Thirty-two percent of Americans have lost their job or lost wages—or someone in their household has—due to the coronavirus pandemic, according to a new report from Redfin (redfin.com), the technology-powered real estate brokerage. The report features results from a survey of more than 3,000 U.S. residents that was fielded in October.
Broken down by homeownership status, 39% of renters reported a lost job or wages, versus 30% of homeowners.
“The pandemic is exacerbating inequality and widening the wealth gap between those who own homes and those who don’t,” said Redfin chief economist Daryl Fairweather. “Renters who have lost jobs or wages are likely dipping into savings for daily living expenses, pushing homeownership further out of reach. More homeowners have been able to keep their jobs, and many who can work remotely are cashing in their home equity to purchase a bigger, better home in a more desirable area.”
Homeowners are more likely than renters to be financially better off now
Fifty percent of respondents to the same survey say they’re financially better off than they were four years ago.
Broken down by homeownership status, 53% of homeowners are financially better off than they were four years ago, compared with 44% of renters. On the flip side, 37% of renters are financially worse off versus just 22% of homeowners.
Broken down by political affiliation, 63% of Trump voters are financially better off than they were four years ago, versus 43% of Biden voters.
Renters are significantly more likely to be Biden voters, with 57% of renters reporting themselves as Biden voters 32% reporting themselves as Trump voters, according to a breakdown of survey respondents who are planning to vote this year. Homeowners are equally likely to support each candidate: 47% of homeowners are Trump voters and 46% are Biden voters.
“Even though the country is in the midst of a major economic downturn, the majority of homeowners have made financial gains over the last four years, partly due a big increase in home values,” Fairweather said. “But renters who have faced rising housing costs without a corresponding rise in wealth from home equity are more likely to be financially worse off than they were four years ago. The desire for change may be one reason why renters are significantly more likely to have voted for Joe Biden for president.”
Redfin (www.redfin.com) is a technology-powered residential real estate company, redefining real estate in the consumer’s favor in a commission-driven industry. We do this by integrating every step of the home buying and selling process and pairing our own agents with our own technology, creating a service that is faster, better and costs less. We offer brokerage, iBuying, mortgage, and title services, and we also run the country’s #1 real estate brokerage search site, offering a host of online tools to consumers, including the Redfin Estimate. We represent people buying and selling homes in over 90 markets in the United States and Canada. Since our launch in 2006, we have saved our customers over $800 million and we’ve helped them buy or sell more than 235,000 homes worth more than $115 billion.
For more information or to contact a local Redfin real estate agent, visit www.redfin.com. To learn about housing market trends and download data, visit the Redfin Data Center. To be added to Redfin’s press release distribution list, email email@example.com