Young Americans want to know how the next president will solve the problem of rising housing prices. (iStock)
Rising home prices are the top concern for young Americans heading to the polls for the Nov. 5 presidential election, according to a recent Redfin survey. investigation.
The survey found that about 91% of Gen Zers cited home affordability as a more important factor in their vote than other issues, including the economy, abortion and gun rights, preserving democracy, and foreign wars. Millennials, Gen Xers, and Baby Boomers all ranked the economy as the most important factor in choosing a president. Gen Xers and Baby Boomers also tended to prioritize preserving democracy over home affordability.
Still, at least 80% of all generations said home affordability was key to their vote. The U.S. housing market has stagnated as homebuyers struggle with mortgage rates hovering near 7% for a 30-year loan and home prices are up more than 40% since before the pandemic home-buying boom. Home sales prices hit an all-time high of $394,000 According to Redfin, sales in the four weeks ending June 9 increased 4.4% year over year, the biggest increase in three months.
“Home affordability is a linchpin in this year’s presidential election because, even though the economy is doing pretty well, unemployment is low and wages are rising, buying a home seems impossible for many Americans,” said Elijah de la Campa, senior economist at Redfin. “This is especially true for young people, who are seeing the cost of buying a first home rise twice as fast as their incomes.”
“While young people are interested in 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 continued.
If you are considering buying a home, it is a good idea to compare different lenders to find the best mortgage interest rate. Visit Credible to compare different lender options and choose the one with the best interest rate.
Biden to give homebuyers $400 a month: State of the Union
Both candidates plan to address housing issues.
President Joe Biden has asked Congress to invest more than $175 billion in affordable housing efforts, according to the White House. statement.
The Biden administration proposes using some of the funds to incentivize state and local governments to build and preserve millions of affordable housing units for rent and ownership, including accessory dwellings and manufactured homes, and to reduce barriers to affordable housing development.
The administration also proposed a new Neighborhood Homes Tax Credit. The proposed federal initiative would inject $16 billion into the housing market to add housing stock and $10.1 billion into homebuyers, making home purchases more affordable for homebuyers. Down Payment AssistanceThe tax credit is provided on the condition that a low- or moderate-income homeowner occupies the home.
Biden also wants Congress to pass legislation that would give first-time homebuyers and first-time home sellers a $10,000 tax credit, paid as monthly payments of $400 over two years.
The tax credit is equivalent to lowering mortgage rates for the average home by 1.5 percentage points over two years. Over the next two years, more than 3.5 million middle-class families will be able to purchase their first home. Extending the credit to second-home buyers could also improve housing availability for first-time homebuyers.
Former President Donald Trump’s second term Federal Government Reform and Reorganization PlanOne plan is privatization Fannie Mae and Freddie Mac To promote competition in the housing finance market and create a system that encourages sustainable homeownership.
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Homebuyers save thousands as mortgage rates fall: Redfin
Home insurance premiums are another obstacle for home buyers
While many Americans still dream of homeownership, a recent survey from BMO Financial found that 71% say they’re waiting for interest rates to fall before entering the housing market. investigation.
Americans will likely have to wait another summer for any relief.Since July, the Fed has kept the federal funds rate in a range of 5.25% to 5.5%.Fed officials expect only one rate cut in 2024 but have said they need more confidence that inflation is moving toward their 2% target rate before lowering rates.
High mortgage rates aren’t the only thing delaying the dream of homeownership: 43% of respondents say rising home insurance costs could affect their ability to own or afford a home. Gen Z (60%) are most affected by these costs, followed by millennials (55%).
Homeowner’s insurance rates have risen 55% over the past four years as losses pile up and insurers struggle to recoup costs, according to a recent Guaranteed Rate Insurance report. reportPremiums for 2023 alone increased by 19%.
“One of the most notable market trends in 2023 and likely to continue into 2024 is continued volatility, particularly related to the presence of top insurers in states and the availability of insurance,” the Guaranteed Rate report states. “In some areas, top insurers are no longer offering new insurance. However, these departures have not created a ‘vacuum,’ as there is evidence that new insurers, particularly of surplus lines, are entering the market in certain states because they are able to offer insurance at higher premiums.”
If you want to save money on your home insurance premiums, shop around for the best rates. Credible helps you compare home insurance rates from top insurance companies in one place.
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