4

Over the last year, the Federal Reserve has propping up the already historically high housing market by purchasing/backing trillions of dollars of mortgages, preventing a decline in house prices like in 2008.

This seems to be a largely bipartisan thing, with lots of support (even if only implicitly).

I'm not so much interested in debating the merits themselves, but rather understanding the political alignment.

Are there any U.S. politicians that vocally advocate for housing market costs going down instead of keeping them where they currently are?

5
4

For reasons explained in this blog you'd expect at best politicians aligned with renters and/or the youngest generations to say such things and even then they have to take into account the superior voting power of older generations who mostly own property. There seems to be a (historical, at least) correlation between politicians' positions on such matters and the percentage of people who own houses.

Consequently, the measures proposed will usually not say explicitly they want to drive down property values, but instead propose rent controls etc. In the US, politicians from the leftist wing of the Democratic party have made such proposals, e.g. Alexandria Ocasio-Cortez and Bernie Sanders have made such rent-control proposals at a national level.

On the other hand, studies on the effects of de-control have shown a greater increase in property values in de-controlled areas. So it is implicit that price controls will at least limit the rise in value of property prices.

In general, it seems based on surveys that both Republicans and Democrats would favor an increase in housing supply (and depending how much that supply increase is, it could limit or even drive down prices). But when it comes to specifics, e.g. building duplexes in the suburbs, such measures have been defeated on a broad bipatisan basis as well (and decried as "war on the suburbs"). Everyone wants an increase in supply, but mostly not "in their back yard".

1
  • 4
    It certainly does follow that rent-controlled property is worth less. – Paul Draper Jan 25 at 14:07

You must log in to answer this question.

Not the answer you're looking for? Browse other questions tagged .