Economic concerns are always important in an election year. This year is no different, and why should it be? On paper, the economy is doing well, but to the average American, it doesn’t feel that way, and there’s a reason for that: Housing.
During the real estate boom triggered by the pandemic and in the period afterward Affordable housing deteriorated at a rapid pace. Real estate prices shot up, Rent rose, and Mortgage interest rates To put it simply, many people can’t afford to buy a home, and some can barely afford rent, and that will influence voters when they head to the polls. We’re already seeing it: 91% of Gen Z adults say housing affordability is the most important issue when considering who to vote for in November’s presidential election. accordingly a survey commissioned by Redfin released today.
It’s the key issue for the generation, surpassing the strength of the overall economy, education, gun control or gun rights, and abortion. Affordable housing also came before preserving democracy, immigration, student debt, and foreign wars or geopolitical conflicts. And those are all issues that Gen Z has been vocal about, but it’s no surprise that housing is a focus. Last year was the lowest year on housing costs ever, according to Redfin. According to Redfin, only 26% of Gen Z adults (those ages 18 to 27) own their own home, and others pay expensive rents.
“Housing affordability is a cornerstone of this year’s presidential election because even though the economy is relatively strong, unemployment is low and wages are rising, many Americans find it impossible to buy a home,” said Elijah de la Campa, senior economist at Redfin, in commenting on the survey results.
He continued, “This is especially true for young people, for whom the cost of home ownership has risen twice as fast as incomes. Young people care about other political issues, such as immigration and abortion rights, but they are more likely to cite housing affordability as a factor in their voting decision because it has a direct impact on the roof over their heads, their lifestyle and their ability to build wealth.”
Millennials, Gen Xers and baby boomers cited the strength of the overall economy as the most important factor or concern influencing their presidential vote, the survey found. “However, at least 80% of each generation said housing affordability is an important factor,” according to Redfin. Housing affordability was third on the list of issues for millennials, fourth for Generation Xand, not surprisingly and surprisingly, in sixth place for the baby boomers (not surprisingly, because baby boomers are likely to be generally concerned about whether their children have enough living space, and this is surprising because many of them own their homes outright and have seen their values increase rapidly.
A separate report commissioned by Redfin Opinion poll A survey earlier this year that took a broader look at the situation found that more than half of homeowners and renters said housing affordability influenced their voting decision in the upcoming presidential election. Nearly two-thirds of homeowners and renters said housing affordability made them feel negative about the economy.
At the time, Redfin’s chief economist Daryl Fairweather said, “Housing affordability is the most important issue for voters, as high mortgage rates and home prices, along with an acute housing shortage, have made the dream of homeownership out of reach for many Americans. Although the economy is strong on paper, many families are not benefiting because they can barely afford the home they want or already live in. As a result, many feel trapped and unable to take the steps they want to improve their lives.”
This sentiment has only intensified in recent months, as the survey results published today confirm. An independent analysis by a former Barclays Analyst and Substack author Aziz Sunderji that Assets previously coveredfound that homeowners are twice as likely to describe themselves as staunch Republicans as renters – and renters are far more likely to describe themselves as staunch Democrats. Another study found that swing counties where housing prices have risen significantly in the four years before an election are more likely to vote for the incumbent candidate. Still, we’ll see if that dynamic changes this year or how it plays out. Welcome to the housing election.