Home prices and the 2008 presidential election: Evidence from state level data

The purpose of this paper is to examine the role of housing prices in the outcome of the 2008 U.S. presidential election. Based on data for the 50 states, this study postulates a multivariate model in which the impact of home values is exposed while controlling for other explanatory factors might have exerted independent effects on the Democratic victory. Results of estimation indicate a significant inverse effect of property price appreciation on Democratic votes.