyers often don't have access to generational wealth, and the $25,000 could significantly help them. Yet, he would rather find ways to lower down payments across the board than distribute money as Harris is proposing.Wachter, meanwhile, said she supports the effort to aid potential homeowners with their down payments but is not confident the proposal would garner broad political support.While Wachter declined to comment on Harris' proposal to limit Wall Street's ability to buy single-family homes, Mayer is less enthusiastic about it."The vast amount of single-family rentals are not owned by people on Wall Street, they are owned by people who own small numbers of houses," he said of the plan. "Institutional investors bring efficiencies to management of that, and those efficiencies generally result in better opportunities for renters."Despite lingering doubts about some aspects of Harris' proposal, the experts agreed that the basic premise of building more affordable, first-time homes is what the country needs."This would be a huge impact," Wachter said. "Right now, what's threatened is the ability to get onto that ladder to achieve housing security. And housing security where there are markets, where there are jobs, is the key issue for young Americans today."

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