Housing Affordability: A Top Issue in the 2024 Presidential Election

Introduction

As the 2024 presidential election approaches, one issue stands out as a top concern for many Americans: housing affordability. The rapid increase in mortgage rates and home prices has made it challenging for many to afford a home, especially in swing states. In this article, we’ll explore the current state of housing affordability, its impact on voters, and what the presidential candidates have proposed to address this issue.

The Current State of Housing Affordability

According to Redfin, a real estate brokerage company, swing-state monthly housing payments have nearly doubled, rising by 92 percent to $2,161. Since 2020, median home sale prices have increased by approximately 40 percent, hitting an all-time high of $316,063 in 2024. The mortgage rate is currently around 7 percent, more than double the record low of 2.65 percent in 2021.

Impact on Voters

The inability to afford a home is making a lot of voters feel bad about the economy and their financial prospects. As Redfin Senior Economist Elijah de la Campa said, "Voters in swing states care about housing affordability because soaring home prices and mortgage rates, along with a shortage of homes for sale, have made homeownership feel impossible for some Americans."

Analysis of Housing-Market Data and Incomes

Redfin’s analysis of housing-market data and incomes for blue, red, and swing states was gathered from 2016-2024. The data is annual for 2016-2023, while 2024 data includes January through May. The analysis found that:

• In swing states, 35.1 percent of homes on sale this year were affordable to a household earning the U.S. median income of $79,155, down from 65.5 percent in 2020.
• In red states, 36.6 percent of listings are affordable on a median income, down from 69 percent in 2020.
• In blue states, 25.2 percent of homes are affordable on a median income, down from half in 2020.

The Challenge for Homebuyers

Homebuyers face a major dilemma since incomes have not increased at the same rate as home prices. This is due in part to aftereffects of escalated homebuying during the COVID-19 pandemic. As a result, many homebuyers are stuck in a cycle of debt, unable to afford the homes they want.

The Presidential Candidates’ Proposals

Ahead of the upcoming 2024 election, President Biden released a plan for lowering housing costs, while Donald Trump mentioned a strategy for tackling the market. The proposals include:

• President Biden’s plan: The plan aims to increase the supply of affordable housing, reduce regulatory barriers, and provide down payment assistance to first-time homebuyers.
• Donald Trump’s strategy: The strategy focuses on reducing regulations, increasing the supply of housing, and providing tax credits to homebuyers.

Conclusion

Housing affordability is a critical issue in the 2024 presidential election, with swing states playing a significant role in determining the next president and the future of housing costs. As the election approaches, it’s essential for voters to understand the current state of housing affordability and the proposals put forth by the presidential candidates.

FAQs

Q: What is the current state of housing affordability in swing states?
A: According to Redfin, swing-state monthly housing payments have nearly doubled, rising by 92 percent to $2,161.

Q: How has the mortgage rate changed since 2020?
A: The mortgage rate has increased from 2.65 percent in 2021 to around 7 percent in 2024.

Q: What percentage of homes on sale in swing states are affordable to a household earning the U.S. median income?
A: According to Redfin, 35.1 percent of homes on sale in swing states are affordable to a household earning the U.S. median income of $79,155.

Q: What are the presidential candidates’ proposals for addressing housing affordability?
A: President Biden’s plan focuses on increasing the supply of affordable housing, reducing regulatory barriers, and providing down payment assistance to first-time homebuyers. Donald Trump’s strategy focuses on reducing regulations, increasing the supply of housing, and providing tax credits to homebuyers.

Author: www.inman.com

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