In Swing States, Typical Homebuyer’s Monthly Payment Has Nearly Doubled Since The Last Presidential Election - Seite 2

Just one-third of swing-state listings are affordable to the typical family, down from two-thirds in 2020

To look at affordability another way, just over one-third (35.1%) of all homes listed for sale in swing states so far this year were affordable to a household earning the median income, down from two-thirds (65.5%) in 2020.

In red states, just over one-third (36.6%) of listings are affordable on the median income, down from 69% in 2020. In blue states, just one-quarter (25.2%) of homes are affordable on the median income, down from half (50%) in 2020.

Housing affordability is a major factor in this year’s presidential election

More than nine in 10 adult Gen Zers say housing affordability is important when deciding who to vote for in the upcoming presidential election, making it a top issue for voters of that generation, according to a Redfin-commissioned survey fielded in February. While several other topics have since risen to the forefront of election news—including President Biden’s age, an assassination attempt at a rally for Donald Trump and the announcement of Trump’s running mate—housing affordability is a mainstay in politics because it directly impacts nearly everyone in the country.

“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. That’s especially true for young people who are earning low incomes and haven’t yet built up their savings, making them feel it would be an uphill battle to reach their parents’ level of financial success,” said Redfin Senior Economist Elijah de la Campa. “While swing states have historically had lower housing costs than blue states—and most still do—markets in swing states have not been immune to the affordability crunch the country has been facing for the last several years. The inability to afford a home is making a lot of voters feel bad about the economy and their financial prospects.”

The flip slide of rising housing costs is that it also means home values are rising, which is a boon to homeowners’ pocketbooks. The average U.S. homeowner has seen their home’s value increase significantly over the last several years, which means many of them are holding a lot of wealth via housing equity. Still, at least 80% of millennials, Gen Xers and baby boomers—who are more likely than younger Americans to own a home—said housing affordability will factor into their vote in the upcoming presidential election. That’s partly because some people who already own homes would like to move up to a bigger or better home, but are unable to do so because the increase in housing costs has outpaced the increase in their equity, and because mortgage rates have risen so much they’re reluctant to give up their low rate.