As we approach the 2024 election, many in the real estate market wonder how the political climate and recent Federal Reserve decisions will impact the housing landscape. Historically, the real estate market experiences some shifts during election years, often due to temporary uncertainty rather than long-term trends. Political outcomes can shape specific housing policies and economic conditions, such as tax reforms or homeownership assistance programs. Still, broader economic factors—like interest rates and housing supply—typically play a more significant role in market behavior.
Data reveals that election years don’t necessarily reduce home values or slow sales. In fact, home prices have often risen slightly more during election years. Between 1987 and 2023, home values grew by an average of 4.84% in election years, compared to 4.44% in non-election years. This suggests that while elections create a short-term pause, buyers and sellers generally resume activity, and the market continues its trajectory after November. Certain buyers, such as luxury homeowners, may exercise extra caution this year, but the overall market isn’t expected to undergo drastic changes based solely on the election outcome.