Democrats Retake House, Senate in Midterms Defined by Affordability Concerns

Democrats retook control of the House and the Senate by riding affordability concerns to major wins Tuesday, flipping Senate seats in Texas, Ohio, Kansas, Iowa, North and South Carolina, and picking up a host of seats in the House.

Democrats spent most of the year attacking Republicans on affordability and housing costs, according to Realtor.com.

In the 2026 elections, all 435 House seats and 35 Senate seats were up for election, along with real estate- and housing-related measures.

House Minority Leader Hakeem Jeffries would make history as the first Black Speaker of the House when the new Congress is seated in January. Current Majority Leader Mike Johnson announced Wednesday morning that he will not seek a leadership role in the next Congress.

Economic Impact Unclear

Both Democrats and Republicans had listed priorities to improve housing affordability in coming years.

“Tonight’s Democratic sweep shuffles control of the legislative branch, but the economic impact, which is fundamental for the U.S. housing market, is far less clear,” says Realtor.com Senior Economist Jake Krimmel. “Democrats have a clear mandate to focus on pocketbook issues, but whether they can translate that into a legislative agenda that delivers on that mandate remains to be seen.”

ABC News noted that Jeffries has said Democrats would harness the political capital of a new majority to reinstate expired Affordable Care Act healthcare premium subsidies and reverse nearly $1 trillion in Medicaid cuts that were included in the president’s signature domestic policy law, the Working Families Tax Cuts Act.

“Well, Day One plan is going to be to make sure we’re going to be focused on healthcare, focused on driving down, right, the high price of groceries and gas and housing,” Jeffries told ABC News.

House Democrats indicated they will quickly consider legislation to end Trump’s global tariffs and restore congressional power over trade policy, ABC News reported.

Realtor.com noted that housing issues have been a dominant topic in 2026, as many Americans struggle with affordability.

Mortgage Rates

For example, the 30-year fixed-rate mortgage hit its highest level in three years last month before dipping back to 7.24% last week, according to Fannie Mae. The national average gas price is $4.14 compared to $3.03 a year ago, according to AAA.

Tuesday morning, President Donald Trump pledged to focus on affordability issues.

“President Trump has been laser-focused on making housing more affordable,” White House spokesman Davis Ingle told Realtor.com in a statement on Tuesday morning.

Earlier this year, Congress passed a bipartisan housing package aimed at making it easier to build homes, the 21st Century Road to Housing Act. It will take years for some of those changes to take effect in the market, however, and lawmakers expect states and local governments to implement some changes.

In the meantime, the Trump administration undertook other changes such as encouraging more innovation in the homebuilding sector and reducing rules for some housing, like manufactured homes.

It also sought to limit the impact of institutional investors in the housing market.

“I wasn’t on the Ballot, and if I was, we would have won IN A LANDSLIDE!,” Trump posted to X late Tuesday, as major news outlets projected Democrats would take control of the House after flipping half a dozen seats.

War in Iran

Trump later told The New York Times he would accept the results of the election.

The economist Krimmel said that one “wildcard” to keep an eye on is how the election outcome impacts Trump’s war with Iran.

“Many Democrats have been vocal critics of the conflict, which has sparked inflationary oil supply shortages,” he said. “A resolution would likely improve oil supply, helping to ease price pressures and potentially providing relief for mortgage rates. However, a lot of uncertainty remains. Wanting the conflict to end, and finding terms that work for all involved are two different things.”

Democrats flip numerous seats in Congress.

Democrats marked the night with several key wins in both the House and the Senate.

Democrat James Talarico flipped a Texas Senate seat blue for the first time since 1988. In Kansas, Adam Hamilton became the first Democrat in almost a century to be elected to the Senate. In South Carolina, Democrat Annie Andrews flipped the Senate seat formerly held by Republican Lindsey Graham.

Andrews beat Graham’s sister, Darlene Graham, who had been picked by Trump.

Democrats Have Early Victories

Democrats had several early victories. Democratic former North Carolina Governor Roy Cooper flipped the state’s Senate seat, replacing Republican Thom Tillis, who chairs the Senate’s Financial Institutions and Consumer Protection Subcommittee. Democrat Jamie Ager also flipped a North Carolina House district.

“We knew that the chaos and corruption in Washington were hurting our people,” Cooper said in a speech. “Today, you said ‘this has to stop.’”

Pennsylvania saw Democrats pick up three formerly Republican seats, including Janelle Stelson, Paige Cognetti and Bob Brooks. They ousted incumbents Ryan Mackenzie, Rob Bresnahan Jr. and Scott Perry.

In New Jersey, Tom Kean Jr. lost re-election after an extended absence fueled national headlines, Realtor.com noted. In Ohio, Democrat Sherrod Brown returned to Congress after campaigning heavily against incumbent Jon Husted, attacking him over his prior support of data centers.

“Politics should never ever be about two private clubs who are more interested in beating up each other than they are in solving problems,” said Josh Turek, who flipped a Senate seat in Iowa for Democrats.

Trump Talks Veto Power

On Truth Social, Trump posted a photo of a red hat with the word “veto.” He has repeatedly criticized Democrats this year, saying their policies drive up housing and other costs.

Trump told Fox News late on Tuesday night that he would not shy away from using presidential vetoes to block measures advanced by Democrats in Congress.

“I have the power of veto, and the power of veto, you know, it’s impervious,” Trump said.