Economist says fixing affordability takes six months to a year
Voters in Houston cite inflation and housing costs as top concerns after Democrats seized control of Congress.
By Alexei Brooks ·
Three-quarters of House voters nationally rated their economic outlook as poor or not good, according to ABC News Voter Polls.
That sentiment drove a months-long surge in inflation and a spike in the 30-year fixed mortgage rate. Gas prices also climbed steadily from early 2026. These factors pushed affordability to the top of the agenda for the 2026 midterm election.
The election results delivered a Democratic takeover of both the U.S. House of Representatives and the U.S. Senate. Laura Ballesteros, a voter in Houston, told ABC13 that she and her neighbors are worried about job prospects and the cost of living.
"Affordability and job prospects. We are all worried and want a better change for things, and we are definitely looking for someone to represent us to speak about these topics and create change," Ballesteros said.
John Diamond, Ph.D., director of the Center for Tax and Budget Policy at Rice University’s Baker Institute for Public Policy, outlined potential legislative fixes. He suggested that lawmakers could reduce property taxes at the local level. He also proposed reducing regulations on the housing market to increase construction.
Diamond noted that the Federal Reserve could eventually enter a rate-cutting cycle. This would lower the price of housing and consumer financing for items like cars. He identified the war in Iran as a major external factor driving current costs.
"What's the one thing that would have the biggest impact? That's the war in Iran. If we could figure that out, and we could get out of this uncertainty and out of this conflict, and gas prices could come way down, that would be immediate, and hopefully we would see some relief in terms of diesel costs," Diamond said.
Voters expressed a desire for quick relief but acknowledged that structural changes require time. Diamond estimated that meaningful progress on affordability would occur on a six-month to one-year basis. He warned that voters should not expect visible changes within one to two months.
