Housing costs could sway swing state voters, report warns

Swing states are now spending almost twice as much on housing as they were before the 2020 presidential election—and that could sway their votes in November's election.

The Arizona, Georgia, Michigan, Nevada, North Carolina, Pennsylvania, and Wisconsin states are key battlegrounds in determining whether Joe Biden or Donald Trump returns to the Oval Office.

And according to Redfin data, accros all these seven states, typical mortgage payments are now 92% higher than four years ago—accelerating to a record high of $2,161 a month.

Costs in states that traditionally lean Democrat and Republican are also at an all-time high, accelerating to $3,311 and $2,066, respectively.

The cost of living, especially housing affordabolity, remains at the forefront of voters' minds, with Biden facing criticism for his economic policy.

In a worrisome milestone, median-priced homes in swing states are now deemed to be unaffordable for the average household earning a typical income of $79,155.

With the median home priced at $316,063, a household has to spend 32.8% of their earnings—above the 30% threshold—to cover mortgage payments alone. That figure stood at just 21.8% in 2020.

Redfin's research underlines how homeownership is becoming increasingly out of reach for many Americans.

Earnings of $45,150 would have been enough for a family to afford a median-priced home before Biden's win four years ago, but now, they'd need $86,421.

A key election issue

Back in February, a Redfin poll had revealed that more than 90% of Gen Z voters said the affordability of housing would influence how they voted in November's election.

Redfin senior economist Elijah de la Campa says many young Americans feel they'll be unable to achieve the same level of financial success as their parents.

"While swing states have historically had lower housing costs than blue states—and most still do—markets in swing states have not been immune to the affordability crunch the country has been facing for the last several years," he said.

"The inability to afford a home is making a lot of voters feel bad about the economy and their financial prospects."

Both Biden and Trump have been putting forward new housing policies in an attempt to woo voters, with each vowing to keep the "American Dream alive."

The Democrats are pushing for a 5% cap on rent increases and an aggressive rise in the construction of affordable homes.

Meanwhile, a platform released by the Republicans states, suggests that Trump's plan would revolve around lowering mortgage rates and increasing housing supply.

"To help new home buyers, Republicans will reduce mortgage rates by slashing inflation, open limited portions of Federal Lands to allow for new home construction, promote homeownership through Tax Incentives and support for first-time buyers, and cut unnecessary Regulations that raise housing costs," the document states.