The younger generation is particularly angry because many people can no longer afford their homes. And their surprising support for right-wing populist parties is influencing elections everywhere.
In the Netherlands, where the housing crisis remains a major concern for voters, Geert Wilders’ Freedom Party won last year’s election. In Portugal, which is also plagued by a housing crisis, there was a significant increase in support for Chega. In Germany, rising rents helped the Alternative for Germany party gain support. And in Sweden, a housing market with few rental options led to segregated housing for migrants and the growth of a far-right party with neo-Nazi roots that now commands over 20 percent of the vote.
Meanwhile, the U.S. is suffering from its own severe housing affordability crisis. U.S. housing prices have tripled since 2000, dwarfing other economic indicators like average salaries, which have risen under President Joe Biden. As others have noted, without housing costs, inflation would be “a healthy and stable 1.8 percent” instead of nearly double. And if voters blame the current administration for their economic woes, former President Donald Trump could win a second term this November.
And who can blame all these voters? People who can’t afford housing are quick to point the finger, and incumbent politicians are easy targets – as are migrants. So these grievances are easy prey for parties that like to take aim at this anger. And this is where political candidates like Wilders and Trump are successful. It’s a simple rhetorical phrase, but one that is politically powerful and palatable to a public that is understandably angry about not being able to find affordable housing.
Solving this problem will take courage. Across Europe and the US, the market has dictated terms, leading to housing bubbles, crashes and even more unaffordability. Meanwhile, governments have repeatedly misdiagnosed the problem, leading to policy solutions that not only fail to lower prices, but also generate even more carbon emissions and conflict.
To be clear, unaffordable housing is rarely the result of a lack of supply – no matter what the UK Labour Party claims in its political manifesto or what the US media says. This kind of misdiagnosis often leads to the conclusion that the only solution is more construction, more buildings and more sequestered carbon. It paints climate activists as obstructionists, accusing them of not letting governments build the housing they need. And it fuels the “migrants are stealing our homes” narrative that is widespread in the UK and now the Netherlands.
