Housing Affordability Emerges as a Crucial Issue for Younger Voters in 2024 Election

A recent survey reveals that 91% of Generation Z voters prioritize housing affordability over other political issues, such as the economy, abortion rights, and foreign policy. In contrast, older generations, including Millennials, Gen Xers, and Baby Boomers, view the economy as the most significant factor influencing their presidential choices. Experts suggest that young voters are particularly concerned about housing affordability because it directly affects their living conditions, lifestyle, and wealth-building opportunities. To address the housing crisis, the Biden administration has proposed a Neighborhood Homes Tax Credit aimed at first-time homebuyers and those selling starter homes. This initiative includes a $10,000 tax credit, which could effectively lower the median mortgage rate by 1.5 percentage points over two years. Additionally, expanding this credit to second-home buyers may help increase the availability of starter homes in the market. Despite the desire for homeownership, a BMO Financial survey indicates that 71% of Americans are postponing their home-buying plans, primarily due to high mortgage rates. Furthermore, 43% of respondents cited rising home insurance costs as a significant barrier to purchasing or maintaining a home. Homeowner insurance premiums have surged by 55% over the past four years, driven by increasing losses and insurers' efforts to recover costs. Market analysts predict that volatility in the housing and insurance markets will persist into 2024, complicating the home-buying landscape. Consumers are encouraged to shop around for the best mortgage and insurance rates to navigate these challenges effectively.