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Is There a Connection Between Political Party and Housing Market Activity?

Government + Policy

Is There a Connection Between Political Party and Housing Market Activity?

September 18, 2020
Home with U.S. flag out front
By Susan Vineyard

To see if there are connections between political party and housing market activity, Redfin categorized US counties as blue, red, or swing then compared. For the four week period ending September 6, home prices in blue counties increased by 13.1%, prices in swing counties went up 11.5%, and red counties saw a 10.6% jump year over year. Blue counties, Redfin explains, are usually pricier urban areas in both red and blue states. Red counties are more affordable and rural. Swing states, interestingly, are largely made up of the suburbs.

“Homeowners in counties of all colors—blue, red and purple—are benefiting from a strong housing market even during this deep recession,” said Redfin chief economist Daryl Fairweather. “Home values are up, which is all great financial news if you’re a homeowner, regardless of your politics.” 

“But rising prices and tight supply mean it’s a tough landscape for first-time homebuyers,” Fairweather continued. “Many of them have long been priced out of urban blue counties and are searching in suburban swing counties and more rural areas. This trend is being exacerbated by the pandemic-driven work-from-home culture, which is causing many homebuyers to place more emphasis on indoor and outdoor space and less on commute times.” 

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