Housing Crisis Could Sway Gen Z Voters — Affordable Homes Become Election Hot Button

Housing will be a critical factor for 91% of Gen Z adults when deciding who to vote for in this year's presidential election.

Affordable housing is in high demand, but the supply is low, and incentives for housing developers to prioritize affordable housing over high-end residences are minimal. The rising cost of rent is forcing many Americans into long-term renting, making it nearly impossible to save for a down payment or establish a significant financial safety net.

"We are having an affordable housing crisis where there is a lack of diverse housing options, where young people are struggling to find affordable options to both rent and buy, and that will affect young voters' sense of hope in their future," said Paul Bernard, president and CEO of Affordable Homes & Communities, a nonprofit affordable housing developer.

Don't Miss:

• If there was a new fund backed by Jeff Bezos offering a 7-9% target yield with monthly dividends would you invest in it?
• Warren Buffett once said, "If you don't find a way to make money while you sleep, you will work until you die." These high-yield real estate notes that pay 7.5% – 9% make earning passive income easier than ever.

Bernard, also an adjunct professor of urban and regional planning at Georgetown University, described housing as a "party-agnostic" issue, noting that neither President Joe Biden nor his opponent Donald Trump has a perfect solution. However, he emphasized that young voters prioritize eventual homeownership, necessitating future policies that support starter homes and various housing types.

"In this country, we need to think about housing supply as economic development infrastructure, ensuring adequate housing supply at every income level, as opposed to thinking about housing as only a private good that can be solved in the private market," Bernard stated. 

Bernard proposes that policymakers facilitate affordable housing development on unused or obsolete federal land and increase subsidies for affordable housing construction and preservation.

Trending: The average American couple has saved this much money for retirement — How do you compare?

"We should be increasing low-income housing tax credits, loosening restrictions to fund more affordable units and ultimately doing everything we can to boost supply across all income levels," Bernard added.

"While there are valid reasons for people to rent, they miss out on the ability to build equity that comes with homeownership," noted Eunjee Kwon, assistant professor of real estate at the University of Cincinnati's Lindner College of Business.

"Homeownership is important because rent payments do not build equity, and there is always the potential for rent increases, making renting less affordable over time," Kwon explained. "Renters also face less stability due to eviction or nonrenewal risks, especially in major U.S. cities."

Keep Reading:

• Private credit offers up to 20% APY to potential accredited investors looking to capitalize on this growing asset class.
• Miami is expected to take New York's place as the U.S. Financial Capital. Here's how you can invest in the city with as little as $500 before that happens.