In this article, we lean on expert opinions and dive into what the midterms could mean for your housing situation. Here\u2019s an in-depth look at how the midterm elections could affect home buyers, sellers, renters, and owners now and in the years to come.<\/p>\n\n\n\n\n\n
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\n <\/div>\n \n How Much Is Your Home Worth Now?<\/h3>\n
As you look ahead and plan your next move, you can get a near-instant real estate house price estimate from HomeLight for free. Our tool analyzes the records of recently sold homes near you, your home’s last sale price, and other market trends to provide a preliminary range of value in under two minutes.<\/p>\n \n
How the midterm elections could influence real estate, nationwide<\/h2>\n
Although a few races are still up in the air, the national midterm election picture is crystallizing. No matter how state runoffs conclude, one political theme is emerging: power will be divided.<\/p>\n
We know Republicans will control the House in 2023 \u2014 and will likely stand at odds against many of the Democratically-led executive branch\u2019s proposals. At the same time, the Senate\u2019s final makeup will come down to a Georgia runoff<\/a>. But because they control a Senate tie-breaker vote in the Senate, Democrats will hold a razor-thin margin in that chamber regardless of the Georgia outcome.<\/p>\n So, what does the new balance of power on the national scene mean for housing? Here are a few ways the new political landscape could impact your housing situation:<\/p>\n The 2022 midterm elections have split an already divided government even further. And that could mean any major national housing policies that were forming prior to the election will dissolve, or at least run into snags.<\/p>\n One of the housing policies that\u2019s received some of the most attention recently is the First-Time Homebuyer Act<\/a>. First proposed in 2021, this piece of legislation would have shifted the tax code to give first-time homebuyers<\/a> up to $15,000 in federal tax credits. However, the policy still requires approval from lawmakers, and it\u2019s unlikely to be passed under a divided congress.<\/p>\n Thomas says home sellers, buyers, and owners should expect a similar pattern of sluggish dealmaking with other housing legislation in the near future.<\/p>\n \u201cIn a divided Congress, it\u2019s going to be harder to get priorities that Democrats want to get through, through,\u201d says Thomas. \u201cAnything they want to do will need to be bipartisan. That\u2019s going to limit the speed and the size of what they can do.\u201d<\/p>\n Still, if you\u2019re worried the new political landscape will change your home buying or selling plans, Thomas says not to fret too much. He explains that national politicians tend to have limited influence over housing markets.<\/p>\n \u201cIn terms of the real estate market and housing, I think the impact of the federal government is relatively limited,\u201d he says. \u201cA lot of housing legislation gets passed at the state level and the local level.\u201d<\/p>\n Since the last midterm election cycle in 2018, housing prices<\/a> have taken a wild ride. The median home price in November of 2018 sat at $253,382, according to DQYDJ historical housing data<\/a>. That price climbed $135,201 higher by January of 2022. Since then, prices for the median home have dipped by around 1.7% nationwide \u2013 with prices in some areas dropping<\/a> by as much as 10% since June.<\/p>\n Now, Leyba says splitting government power could calm down a housing market that\u2019s moved frantically in recent years.<\/p>\n \u201cThe midterm elections could create more stability on pricing, so we should see the market even out,\u201d says Leyba. \u201cIf we do, for homeowners that planned to sell high, increasing prices may not be [an option].\u201d<\/p>\n If prices find stable footing, it could end up emboldening new homebuyers who have felt intimidated by volatile prices. However, for sellers, it may also mean you\u2019ll need to readjust your pricing expectations<\/a> in some housing markets.<\/p>\n To get a ballpark estimate of what your home might be worth now, try HomeLight\u2019s Home Value Estimator<\/a>. Our online tool uses information from multiple sources to provide a real-time preliminary home value estimate based on current market trends.<\/p>\n Overall, divided national power will likely mean new economic moves will be slow, delayed, or cautiously passed with bipartisan support. Which means, at least in the short term, people who are frustrated with the economy may feel like they\u2019re screaming into the abyss.<\/p>\n However, that doesn\u2019t necessarily mean there\u2019s no economic relief in sight for households that are struggling. Thomas says he believes the economy relies much more on the Federal Reserve<\/a> than on anything legislators will do.<\/p>\n \u201cI think the Fed\u2019s going to operate independently and do what\u2019s necessary to get inflation under control,\u201d he says.<\/p>\n Nash adds that the new political makeup could also help leaders settle on housing and economic policies that are more effective.<\/p>\n \u201cNo, the midterms will not impact home sales prices,\u201d she explains. \u201cThe inflation and looming recession will do that. A \u2018house divided\u2019 is actually a welcoming sight for most right now so that the individual chambers can really focus on what’s good for all, and not just for some.\u201d<\/p>\n Regardless of 2022 changes on the national scene, Dr. Longhofer says the most meaningful results of the midterm election for people interested in housing will be felt at the state and local levels.<\/p>\n \u201cOne thing that\u2019s really important with housing markets, in general, is to recognize that there\u2019s no such thing as the \u2018national housing market,\u2019\u201d he explains. \u201cNobody owns the \u2018average U.S. home.\u2019 Everybody owns a home that\u2019s in a particular city, it\u2019s in a neighborhood within that city, and even in a particular location within that neighborhood.\u201d<\/p>\n He says those micro-markets, and new measures passed within them, tend to influence a home buyer\u2019s, seller\u2019s, and owner\u2019s life much more directly than national policy. And even as the national electorate seems set up to stall, voters across the nation are passing local housing proposals that may reshape your housing reality. Here\u2019s how the 2022 midterm elections could influence local housing options:<\/p>\n Several local ballots held bond measures aimed at freeing up more low-income housing or reducing housing costs. Here are a few local markets that approved these types of moves:<\/p>\n In the city of Austin, voters approved<\/a> a bond measure that set aside $350 million to help low-income homeowners with home repairs and for the city to develop more low-income housing.<\/p>\n State voters pushed through multiple bond packages to add, develop, or upgrade affordable housing. That includes a $40 million measure in Buncombe County<\/a> and $226 million in bond funds in Charlotte<\/a>.<\/p>\n The citizens of Columbus approved bond funding<\/a> to build more affordable housing facilities and to preserve affordable units within some areas where prices have risen. The move sets aside $200 million in bonds for the project.<\/p>\n Voters in several of the Golden State\u2019s cities approved projects meant to promote more affordable housing. Here\u2019s a list of a few cities where funds for low-cost housing passed, according to KQED<\/a>:<\/p>\n Voters in San Francisco did not pass Propositions D or E<\/a>, local competing ballot measures that supporters said would have streamlined the process of building affordable housing.<\/p>\n Following the midterms, you may be asked to pay extra when your home sits unoccupied in some cities. For instance, citizens in Berkeley and San Francisco voted to tax property owners<\/a> who leave their homes or apartments intentionally unoccupied for longer than six months.<\/p>\n The midterm elections saw a number of efforts to increase housing opportunities. While some measures failed, others passed. For example, voters in San Diego narrowly passed ballot measure C<\/a>, which excludes the 1,324-acre Midway-Pacific Highway Community Plan<\/a> area from an existing 30-foot height limit on buildings. The measure may open up additional housing projects that can also help revitalize some plan-area neighborhoods.<\/p>\n With inflation heating up the housing market<\/a>, rent hit record highs<\/a> in recent months. In response, voters in several cities cast ballots to cap rent prices. According to an Associated Press report, three cities passed measures<\/a> to stop rent from rising above inflation:<\/p>\n Additionally, Orange County in Florida voted to stabilize rent<\/a> in the local area, but that piece of legislation is being challenged in the courts. And Thomas says that even though the Orange County measure may not stand after it runs through the court system, the vote signals how high costs are cranking up pressure on local politicians to help lower rent.<\/p>\n \u201cYou get a ballot initiative like that and realize these places aren\u2019t immune to regulatory risk,\u201d he explains.\u201cI think it suggests no market is immune to that type of pressure.\u201d<\/p>\n Wondering what the 2022 Midterm Elections will mean for your unique housing situation? Experts suggest it will depend heavily on your local housing market<\/a>, moves by the Federal Reserve<\/a>, and broader economic conditions \u2014 all things federal politicians hold limited control over.<\/p>\n However, momentum seems to be growing for affordable housing and low-rent options on the local level. That could mean renters and homeowners may catch more breaks in the future.<\/p>\n For buyers and sellers, the future hinges largely on individual markets, inflation, and recession possibilities<\/a>. But a handcuffed Congress could settle down housing markets and boost consumer confidence. It may also force lawmakers to come up with more sound solutions.<\/p>\n In the end, a torn government could also end up adding stability to the housing market \u2014 painting a more inviting scene for first-time homebuyers or skittish investors. Still, if you\u2019re worried election results may foil your plans to buy a home, Dr. Longhofer suggests looking at your individual situation and needs rather than trying to time the market.<\/p>\n \u201cWhether or not it\u2019s a good time to buy a house depends on you more than the market,\u201d he says. \u201cIf it\u2019s a good time for you, any time can be a good time to buy a house.\u201d<\/p>\nNew national housing policies could sputter<\/h2>\n
Housing prices may settle on more solid ground<\/h2>\n
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No, the midterms will not impact home sales prices. The inflation and looming recession will do that. A \u2018house divided\u2019 is actually a welcoming sight for most right now so that the individual chambers can really focus on what’s good for all, and not just for some.<\/q>\n
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New economic legislation could stall<\/h2>\n
What do state-level elections mean for local housing markets?<\/h2>\n
Houses may become more affordable in some cities<\/h3>\n
Texas<\/h4>\n
North Carolina<\/h4>\n
Ohio<\/h4>\n
California<\/h4>\n
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Empty homes could incur extra fees<\/h3>\n
More housing opportunities in some areas<\/h3>\n
Rent relief could be in sight<\/h3>\n
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What will the midterms mean for you?<\/h2>\n