More than 90% of Gen Z voters and 85% of millennial voters rank housing affordability as their top concern in the next presidential election, surpassing traditional hot-button issues like the economy and abortion rights.
A survey of nearly 3,000 U.S. homeowners and renters by Redfin released this week showed a marked shift in voter priorities amid an expensive housing market, especially among younger generations.
While the overall strength of the economy remains the top issue for Gen X and Baby Boomers, home affordability has emerged as a top concern for Gen Z and Millennials. The survey found that 91% of Gen Z adults and 87% of Millennials consider home affordability to be an important issue in their voting decision, compared to 83% of Gen Xers and 80% of Baby Boomers who said the same.
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It's a generational gap that quantifies the economic challenges facing younger Americans: Rising home prices and rising mortgage rates are putting homeownership out of reach for younger generations.
“Home affordability is a linchpin in this year's presidential election because, despite a fairly strong economy, low unemployment and rising wages, buying a home seems out of reach for many Americans,” Elijah de la Campa, senior economist at Redfin, said in the report. “This is especially true for young people, who are seeing the costs of buying a first home rise twice as fast as their incomes.”
As of May, home prices were up about 38% from pre-pandemic times, to $442,500, exacerbating the home affordability crisis. The highest mortgage interest rates since the turn of the century have exacerbated the problem, making 2024 the toughest year on record for homebuyers.
This particularly affects younger Americans, with just 26% of Gen Z adults and 43% of millennials owning their homes — well below the national average of 65%. A lack of equity from previous home sales makes it more difficult for first-time homebuyers to afford a down payment and mortgage in today's expensive market.
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Additionally, the rental market is getting more expensive, with the average rent in the U.S. increasing by more than 20% since 2019, discouraging younger generations from saving up to buy a home.
“While young people are concerned about other political issues such as immigration and abortion rights, they are more likely to cite housing affordability as a voting factor because it directly affects their housing, their lifestyle and their ability to build wealth,” de la Campa said.
In contrast, Gen Xers and Baby Boomers who already own homes prioritize strengthening the overall economy and preserving democracy.
President Joe Biden has proposed a plan to ease housing costs, offering a two-year, $10,000 tax credit for first-time homebuyers to offset rising interest rates. To further ease the burden of home buying, Biden's plan also includes a one-year tax credit of up to $10,000 for middle-class families who sell their homes below the area median price, as well as an effort to build or renovate 2 million more homes.
Additionally, Biden proposed offering first-generation homebuyers $25,000 in down payment assistance.
In contrast, former President Donald Trump's approach focused on increasing the supply of affordable housing by encouraging the construction of new homes in suburban and exurban areas where land is cheaper.
If elected in November, Trump plans to roll back Biden's housing restrictions that targeted suburban areas and has proposed lowering inflation and mortgage rates by boosting domestic energy production and curbing government spending.
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This article, “Young Americans Will Vote for Presidential Candidate Who Prioritizes Affordable Housing,” originally appeared on Benzinga.com.
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