Election Jitters: Why First-Time Homebuyers Are Playing the Waiting Game

Homebuying, especially for the first-timers, can be daunting. Now, with the upcoming election, many prospective buyers are experiencing additional anxiety. According to Redfin’s latest survey, 23% of buyers are putting their home purchase plans on pause, hoping the next president will introduce favorable housing policies. The uncertainty surrounding the economy and the election has created hesitation, leaving buyers to question whether they should act now or wait for better conditions post-election.

Election Uncertainty Impacting Homebuyers

Redfin, in collaboration with Ipsos, surveyed 1,802 homeowners and renters. Among those who plan to buy their first home in the next year, almost a quarter have chosen to delay their plans until after Election Day. Lindsay Garcia, a Redfin agent, describes these jitters:

“Buying a home can be scary, especially if it’s your first time; you’re worried about the election, and you’re not sure if the economy is going to get better or worse.”

Waiting for clarity post-election isn’t uncommon, as buyers hope for favorable policies that could significantly impact affordability and mortgage access.

Harris vs. Trump: Housing Plans at a Glance

Among those who have postponed buying, Vice President Kamala Harris' housing policies have drawn the most interest. A sizable 26.1% of these respondents hope to benefit from:

• $25,000 in down payment assistance for first-time homebuyers
• $10,000 mortgage relief tax credits
• Reduced closing costs through pilot programs

Meanwhile, Donald Trump’s housing platform, which includes plans to:

• Reduce building regulations to increase housing inventory
• Ban undocumented immigrants from mortgage eligibility to open more access for U.S. citizens
• Provide tax incentives for new homebuyers

While fewer respondents (15.9%) are holding out for Trump’s policies, his promises around housing deregulation and incentives have sparked some buyer interest.

First-time homebuyers in Limbo

Interestingly, even across party lines, Harris' housing plans seem to resonate more. Of those holding out for her policies, 32.7% are Harris voters, but 21.6% are Trump voters. In contrast, 25% of buyers hoping for Trump’s housing reforms support him, while 11.5% are Harris voters.

This bipartisan crossover suggests that affordable housing solutions matter more than political loyalty for many buyers. With the economy and housing prices in flux, first-time homebuyers are navigating both political preferences and practical concerns.

Beyond the Election: Other Buyer Concerns

Beyond election anxieties, the survey found that other factors influencing homebuyers' decisions include:

• Interest rates (18.3%)
• State and city-level affordable housing programs (23.6%)
• Access to government-backed housing assistance (12%)
• Non-profit housing aid (8.8%)

These concerns highlight the importance of long-term stability and affordability over short-term political outcomes.

Bottomline

While election uncertainty keeps some buyers on the sidelines, it’s important to remember that the housing market is cyclical. As Lindsay Garcia aptly puts it,

“The economy will keep improving, and when we get past the election, buyers will start to feel more confident again.”

Whether you're looking to buy soon or after the election, the best time to buy is when you’re financially ready. If you’ve been waiting for the right time to buy or sell in Southern California, let’s connect and explore your opportunities today!

Reference: McPherson, Marian. "Election anxiety is keeping first-time homebuyers at bay: Redfin." October 15, 2024.