Arizona housing market 'crisis' gives Kali Lake confidence in 2024

As Arizona struggles with years of housing weakness, Republican U.S. Senate candidate Kari Lake sees an opportunity to capitalize on public discontent to boost her 2024 campaign.

On Tuesday, Lake claimed: Newsweek's Congressional correspondent Alex Louhande says her strong policy solutions are “sick and tired” of the state's economic challenges, particularly the widespread home affordability crisis and soaring mortgage rates facing all of Arizona. He said he believes it will resonate with Arizonans.

With independent Sen. Kyrsten Sinema withdrawing from the race, Lake's Senate seat could flip from Democratic to Republican.

Mr. Lake has used economic dissatisfaction as an issue, campaigned on the border crisis, and tapped into Arizonans' sentiments about the struggling housing market to run for a Senate seat that could be a game-changer in Arizona. They aim to gain an upper hand in the battle for position.

“Everyone is fed up with where the economy is going,” Lake said. newsweek. “They're tired of mortgage rates and inflation and can't afford anything.”

Arizona's real estate sector was once booming during the pandemic, but is now showing signs of a dire downturn. Independent real estate analyst John Wake characterized the sharp decline in home sales as a “real estate sales recession,” predicting a 40 percent decline in Phoenix starting in 2021. newsweek It was reported last month.

Despite the possibility of a soft landing for the economy, homeowners are worried as they face high interest rates and persistently high real estate prices with little relief in sight. And “the problem is getting worse,” said Mark Strapp, a real estate professor at Arizona State University.

“We're not seeing a decline in home prices,” Strapp told reporter Gabriela Bachala of local television station KPNX in Phoenix. “They're still pretty stubborn, and I think that has a lot to do with available inventory.”

The housing affordability problem, which Bachala deemed a “crisis,” is exacerbated by a severe shortage of available housing in the state, resulting in low homeownership rates for new buyers. There is a market that is reluctant to part with mortgage rates.

Average home prices in Phoenix have fallen slightly over the past year, with the median household income falling below the $75,000 needed to maintain middle-class status, putting financial pressure on Arizonans. is increasing.

Although some economists expect interest rates to fall in the summer, normalizing house prices seems a distant goal and will likely take years to achieve.

Amid tough economic times, Lake is building his Senate campaign to target Arizonans' “fed up” feelings about housing market issues and broader economic concerns.

Recent polls have shown that support is divided, with a Rasmussen poll conducted in late February showing Lake holding a 4-point lead over Democrat Ruben Gallego. The Senate race is likely to be close. Conversely, an Emerson College poll conducted around the same time gave Gallego a seven-point advantage, underscoring the unpredictability of the race's outcome.

Lake's immediate focus is on defeating Republican challenger Pinal County Sheriff Mark Lamb and establishing himself as a front-runner against Gallego in a race that could flip the Senate seat from Democrat to Republican. The goal is to establish

Arizona's economic outlook remains a crucial issue in the electoral dynamics. A New York Times/Siena poll conducted last December showed that a majority of Arizona voters perceived the country's economy negatively, with inflation and housing costs as major concerns.

Despite mixed views about the health of the state's economy, from optimistic forecasts by ASU's Seedman Institute to warnings about inflation from the Eller School of Management, Lake said he's not looking to use economic dissatisfaction to his advantage. and advocates for policy changes to address the housing market crisis and the broader economy. Challenges facing Arizonans.