Yahoo Finance Young Americans Will Vote For The Presidential Candidate Who Makes Affordable Housing A Priority
Over 90% of Gen Z voters and 85% of Millennial voters rank housing affordability as their foremost concern in the upcoming presidential election, outstripping traditional hot-button issues like the economy and abortion rights.
A Redfin survey of roughly 3,000 U.S. homeowners and renters released this week points to a marked shift in voter priorities amid an unaffordable housing market, particularly among the younger generations.
While the strength of the overall economy remains the top issue for Gen Xers and Baby Boomers, housing affordability is emerging as a chief concern for Gen Z and Millennials. The survey found that 91% of adult Gen Zers and 87% of Millennials consider housing affordability a key issue in their voting decision, compared to 83% of Gen Xers and 80% of Baby Boomers.
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It's a generational divide that quantifies the economic challenges younger Americans face. Due to soaring home prices and elevated mortgage rates, they increasingly find homeownership out of reach.
"Housing affordability is a cornerstone of this year's presidential election because even though the economy is fairly strong, unemployment is low and wages are rising, buying a home feels impossible for many Americans," Redfin Senior Economist Elijah de la Campa was quoted saying in the report. "This is particularly the case for young people, who have seen the cost of starter homes increase twice as fast as incomes."
As of May, home prices have surged, roughly 38% since the pre-pandemic period at, $442,500, worsening the affordability crisis. High mortgage rates, last seen at the turn of the century, have further compounded the issue, making 2024 the least affordable year on record for homebuyers.
That has particularly impacted young Americans, with only 26% of adult Gen Zers and 43% of millennials owning a home—far below the national average of 65%. The lack of equity from previous home sales makes it more difficult for first-time buyers to afford down payments and mortgage payments in today's expensive market.
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Moreover, the rental market has become more costly, with the median U.S. asking rent increasing over 20% since 2019, preventing younger generations from saving for a home.
"Young people care about other political issues, like immigration and abortion rights, but they're more likely to cite housing affordability as a factor in their vote because it directly impacts the roof over their head, their lifestyle and their ability to build wealth," de la Campa said.
In contrast, Gen Xers and Baby Boomers, many of whom already own homes, prioritize the overall strength of the economy and the preservation of democracy.
President Joe Biden has proposed measures to alleviate housing costs, including a $10,000 tax credit for first-time homebuyers spread over two years to help offset higher interest rates. To further address housing affordability, Biden’s plan includes a one-year tax credit of up to $10,000 for middle-class families who sell homes below the median price in their area, along with initiatives to build or renovate more than 2 million housing units.
Additionally, Biden proposed providing $25,000 in down-payment assistance to first-generation homebuyers.
In contrast, former President Donald Trump's approach focuses on increasing the supply of affordable housing by encouraging the construction of new homes on the outskirts of cities and suburban areas, where land is less expensive.
If elected in November, Trump also plans to reverse Biden’s housing regulations aimed at suburbs and proposes lowering inflation and mortgage rates by boosting domestic energy production and curbing government spending.
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