Can the 2020 Elections Affect the Housing Market?
When election season ramps up, many homebuyers start asking the same question: “Will the election affect the housing market?” There’s no crystal ball that can predict exactly what will happen, but history does give us a few clues. At Ernest Homes, we keep an eye on these trends so our buyers can feel confident about moving forward with their new home in the Savannah, GA area.
The “Wait and See” Effect
One of the most common election year trends is a “wait and see” attitude. Some buyers pause their home search until after the ballots are counted because they want to see how policies, taxes and the overall economy might shift. Builders and sellers can react the same way, delaying projects or listing decisions until they feel more certain about what’s ahead.
That pause can temporarily slow the number of homes going under contract, even when overall demand for housing is still strong. Once the election is over and there’s more clarity, many of those sidelined buyers re-enter the market quickly.
Income, Home Prices and Affordability
Another factor to watch isn’t unique to election years, but it matters just the same: the gap between local incomes and local home prices. When home prices rise faster than wages, affordability gets squeezed and buyers may feel less confident about making a move. If the economy weakens or job growth slows, that gap can widen even more.
Election campaigns often spotlight issues like jobs, wages and the cost of living. Buyers naturally pay attention to which proposals they believe will support steady income growth, because that stability makes a long-term investment in a new home feel more comfortable.
Home Prices in an Election Year
Historically, home prices almost always trend upward over time, and that generally remains true in election years. However, some studies suggest that the pace of price growth can be a bit slower during an election year as both buyers and sellers take a more cautious approach.
For buyers, this can be good news. If you find the right home during an election year, you may still benefit from rising values over the long term while facing slightly less competition than in a typical year.
Taxes, Policies and Your Budget
Federal tax laws and housing-related policies can have a real impact on your monthly budget and overall buying power. Changes to deductions, credits or interest-rate policy may influence how attractive homeownership feels for some families.
Because each administration may have a different view on taxes and regulations, some buyers prefer to understand the new rules before they buy. Others look at their current situation and decide that the home they love and the payment they can comfortably afford right now matter more than potential future changes.
Consumer Confidence and the Economy
Housing decisions are closely tied to consumer confidence. When the economy feels strong, unemployment is low and people feel secure in their jobs, they are more likely to purchase a new home. When headlines are filled with uncertainty, some buyers step back temporarily, even if their personal finances are stable.
Election years naturally come with a lot of noise and big predictions from all sides. Focusing on your own job stability, savings and long-term plans is often more helpful than trying to time the market based on short-term news cycles.
Millennials and First-Time Buyers
Millennials now make up a large share of homebuyers, especially first-time buyers. Many are getting married, starting families and looking for more space. During an election year, this group can influence both the housing market and the election itself simply because of their numbers.
As more Millennials move from renting to owning, demand for affordable, energy-efficient new homes—like the ones Ernest Homes builds in Savannah, Richmond Hill and the surrounding communities—continues to grow, election year or not.
Should You Buy a Home During an Election Year?
There’s no one-size-fits-all answer, but a few questions can help you decide:
- Is your income stable, and do you feel secure in your job?
- Do current interest rates and monthly payments fit comfortably within your budget?
- Have you found a home and a neighborhood that are a great long-term fit for your family?
- Would waiting actually improve your situation, or just delay your plans?
If you can confidently answer “yes” to most of these, an election year can still be an excellent time to build or buy a new home.
Explore New Homes in the Savannah Area
At Ernest Homes, we focus on what we can control—building high-quality, thoughtfully designed homes in welcoming communities throughout the greater Savannah, GA area. Whether you’re a first-time buyer or moving up to your forever home, our team is here to help you navigate the process with clarity and confidence in any market cycle.
Ready to start your home search? Browse our current selection of available homes, explore our new home communities, or contact our sales team to schedule a personal tour. Election year or not, we’ll help you find the right place to call home.
