From California to Krakow, disillusioned young voters are increasingly losing faith in democracy due to the impact of high rents and rising property prices. The scarcity of affordable housing has sparked protests in European cities and on both coasts of the United States, where home prices have skyrocketed by 54 percent since 2019. In California, renters recently marched on the state capitol to protest the lack of reasonably priced rentals. In San Francisco, the delay in approving new housing has led to a heated debate in the mayor’s race.
The housing crisis is pushing voters, especially younger ones, towards populist leaders who promise to address the issue by focusing on increased immigration, although this may not be the root cause of the problem. This link between housing and populism is fueled by the frustration felt by those who are priced out of the market, according to research by David Adler and Ben Ansell.
Millennials and Gen Z are particularly affected by the housing crisis, leading to a growing disillusionment with democracy, as indicated by opinion polls. The scarcity of affordable housing has also fueled anti-immigrant sentiment in some Western countries, which populist leaders have exploited to gain support.
The housing crunch is not solely caused by migration but also by a variety of factors such as inadequate housing construction in the rich world. In different countries, various factors contribute to the problem, including planning laws in Britain, EU regulations in the Netherlands, and real wage stagnation in the Czech Republic.
The high cost of housing has become a significant issue in the U.S. presidential race, reflecting the broader concerns of voters about inflation and economic challenges despite a booming economy.
Years of slow construction and high interest rates have made finding a place to live — whether to buy or rent — more challenging than ever before. The Federal Reserve’s sharp hike in interest rates to combat inflation post-pandemic has made purchasing a home much more expensive, despite helping to bring down overall inflation. According to a Gallup poll, the cost of owning or renting a home is Americans’ second-most important financial problem, following the general high cost of living. This issue has become a top concern for young voters as well.
The Biden White House has introduced proposals to make housing more available and affordable, but significant moves require legislation that is unlikely to pass in a divided Congress. Current homeowners are hesitant to upgrade their homes due to higher mortgage costs, limiting the supply of starter homes for first-time buyers and increasing competition for rentals.
In Canada, Prime Minister Justin Trudeau is also facing housing challenges as high prices continue to shut out new buyers, with international students and temporary residents exacerbating the problem. The perception of newcomers impacting housing has led to increased negative views on immigration in Canada.
In the European Union, property values and rents have surged in recent years, outpacing inflation and wage increases. The scarcity of affordable housing is a shared issue across Europe, with many young people becoming more anti-immigration in response to the housing crisis. National elections in several European countries have seen young people voting for nationalist and Euro-skeptic parties.
Overall, the housing crisis is a complex issue with no easy solutions in sight, as governments and policymakers grapple with balancing housing affordability, immigration policies, and the concerns of their citizens.
“Isn’t that strange?” Angeline, a 37-year-old mother of two working in the health sector, shared with POLITICO.
“Everything seems to be falling into place for outsiders, but when you observe some Dutch citizens,” her husband Niels chimed in, “they are struggling with debt, living on the streets, and no one seems to be helping them.”
It’s no surprise that Wilders’ anti-migrant rhetoric found support in Huizen, where his party garnered the highest percentage of votes in the European elections – 17.3%, a significant increase from the 3.1% they received in the 2019 EU elections.
Reflecting Angeline’s concerns, Johan Vaarkamp, a 68-year-old agricultural worker, emphasized the urgency of the situation, stating that it was “time to raise the alarm.”
He mentioned that many of his acquaintances changed their political affiliations in the last election, opting to vote for Wilders’ nationalist populist Party for Freedom, or PVV. Vaarkamp himself supported a populist party advocating for farmers’ interests, which is now in a coalition with Wilders.
While Vaarkamp’s generation is not actively seeking new homes, their children are, and they are feeling the impact.
“If you’re in your 30s and looking to buy a home, it’s nearly impossible,” he explained. His 38-year-old daughter knows someone who is still living with their parents due to a lack of available housing. “She’s been on the social housing waiting list for 20 years, and there’s no sign of progress.”
