The political consequences of a surge in housing prices
P14-4
Presented by: Alexandra Jabbour
Owning a home can have long-term benefits since it is usually perceived as a safety net, while rent prices can be a burden with the risk of causing economic anxiety among renters. This asymmetric consequence appeals to social scientists who want to understand the causes and consequences of inequality and its political implications. This research fits within this interest by focusing on the effect of a surge in housing prices on economic perceptions and political attitudes. To capture the effect of a surge in housing prices on political opinions among renters, I leverage the sharp and quick increase in housing prices in Montreal (Canada), which led most Montrealers to be poorly informed regarding the current prices. To test my hypotheses, I employ a two-arm experimental design to assess whether exposing subjects to objectives figures on housing prices in Montreal leads to a higher sense of being economically worse-off compared to their neighbors (H1), a lower sense of mobility (H2), a lower satisfaction with the economy (H3), to agree on a lower level of inequality in income (H4), to agree on an increase in social benefits to compensate income inequalities (H5) and, finally, a greater propensity to hold incumbents accountable for a surge in housing prices (H6). The results show that exposure to objective figures on housing cost triggers economic anxiety among renters while incumbents are not held accountable for their economic fragility.