States where foreclosure activity is high can influence the outcome of the election, industry experts believe. The housing market in the swing states of Florida, Ohio, Nevada, Wisconsin and Michigan has emerged as a hot campaign topic, as these are the hardest hit due to foreclosure crisis.
On the national front, the housing market has been showing signs of recovery with house prices rising and foreclosure activity dropping in some states. But this election might see less voter turnout from states with high foreclosure rates.
“All likely due to anxiety and mistrust, the thinking likely being, ‘we are already hurting, what is our vote going to change? We’re now just trying to survive,’" a Fox report said.
This is corroborated by a University of California, Riverside study, which showed that neighborhoods in California suffering from foreclosures witnessed lower levels of voter turnout in the 2008 presidential election.
“Neighborhoods affect the political participation of their residents,” Vanesa Estrada-Correa and Martin Johnson wrote in the study. “Other things being equal, individuals are more likely to vote when they live in places where neighbors vigorously participate in politics, while individuals are less likely to vote when their neighbors are less civically active. Given that foreclosure creates instability in communities, areas that experience higher levels of foreclosure have lower voter turnout.”
Meanwhile, another report by foreclosure website RealtyTrac points out that the five swing states could be important battlegrounds in the presidential election. According to the report, foreclosure filings in Florida are rising and currently it has the third-highest foreclosure rate.
“With 29 electoral votes, Florida is a big political prize…. but an avalanche of foreclosures has devoured the Sunshine State’s economy, and voters are angry,” Realtytrac stated.
Similarly, in Ohio – a state that has backed the winning candidate in the past 12 elections- unemployment is high. In other swing states such as Nevada and Michigan, too, foreclosures and unemployment are crippling factors.
A lower overall housing price in Wisconsin due to increase in bank-owned foreclosures has dragged down the housing sector here.
“At this point, the 2012 election is shaping up to be much closer than 2008. Obama has the benefits of incumbency, but also a dismal economic record to run on. For Romney, the election is within his grasp, but the road to victory runs through these five foreclosure swing states, which collectively control 79 electoral votes,” the RealtyTrac report said.
