Majority of respondents demand government-subsidized down-payment assistance
As the United States grapples with housing affordability, homebuyers and sellers have shown increased support for policies designed to keep homes affordable and those that strengthen home values.
Redfin’s latest report revealed that 34% of the respondents were more likely to support policies that help prospective buyers struggling to afford a home over policies that benefit existing homeowners or investors and home-flippers. Just 19% preferred policies meant to strengthen home values, while 37% said they support both types of policies.
Redfin surveyed over 3,000 US residents who bought or sold a primary residence in 2018 or plan to in the next 12 months.
The report also showed that 46% of respondents felt the impact of rising home prices over the last decade, saying that it made their life worse. Only 16% said that increased prices made their life better, particularly homeowners who have collectively earned $203 billion in home equity after buying at the bottom of the market in 2012.
When asked whether the government should or should not provide down-payment assistance to working-class families buying their first home, 63% said they believe the government should do so. A majority (76%) of African American respondents called for the government-backed down-payment assistance, which was the highest of any racial group.
Presidential candidates Elizabeth Warren and Kamala Harris have laid out policy proposals 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 are minority areas where residents are usually denied mortgage loans.
Lastly, 33% of respondents supported policies designed to limit investors’ ability to buy homes to flip or rent out.
