Housing costs have officially dethroned inflation as the biggest worry for young Americans. According to CNBC's latest All-America Economic Survey, voters aged 18 to 34 now rank housing as their top political issue heading into the 2026 midterms—above the cost of food and groceries, and even above protecting democracy. For men aged 18 to 49, housing is the leading concern, and for voters 35 to 49, it's second only to food costs.

The survey underscores how the affordability crisis is reshaping political priorities. Jay Campbell, a partner at Hart Research and the Democratic pollster for the survey, put it bluntly: "I think housing could be the healthcare of 2024, given especially the need for Democrats to turn young people out who are inclined to be anti-Trump and pro-democratic."

The numbers behind the anxiety are stark. A June report from Harvard University's Joint Center for Housing Studies found that 49% of renter households spent more than 30% of their income on housing, while 12.1 million renter households devoted more than half their income to rent. That's not just tight—that's precarious.

And it's not just renters feeling the squeeze. CNBC's second-quarter Housing Market Survey earlier this month showed buyers gaining a bit more negotiating power as inventory improved, but mortgage rates and elevated home prices remain the biggest obstacles. Sellers are increasingly willing to cut asking prices, but that hasn't been enough to lure buyers back in droves.

Borrowing costs are stubbornly high. HousingWire Lead Analyst Logan Mohtashami recently said mortgage rates are likely to stay in their recent range as the Federal Reserve maintains a hawkish stance and geopolitical uncertainty keeps long-term rates elevated. The Mortgage Bankers Association reported the average rate on a 30-year fixed mortgage climbed to 6.65%—the highest since August 2025—while purchase applications fell 7% from the previous week. That's a clear sign that higher rates are still chilling demand.

Meanwhile, Zillow dropped a sobering stat: the number of U.S. cities where starter homes cost at least $1 million has nearly tripled since 2020. Persistent housing shortages and strong demand keep pushing prices higher, making the dream of homeownership feel increasingly out of reach for many.

Housing has become a key campaign issue, especially after a bipartisan bill aimed at increasing housing supply, lowering costs, and limiting the role of private equity in the housing market became law earlier this month. President Donald Trump declined to sign the measure after canceling a planned signing ceremony, but he also didn't veto it, allowing the legislation to take effect.

The survey found Democrats hold a modest edge on the issue: 38% of respondents said Democrats would do a better job handling housing, compared with 32% for Republicans. Among voters who ranked housing among their top two concerns, 53% favored Democrats. Overall, respondents gave Democrats a 49% to 45% edge over Republicans on control of Congress after the midterms.

For young voters, housing isn't just a talking point—it's a daily reality. And with the midterms approaching, it's an issue that could decide which party controls Congress.