Election Impact on Homebuying: 2024 Presidential Race is Shaping Real Estate

Election Impact on Homebuying - The Home Atlas

As the 2024 election draws near, many prospective homebuyers are carefully considering how the political outcome could influence their decision to purchase a home. According to a recent Redfin survey, nearly a quarter of first-time homebuyers are holding off on buying until after the election, making the election impact on homebuying a significant factor in today’s real estate market.

Election Impact on Homebuying - The Home Atlas
Waiting to buy a home? The 2024 election impact on homebuying has many first-time buyers holding off. Explore the reasons behind this growing trend.

2024 Election Impact on Homebuying

Why Are Buyers Waiting?

The survey, conducted in September 2024, revealed that 23% of likely first-time homebuyers are delaying their purchase until the election results are clear. This delay is fueled by uncertainty about economic and housing policies, particularly those proposed by the leading candidates. Kamala Harris’ plan to provide $25,000 in down payment assistance is a key factor for 26.1% of respondents, while 15.9% are waiting to see if Donald Trump’s housing affordability plans will take effect.

Beyond candidate policies, personal finances play a critical role. The survey noted that 30.3% of respondents feel they are on track to buy a home within the next year but prefer to wait for better timing. For others, waiting allows them more flexibility with family or partner decisions. The election impact on homebuying is also driven by concerns over the broader economy, interest rate cuts, and potential affordable housing initiatives that may emerge depending on who takes office.

Election Impact on Homebuying - The Home Atlas
23% of first-time homebuyers are delaying their purchase due to uncertainty over economic and housing policies from the 2024 election candidates, personal finances, and potential interest rate cuts.

How Economic Factors and Policies Influence Buyers

Uncertainty around interest rates is another key factor for those delaying their home purchase. With 18.3% of respondents waiting for the Federal Reserve to cut rates further, the economic environment remains top of mind. Additionally, many are hopeful that new affordable housing initiatives will come from either the federal or local government, influencing nearly 23.6% of buyers to wait and see.

The election impact on homebuying also intersects with immigration policies. Approximately 12.2% of first-time homebuyers are immigrants or visa holders concerned about their long-term status in the U.S. if immigration policies shift after the election.

Election Impact on Homebuying - The Home Atlas
Economic uncertainty, interest rate cuts, and potential housing and immigration policy changes are causing many buyers, including 18.3% waiting for lower rates and 12.2% concerned about immigration, to delay their home purchase decisions.

What Experts Say

Real estate professionals have weighed in on the cautious attitude many buyers are taking as the election approaches. Lindsay Garcia, a Redfin premier agent, emphasized the cyclical nature of the market, stating that many buyers will regain confidence after the election. “Buying a home can be scary, especially if it’s your first time, and you’re worried about the election,” she explained. “But the market will improve, and once we get past the election, buyers will start to feel more secure in their decision-making.”

See Also
25 Best Cities to Buy a Home Under $500K - The Home Atlas

This sentiment reflects the overall market slowdown. According to the Redfin report, just 2.5% of U.S. homes changed hands in the first eight months of 2024—the lowest turnover rate in decades. Even as mortgage rates began to fall over the summer, the sluggish market has left many potential buyers on the sidelines, waiting for the election impact on homebuying to play out.

Election Impact on Homebuying - The Home Atlas
Experts believe that many first-time buyers are hesitant due to election uncertainty but expect confidence to return and the housing market to improve after the election.

The Road Ahead for Homebuyers

With political uncertainty driving much of the delay, it’s clear that the 2024 election will have a lasting effect on the real estate market. Policies related to housing affordability, interest rates, and immigration are at the forefront of many buyers’ minds. While the current election season has introduced hesitation, experts predict that the market will pick up once the political landscape stabilizes, and buyers feel more confident moving forward with their purchases.

The election impact on homebuying is undeniable, with a significant portion of first-time buyers waiting for clarity on policy changes and economic stability. As the election approaches, the real estate market will likely remain cautious, but post-election, we can expect renewed buyer activity as confidence in housing policy solidifies.