Vice presidential candidate Tim Kaine’s outline of Hillary Clinton’s housing plan focused on racial discrimination. While that’s an important issue, it isn’t really at the heart of Clinton’s housing plan. In fact, it isn’t even mentioned in Clinton’s platform.
Instead, the heart of the plan is huge subsidies to middle-class homebuyers aimed at increasing homeownership. Clinton proposes to give anyone who earns less than a region’s median income up to $10,000 to help with a downpayment on a house.
There are several problems with this idea. First, Clinton doesn’t restrict the grants to first-time homebuyers, so it is likely that the program won’t significantly increase homeownership. Second, the median family income in a dozen urban areas, from Boulder to San Jose, is more than $100,000 a year, so a lot of well-off people would qualify free federal money. Third, the $10,000 would only be given to people who can match it with their own savings, and since nearly half of all Americans don’t even have $400 to spare, not much of Clinton’s promise will reach low-income people.