The American dream of owning a home in a nice neighborhood with a white picket fence can be the same across the country. But how much this house is worth differs a bit by congressional district. Getty Images / iStockphoto
People who live in congressional districts controlled by a Democrat are more likely to have seen their home equity increase in the past year, according to a new analysis of the country’s real estate market.
Researchers at real estate analytics firm Attom Data Solutions examined local housing markets across the country to see how various measures of the health of the real estate market differed between liberal and conservative parts of the United States.
Although more homes were sold in Republican districts, house prices were significantly higher in areas Democrats represented to Congress. The average selling price of a home in a Democratic district was nearly $ 429,000, compared to about $ 245,000 in the Republican-leaning districts.
The difference in house prices seems to have left owners in the blue zones in a stronger position. Almost a third of the properties in the areas Democrats represent were high in equity, which means that a person’s mortgage balance is less than half of their home’s estimated value. This was only true for a quarter of households in Republican-controlled areas.
Due to the stronger equity position, only 4.9% of homeowners in Democratic counties were severely undervalued on their home loans, meaning they owe at least 25% more on their mortgage than the value of their home. Comparatively, 7.2% of homeowners in Republican counties were severely underwater, according to the study.
That said, there were some advantages to owning a house in a Congressional Republican district. On average, property taxes are lower in these areas – $ 2,676 compared to $ 5,127 in Democratic-controlled areas of the country. And Republican counties had fewer homes in foreclosure.