Which party has the edge on housing? Polls say neither

As housing affordability appears to be turning into a political priority in a pivotal election year, a recent poll suggests it is an issue that offers no party an advantage.

The recent national survey from the University of Michigan and the Financial Times found Americans' own financial ability to afford a home ranked as a top concern by an almost equal 70% share of Democrats, Republicans and independent voters alike. Efforts to address housing issues are being enacted in red and blue regions of the country. 

"Housing remains one of the few areas of bipartisan agreement, and poll results are consistent with what's seen nationwide at the state and local levels," said Brian Connolly, assistant professor at University of Michigan's Ross School of Business.  

The current level of housing prices is hitting all consumers, regardless of their income levels. A full 60% of poll respondents earning more than $100,000 per year listed their own ability to afford housing among their top three concerns, a "remarkable" result given their high levels of income, Connolly also noted. 

"It demonstrates the housing crisis poses problems far beyond low-income households," he said.

Separate research from Clever Real Estate released this week determined that a first-time home buyer needed to earn almost $120,000 to afford the median-priced U.S. home with a 10% down payment. A typical household earns just under $75,000 today. Clever found only four states — Indiana, Iowa, Ohio and West Virginia — where a median-priced for-sale home was in reach for a median income. 

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A 2024 study from Redfin also reported that housing affordability, which the brokerage said was at a record low, could factor into who a majority of voters eventually choose for president. Research was conducted prior to President Biden's State of the Union address, where home affordability emerged as a key talking point. 

Regardless of where individuals might stand, current efforts among state jurisdictions aimed at alleviating home affordability demonstrate how the issue crosses borders and political affiliations.   

"For instance, in recent years, the Democratic-controlled legislatures in California and Massachusetts and the Republican-controlled legislatures in Montana and Utah have adopted remarkably similar measures to ease regulatory constraints on housing construction — reflecting a broad consensus that costs are a problem and the U.S. must make it easier to build needed housing," Connolly said. 

Moving beyond the effect of affordability on voters' individual financial circumstances, the Michigan-Financial Times survey showed diverging views on how significantly home prices figured in broader socioeconomic trends. The poll sampled approximately 1,000 voters across the country representing a range of socioeconomic groups.

While a 57% share said home affordability's effect on overall economic growth was a top concern, Republicans tended to note it as a priority more frequently compared to Democrats. Older respondents also were more likely to mention housing cost's impact on economic growth.

Approximately 38% and 36%, respectively, cited how affordability challenges might hinder efforts to make progress on racial and income segregation and environmental sustainability as a leading issue, with Democrats more likely to rank them in their top three. Nonwhite respondents, particularly, ranked them higher in importance, regardless of political affiliation, Connolly said.

A greater share of Republicans and independents said home prices' effect on family and friends home buying potential was a top concern compared to Democrats. 

But overall, the data showed that "housing is a pocketbook issue," Connolly said. "By a wide margin, people are more concerned about their ability to afford housing where they want to live, rather than other problems associated with unaffordable housing."