Survey: Buyers, Sellers Say Rising Home Prices Have ‘Made Their Lives Worse,’ Want Policy Changes

Home buyers 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, Seattle.

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.

The survey comes as cities face ongoing housing affordability challenges. Policy proposals have become a topic of local and national debate, with presidential candidates and community and business leaders weighing in.

(The Mortgage Bankers Association in June launched a strategic initiative to help develop stronger and more effective affordable housing partnerships in both the policy and business arenas, led by Steve O’Connor, Senior Vice President for Affordable Housing Initiatives.)

The survey found in general, home buyers 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.

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 to 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.

Redfin asked respondents how each of a handful of changes to the economy over the past 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. 

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.

Redfin also 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.

The report can be accessed at https://www.redfin.com/blog/Support-For-Keeping-Homes-Affordable.