5 Ways the Midterms Could Change the Housing Market

Homebuyers heading into 2027 are hurtling towards ever higher prices and mortgage rates than seen in 2026, which will likely push them right out of housing the market. The November 3 midterms, however, could influence which housing policies move forward next year as control of Congress could significantly shift – thereby making the 2027 housing market less of a nightmare.

A September survey by Clever Real Estate found that 74% of Americans believe the country is in the grips of a housing crisis, and 78% want the next Congress to prioritize housing affordability. Should the new House and Senate follow the will of the voters and do exactly that, scroll down to see five helpful housing market developments that could happen in 2027.

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Down-Payment Assistance

Democrats have proposed expanding down-payment assistance and lowering mortgage-insurance costs, per HousingWire. Should the Dems retake the House (and possibly the Senate) as current polls project, they could push for legislation that expands such programs, allowing eligible buyers to need less cash upfront – especially households that can manage mortgage payments but struggle to save for them while paying rent.

Mortgage Portability

HousingWire notes that multiple candidates have supported making mortgages portable or assumable. Portability lets a homeowner transfer an existing mortgage to a new property, keeping a lower rate rather than taking out a new loan at current rates. An assumable mortgage lets a qualified buyer take over a seller’s existing loan, subject to its terms and lender approval.

Both of these ideas have been featured in numerous campaign proposals. If midterm winners advance them, owners who feel locked into low-rate mortgages will likely be more willing to sell, which will then bring more listings to a dry market. That creates more property for you to buy, at less competitive rates.

Property-Tax Changes

A number of property-tax freezes and tax-relief proposals have also been touted throughout the midterm campaigns, with 60% of Americans surveyed by Clever support reducing property taxes to improve local affordability. If newly elected state lawmakers or governors enact such relief, eligible homeowners will have more room in their budgets for mortgage payments. Savings would vary by location, but lower taxes would reduce the overall costs of staying in a home, new or otherwise.

Zoning and Construction Incentives

Governors and state legislatures can also influence zoning permits and incentives for homebuilding. Midterm-elected officials who push harder for streamlined approvals or construction incentives could make it easier for developers to add homes, including apartments and more affordable units.

However, those politicians might encounter local resistance hurdles: only 21% of Americans in Clever’s survey supported building more high-density housing in their area. Reforms would take time to produce completed homes, so any effect on 2027 prices might be modest. Over the longer-term, though, more supply would create a less competitive housing market, which means lower prices.

Renter Protections

Clever’s survey found that 65% of Americans support laws making it harder for landlords to evict tenants without cause, while 38% support capping rent increases. The midterms could influence whether those protections advance through legislation or not.

Stronger protections could give renters more stability. Rent caps, where and when adopted, could limit increases for covered tenants, depending on the law and type of housing. These measures would impact rental conditions directly, separate from policies aimed at buyers or construction.

After the Midterms

Buyers in 2027 should watch for changes to assistance and mortgage options; homeowners should track state tax measures; renters should follow local tenant protections. The many campaign pledges of 2026, depending on who wins in both chambers of Congress, will determine who receives relief and how quickly that relief hits the housing market.

Editor’s note on political coverage: MoneyLion is nonpartisan and strives to cover all aspects of the economy objectively and present balanced reports on politically focused finance stories.

This article was provided by MoneyLion.com for informational purposes only and should not be construed as financial, legal or tax advice.