Redfin Survey: Homebuyers And Sellers Say Rising Home Prices Have Made Their Lives Worse, And They Support Policies To Make Homes More Affordable
SEATTLE, Oct. 22, 2019 /PRNewswire/ -- (NASDAQ: RDFN) -- Homebuyers and sellers are nearly twice as likely to support policies designed to keep homes affordable as they are to support policies designed to strengthen home values, according to a new report from Redfin (www.redfin.com), the technology-powered real estate brokerage. The report's findings are based on a June Redfin-commissioned survey of more than 3,000 U.S. residents who bought or sold a primary residence in the last year, or plan to in the next 12 months.
As cities across the country grapple with an ongoing housing affordability crisis, solutions in the form of policy proposals have become a topic of local and national debate, with presidential candidates and community and business leaders on both sides of the political aisle weighing in. In general, homebuyers and sellers support policies that help would-be homebuyers struggling to afford a home over policies that benefit existing homeowners or investors and home-flippers.
- Respondents are nearly twice as likely to support policies designed to keep homes affordable as they were to support policies designed to strengthen home values.
- Nearly half of respondents said rising home prices over the past decade have made their life worse, while just 16% said rising home prices made their life better.
- 63% of respondents believe the government should provide down payment assistance to working-class families buying their first home.
- Respondents were more likely to support policies designed to limit investors' ability to buy homes to flip or rent out.
Buyers and sellers value home affordability
When asked about policies meant to lift up home values or keep homes affordable, 34 percent of respondents said they support policies designed to keep homes affordable, compared with 19 percent who prefer policies meant to strengthen home values. Thirty-seven percent said they support both types of policies, reflecting the moral dilemma this topic can present to homeowners who are financially motivated to grow their often biggest asset, but also care about the continued affordability and livability of the community in which they have invested.
Rising home prices negatively affecting homebuyers and sellers
Redfin asked respondents how each of a handful of changes to the economy over the last decade have affected their life. Nearly half (46 percent) said rising home prices made their life worse, compared to just 16 percent who said that rising home prices made their life better. Homeowners who bought at the bottom of the market in 2012 have collectively earned $203 billion in home equity. However, first-time homebuyers struggle to afford homes at current-day prices.
Down payment assistance has broad support
When asked whether the government should or should not provide down payment assistance to working-class families buying their first home, the majority of respondents (63 percent) said they believe the government should provide down payment assistance.
Seventy-six percent of African Americans respondents said that the government should provide down payment assistance, which was the highest percentage of any racial group. Presidential candidates Elizabeth Warren and Kamala Harris have policies that increase government aid going to down payment assistance for first-time homebuyers in historically red-lined neighborhoods to boost African American homeownership. Redlined neighborhoods were minority neighborhoods that were historically denied mortgage loans.
Some buyers and sellers want to put limits on investors
Redfin asked respondents whether they would support policies that limit investors' ability to buy homes to flip or rent out or if they would support policies that make it easier for investors to buy homes to flip or rent out. Respondents preferred policies that limit investors. Thirty-three percent of respondents said they support policies that limit investors' ability to buy homes to flip or rent out compared to only 25 percent of respondents who said they support policies designed to make it easier for investors to buy homes to flip or rent out.
To read the full report, including graphs and survey methodology, please visit: https://www.redfin.com/blog/Support-For-Keeping-Homes-Affordable.
Redfin (www.redfin.com) is a technology-powered real estate brokerage, combining its own full-service agents with modern technology to redefine real estate in the consumer's favor. Founded by software engineers, Redfin has the country's #1 brokerage website and offers a host of online tools to consumers, including the Redfin Estimate, the automated home-value estimate with the industry's lowest published error rate for listed homes. Homebuyers and sellers enjoy a full-service, technology-powered experience from Redfin real estate agents, while saving thousands in commissions. Redfin serves more than 85 major metro areas across the U.S. and Canada. The company has closed more than $85 billion in home sales.
For more information or to contact a local Redfin real estate agent, visit www.redfin.com. To learn about housing market trends and download data, visit the Redfin Data Center. To be added to Redfin's press release distribution list, subscribe here. To view Redfin's press center, click here.
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Released October 22, 2019