Democrats Regain House and Senate in Midterms Defined by Affordability Concerns

Democrats rode affordability concerns to major wins on Tuesday night, retaking control of the House and Senate and flipping multiple districts.

Democrats flipped Senate seats in Texas, Ohio, Kansas, Iowa, North Carolina, and South Carolina and picked up a swath of seats in the House to win both chambers of Congress, according to The Associated Press projections. They've spent the year hammering Republicans on affordability and housing costs.

In the 2026 elections, voters decided all 435 House seats, 35 Senate seats, and numerous housing-related measures. Both Democrats and Republicans have 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."

Housing issues have been a dominant note in 2026, as Americans struggle with affordability. 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 a gallon compared to $3.03 a year ago, according to AAA. President Donald Trump has 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.

Ingle noted that Trump in his second term had signed an executive order prohibiting large Wall Street firms from purchasing single-family homes, directed Fannie Mae and Freddie Mac to purchase $200 billion in mortgage bonds that helped drive rates to four-year lows, and "cut unnecessary red tape at a historic pace to boost supply, speed construction, and lower costs."

"The President will not stop fighting until the American Dream of homeownership is within reach for every American, which is why he continues to sign bold new executive orders and calls on Congress to pass further legislation," he said.

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

The Trump administration, meantime, has undertaken other changes such as encouraging more innovation in the homebuilding sector and reducing rules for some housing, like manufactured homes. It's 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 on X late Tuesday, as major news outlets projected Democrats would take control of the House after flipping a half-dozen seats. Trump later told The New York Times he would accept the results of the election.

The economist Krimmel says that one "wild card" to keep an eye on is how the election outcome affects Trump's war with Iran.

"Many Democrats have been vocal critics of the conflict, which has sparked inflationary oil supply shortages," he says. "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 evening with several key wins in both the House and 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.

And 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.

Democrats had several early victories. Democratic former North Carolina Gov. 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 three formerly Republican seats picked up by Democrats 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 reelection after an extended absence fueled national headlines. Meanwhile, in Ohio, Democrat Sherrod Brown returned to Congress after campaigning heavily against incumbent Jon Husted, attacking the Republication 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: Veto power is 'impervious'

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 "crazy" measures advanced by Democrats in Congress.

"I have the power of veto, and the power of veto, you know, it's impervious," the president said.

House Speaker Mike Johnson, who won reelection in Louisiana, defended Republicans' economic actions in remarks before midnight. He said Americans would "suffer" if Democrats use control of Congress to enact "retribution" over the next two years.

"From the first day of this election we knew that to keep the House and sustain the majority, we would have to defy more than a century of midterm history," Johnson said. "It's very, very difficult to overcome."

But Johnson said an agenda of "common sense" would lead Republicans to take back the House in 2028.

"Republicans have much more work to do," he said. "The new Congress doesn't change that at all."