The Election Shopping Slump: A Nation in Hesitation
In Westport, Connecticut, a 35-year-old investment firm employee is choosing to postpone any financial investments until after the upcoming election. Meanwhile, in Kenosha, Wisconsin, a sales professional expressed his desire to purchase a home and leave behind his rental situation, but he feels it’s impossible to make such a monumental decision with Election Day just weeks away. This phenomenon can be described as the election shopping slump.
The impending presidential election, featuring Vice President Kamala Harris and former President Donald J. Trump in a tight race, has introduced an additional layer of uncertainty into an already complex economic landscape marked by inflation, soaring interest rates, and a surprisingly resilient job market. As the nation grapples with these pressures, consumers from all political backgrounds are hesitating to make significant purchases, keeping their finances close to the vest.
Some prospective home buyers are waiting to see if a Harris administration will fulfill its promise of down-payment assistance for first-time buyers, while others are optimistic that a Trump victory could lead to reduced taxes. Yet, many are simply eager for the election cycle to conclude.
The quintessential American pastime of spending on experiences and goods — be it a dream honeymoon, the allure of a new car, a home renovation, or even impulsive online shopping — is currently on hold for many. Engaged couples are so weighed down by the political climate that they are hesitant to book wedding venues for 2025. Some even deliberately avoided securing dates in October and November last year, anticipating that the political climate could cast a shadow over their celebrations.
Car dealerships and real estate agents alike report that potential buyers are postponing decisions, hoping to see a drop in interest rates or prices in the wake of the election. Online retailers have been on high alert for the election-induced anxiety since the summer months.
“They are frozen,” remarked Antonio del Rosario, a real estate broker based in New York City, referring to both home buyers and sellers. He noted that this sense of election-related apprehension typically surfaces around this time every four years, with individuals pondering whether a new administration will bring changes to tax policies, the economy, or the nation’s overall trajectory. This year, clients appear especially bewildered about what’s ahead. “There is a deer-in-the-headlights attitude,” Mr. del Rosario added.
Consumers inherently dislike uncertainty. When individuals feel that the ground beneath them is shaky, they tend to retreat and hoard their resources. In today’s world, those resources are predominantly cash. “It’s not that people aren’t aware they’ll need a house or a car,” explained Kelly Goldsmith, a marketing professor and behavioral scientist at Vanderbilt University who specializes in the psychology of uncertainty and scarcity. However, she also noted, “If the world seems to be unraveling, having a stash of cash hidden away feels like a safety net, doesn’t it?”