How ‘Affordability’ Became Politicians’ Biggest Challenge: The Unstoppable Voter Anger Driving Elections

What’s the buzzword on everyone’s lips? It’s “affordability.” Politicians are discovering that this term resonates deeply, especially as they prepare for future elections. Affordability was a key theme in recent victories for candidates like progressive Zohran Mamdani in New York and centrists like Abigail Spanberger in Virginia. Even newcomer Katie Wilson surprised many by winning Seattle’s mayoral race, all thanks to this focus on affordability.

However, affordability isn’t as clear-cut as it sounds. Paul Donovan, an economist at UBS, warns that it can be quite subjective. Politicians love to use it to connect with voters, but this often leads to confusing promises based on social media narratives rather than solid data. For example, while inflation rates might suggest that things are getting better, people’s day-to-day experiences can tell a different story.

Social media plays a huge role in shaping perceptions. Idealized lifestyles can create feelings of resentment when people can’t afford the things they see. Donovan explains that affordability often reflects individual aspirations. “People want better things but feel frustrated by the gap between their desires and reality,” he says.

In recent years, while some data suggests inflation has cooled, the emotional weight of affordability lingers. It’s not just about a general rise in prices; it often targets big expenses, like housing. Sean Dobson, CEO of Amherst Group, notes that the Federal Reserve’s measures of inflation might not reflect what many people actually feel. For example, a stable inflation rate doesn’t account for real-life shocks, like a sudden spike in rent or housing costs after several years.

At a recent conference, Dobson pointed out how people might endure years without significant rent hikes, only to face dramatic increases later. This leaves many feeling blindsided even when overall trends suggest stability.

Bill Pulte, a former Trump administration official, echoed these sentiments, arguing that despite claims of lowered inflation, many Americans are still struggling with high mortgage rates that are “really hurting a lot of people.” He recently celebrated a proposal for 50-year mortgages as a potential solution but raised concerns that even that might not significantly ease financial burdens when considering interest costs over time.

Donovan warns that affordability is a concept that could stick around longer than typical “cost of living” discussions, becoming a persistent theme in both politics and daily life. As the conversation unfolds, the gap between what people can afford and what they desire remains a critical issue for many.

For further reading on how affordability is impacting different sectors, consider checking out resources from UBS or Fortune to explore expert insights.

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affordability,Housing,Inflation,mortgages