Housing Affordability Becomes a Defining Test After Midterm Elections
Voters across the country sent a clear message during the elections: life is simply too expensive. At the center of that economic frustration sits the single largest monthly expense for most American households. As lawmakers prepare to take office, the pressure to tackle housing affordability has escalated from a local headache into an unavoidable national test.
NPR reported on the political fallout following the elections, noting that housing costs remain a central challenge for families attempting to balance their budgets. While candidates from all over the country campaigned on making housing more affordable, the structural barriers in the real estate market will not vanish overnight.
Housing Shortage Stems from the 2008 Market Crash
The roots of the current inventory crisis stretch back far beyond the recent price spikes seen during the COVID-19 pandemic. According to reporting from NPR, the underlying housing shortage traces directly to the 2008 housing crash. For at least a decade following that, the United States simply did not build enough housing to meet demand.
That helped drive up both rents and home prices, and now there is a real shortage of housing people can afford, especially low- and moderate-income families. Constructing new inventory and expanding supply takes years of sustained development, meaning relief will not arrive immediately.
Federal Funding Remains Critical for Local Housing Programs
While federal lawmakers face strict limits on what Congress can accomplish directly, housing policy experts note a rare glimmer of bipartisan agreement. Cities and states hold primary authority over local zoning laws and land-use regulations, yet federal action remains critical for funding.
“All the cool things that got put into that bill had money attached to it,” said Andy Winkler at the Bipartisan Policy Center. “So it is up to the next Congress to make sure that those programs, if we want them to be impactful for cities and states – to actually provide the money attached to them that they need.”
Earlier this year, Congress managed to pass a sweeping housing package containing dozens of provisions designed to boost supply and lower costs over time. Winkler points out that lawmakers in various cities and states have increasingly loosened zoning rules in recent years to create smaller, cheaper housing. The recent elections have only amplified the pressure to act.
A Squeezed Market for First-Time Buyers
For individuals attempting to break into homeownership right now, the housing market is exceptionally unforgiving. A national housing slump has softened prices in select regions, but overall costs remain much more expensive than they used to be.
Data from the National Association of Realtors shows that the share of first-time homebuyers stands at a near record low of just 22% in the past year—about half of what it used to be. Even more striking is the emergence of all-cash buyers.
One in 10 first-time buyers paid all cash over the past year. Real estate professionals note that such a trend was not seen for the first 15 years in the field, but it has become more common as the market has grown so competitive.
Much of that cash stems from generational wealth and inheritances, a demographic trend expected to grow because boomers are now entering their 80s. Jessica Lautz, deputy chief economist at the Realtors Association, explained that the median age for a first-time homebuyer paying all cash was 54, indicating that buyers are waiting a long time for that generational wealth or leaning on established retirement accounts.
“So we’re seeing a wealthier first-time homebuyer overall, someone who has a 401(k) or can tap that 401(k) or has stocks or even cryptocurrency to allow them into homeownership,” Lautz told NPR.
This reliance on accumulated wealth or familial assistance leaves younger workers and families without substantial portfolios or inheritances locked out of the market entirely. Meanwhile, empty nesters who might otherwise downsize find themselves trapped by high mortgage rates and high prices, creating a ripple effect in the market.
