Housing affordability will continue to be a crucial issue in the upcoming presidential election, with swing states playing a pivotal role in determining the next president and the trajectory of housing costs.
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Since the 2020 election, mortgage rates and home selling prices have surged, reaching unprecedented levels in swing states, as reported by Redfin on Tuesday.
The issue of housing affordability is a central focus of the upcoming presidential election, with swing states such as Arizona, Nevada, Wisconsin, Michigan, Pennsylvania, Georgia, and North Carolina playing a crucial role in shaping the future of housing costs. According to Redfin, voters in swing states are deeply concerned about housing affordability due to the steep rise in home prices and mortgage rates, coupled with a limited inventory of homes for sale.
Redfin’s analysis reveals that monthly housing payments in swing states have nearly doubled, soaring by 92 percent to $2,161. Median home sale prices have surged by around 40 percent since 2020, peaking at $316,063 in 2024. The current mortgage rate stands at approximately 7 percent, more than double the record low of 2.65 percent in 2021.
Redfin’s comprehensive evaluation of housing market data and income trends across blue, red, and swing states from 2016 to 2024 underscores the significant challenges faced by homeowners. The disparity between income growth and escalating home prices, exacerbated by the surge in homebuying during the COVID-19 pandemic, has created a complex situation for many households.
Furthermore, the demand for remote work and favorable mortgage rates in 2020 and 2021 led to a notable increase in home prices, particularly in Sun Belt swing states like Georgia and Nevada. Major metropolitan areas such as Atlanta and Las Vegas witnessed a substantial influx of residents during this period.
For a home to be considered affordable, homeowners should ideally allocate no more than 30 percent of their income towards monthly housing payments. However, the data indicates a concerning trend, with a dwindling percentage of affordable homes available to median-income households in swing, red, and blue states.
Redfin’s findings also highlight the challenges faced by Black and Hispanic families in acquiring homes in swing states, with housing costs outpacing the growth in equity. The report reveals that these families are allocating a significant portion of their income towards housing, reflecting the broader affordability crisis.
As the 2024 election approaches, President Biden has outlined a plan to address housing affordability, while Donald Trump has proposed strategies to tackle the housing market’s challenges.
Email Richelle Hammiel