Foreclosures Could Help Romney Win the White House

by on Foreclosures

Romney

Let's face it, the real estate market is still very much a part of the current United States hot topics and is closely related to the overall economy, especially since there is a relationship between homeownership and income. In fact, local economies are even more closely tied to the local real estate market, which is why the current state of the real estate market and its projected future is incredibly important to many voters.

Therefore, swing states for the upcoming presidential election with struggling real estate markets are urging both candidates to talk about their real estate market plans in detail. Although both candidates have essentially shied away from the topic and appear to have very little solid plans for real estate market recovery, it appears as though foreclosures could actually help Romney's presidential campaign.

The Impact of Foreclosures on Voters

Everyone has talked about how states with a real estate market that continues to struggle – such as Florida and Nevada – will pay close attention to plans aimed at addressing these issues; however, very few people have talked about how foreclosure in and of itself affects someone's likelihood to vote.

A University of California study reports that areas with higher foreclosure activity had a smaller turnout at the 2008 Election Day polls. Therefore, we could see the same thing in the upcoming presidential election.

When individuals face foreclosure, they could move to somewhere else in the same area or completely jump across state lines. If the foreclosure has occurred recently, these individuals may not change their voter registration card to reflect their new location. Individuals who have undergone foreclosure tend to have a lot on their plate and may overlook the importance of voting. At the same time, others may be discouraged to vote feeling as though their situation is overpowering and voting won't make a difference.

At the end of the day, it is too soon to determine how foreclosures will affect voter turnout. It could drive more people to the polls to vote in favor of removing the incumbent from office or voters in high foreclosure areas and high poverty areas may refrain from voting all together, which could also help Romney.

Foreclosures and Local and State Economies

Over the past 5 years the real estate market has been struggling and so have homeowners, especially those with underwater mortgages or families who faced (or are facing) foreclosure. Although the crash is arguably in part due to President Bush's leadership, many people firmly believe that President Obama has failed to provide the desired relief.

When foreclosure inventories rise, state and local economies suffer. When state and local economies have been struggling for several years and continue to struggle with Election Day quickly approaching, these situations often hurt the incumbent – in this case President Obama.

In conclusion, the number of foreclosure properties could either drive voters away or could increase voting activity for areas with a struggling economy. While FiveThirtyEight.com currently gives Romney only a 26.9% chance of winning, either situation could potentially help Romney in his efforts to acquire the White House.

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