The National Association of Home Builders (NAHB) responded to Vice President Harris’ housing plans The study, presented on Friday as part of its economic agenda, concludes that while the proposal has some positive elements, it fails to address a key policy area that is hampering housing construction.

Harris’ plans include up to $25,000 down payments for first-time buyers, which she said would benefit more than four million people over four years if she is elected president. She also called for the construction of three million new housing units, tax incentives for building new homes for first-time buyers and a $40 billion housing innovation fund.

Carl Harris, chairman of the NAHB and a homebuilder from Wichita, Kansas, said in a statement that while the vice president’s focus on the apartment and homeownership sector is “commendable,” her plan does not address the regulatory hurdles that prevent the industry from building more supply.

“Unfortunately, the plan does not mention the reduction of burdensome federal regulations that would reduce the cost burden of 24% for Single-family house construction or the almost 41 percent increase in the construction of an apartment building,” he explained.

HARRIS PROPOSES $25,000 DOWN PAYMENT ASSISTANCE FOR FIRST-TIME HOME BUYERS – IS IT A GOOD IDEA?

Vice President Harris outlined part of her economic policy agenda on Friday, which includes a focus on home financing. (Allison Joyce/AFP via / Getty Images)

“In addition, following President Biden’s rent cap proposal, NAHB is concerned that efforts to target institutional investors will harm the growing single-family rental market, particularly homes built for rent. Rental marketwhich further discourages the construction of housing that is otherwise urgently needed,” he added.

The NAHB statement states: Tax credit for the construction of new houses and apartments, as well as down payment assistance and the expanded tax credit for first-time home buyers would help stimulate demand.

FORMER WHITE HOUSE ECONOMIST WARNS HARRIS’ AGENDA COULD ‘SHUT DOWN’ ENTIRE U.S. ECONOMY

According to NAHB, Harris’ plan did not address regulatory issues that hinder new housing construction and limit supply. (/Getty Images)

“A tax credit to help builders build more entry-level housing and expanding and strengthening the low-income tax credit will help builders build much-needed new homes and apartments,” said NAHB’s Harris.

“But any tax incentive to encourage entry-level home building needs to be tailored to local market conditions and widely available. A $10,000 tax credit for first-time buyers and a $25,000 down payment are positive demand incentives, but the plan needs to be more focused on increasing supply as the country faces a deficit of around 1.5 million housing units,” he added.

HOW IT STARTED… HOW IT’S GOING: HOUSING AND CAR INSURANCE COSTS STILL HIGHER THAN WHEN BIDEN TOOK OFFICE

According to NAHB, Harris’ tax credits and down payment assistance for first-time home buyers would boost demand. (Allison Joyce/Bloomberg via / Getty Images)

NAHB’s Harris called the group’s plan a blueprint for the vice president to more comprehensively address the problems facing the American housing market.

“NAHB’s 10-point plan to alleviate America’s housing affordability challenges focuses on removing the barriers that prevent builders from increasing the nation’s housing supply. These include Reduction of unnecessary regulationsfixing the supply chains for building materials and implementing sensible and cost-effective building codes, to name a few,” Harris wrote.

GET FOX BUSINESS ON THE GO BY CLICKING HERE

“Addressing these concerns would help the Vice President achieve her goal of building three million new housing units,” said NAHB’s Harris. “NAHB looks forward to working with Democratic and Republican lawmakers at all levels of government to implement policies that will enable builders to increase housing construction and give more hardworking families the opportunity to own or rent homes.”

FOX Business’ Breck Dumas contributed to this report.