"Everyone knows why we lost. And any honest conversation about where we go from here must start there," Vance said.
Vice President JD Vance is blaming Republicans' election losses on the Iran conflict and rising prices.
"The real reason we lost is obvious to almost everyone," Vance said in a post on X, hours after Democrats shellacked Republicans in the midterm elections, flipping almost three dozen seats in the House and Senate to win control of both chambers.
Vance noted that polling found the war in Iran and cost of living and inflation concerns were the top items on voters' minds heading into Election Day.
Those were among the top reasons that many of the voters who helped propel President Donald Trump to a second term in 2024, with majorities in both chambers of Congress, voted in Democrats on Tuesday, Vance said.
"The reason we lost is the war," Vance said in the post. "The president himself said so last night. If you'd like to argue it was worth it, that losing the Senate for the next 6 years was worth it, then do so. Argue it was a worthwhile cost to pay. Agree or disagree, that's at least honest.
"But everyone knows why we lost. And any honest conversation about where we go from here must start there," Vance said.
Indeed, Americans were broadly concerned about affordability in the months leading up to the election. While Trump said he remained focused on it, he spent the run-up to the election detailing projects in Washington, DC, such as a botched effort to renovate the Lincoln Memorial Reflecting Pool.
Both Democrats and Republicans have promised their own affordability agendas for the coming months. But in swing states that turned against Trump, including Iowa, Ohio, Texas, and Maine, housing affordability was at the top of voters' minds. So, too, have many young voters worried that homeownership is rising out of reach.
Inflation worries
Most markers of inflation show many costs have risen sharply this year. Gas prices often embody Americans' concerns, and AAA reports the national average price for gas is $4.12 a gallon, compared to $3.05 a year ago.
Trump, for his part, continued defending his economic record on Tuesday, telling media outlets that night that he would accept the election results and might seek common ground with Democrats.
But then he also posted an image of a red hat with the word "veto" on it, before celebrating the rise of the Dow the next morning following the results.
"Stock Market just hit another Record High—91 Days in just a short period of time—Less than two years," he posted to Truth Social on Wednesday. "Your 401(k)s are through the roof. Record Setting All!"
And yet, the war in Iran and its resultant rise in oil prices and other costs hamstrung efforts to improve affordability. The Federal Reserve hiked interest rates earlier this year, and kept them steady in its most recent meeting. Minutes from the Federal Open Market Committee in recent months show that leaders are worried that inflation is stickier than expected and that the conflict with Iran will continue to drive up costs.
Vance said in his post that it was "sound" political advice to call for a diplomatic solution to the Iran conflict. He also indicated that he could be open for change to the controversial immigration enforcement policies that have deeply affected the housing market and home construction.
"I'm open to the idea that we should change enforcement—by focusing more on businesses that hire illegal labor, for instance," Vance said in the post. "But anyone pushing amnesty is lying to you."
Democrats take aim at affordability
Meanwhile, Democratic leaders said in a press conference on Wednesday that they would focus on affordability in the coming term.
"We're going to fight hard for the heartland of America," New York Rep. Hakeem Jeffries, who is likely to become the new Speaker of the House, said on Wednesday. (Kevin Dietsch/Getty Images) New York Rep. Hakeem Jeffries, who is likely to become the new Speaker of the House, repeatedly avoided discussing Trump. Instead, he said his focus was on "affordability and accountability."
"We know we have to undertake, with the seriousness of purpose, a relentless effort to make life more affordable for everyday Americans," Jeffries said. Later he added, "We have been focused, relentlessly, on dealing with the affordability crisis and driving down the high cost of living."
Massachusetts Rep. Katherine Clark, who is currently minority whip but stands as a contender to become House majority leader, said that could include efforts to roll back the president's tariffs, which have driven up the cost of many homebuilding materials and household goods.
Jeffries said the House Democratic Caucus will convene next week and lay out a clear plan for what to do next. But neither he nor Sen. Chuck Schumer had heard directly from Trump on Wednesday.
NAR calls for bipartisanship
The National Association of Realtors®, in a Wednesday statement, called for more progress on housing.
“Regardless of which party controls Congress, NAR’s priorities remain the same: increasing housing supply, improving affordability, protecting property rights and expanding access to homeownership," NAR said. "Our research shows that 85% of Americans believe homeownership is part of the American Dream, underscoring why housing must remain a priority for lawmakers on both sides of the aisle."
RPAC-supported candidates won in at least 325 races, and a number of ballot initiatives this year involved housing-related issues. NAR also noted the bipartisanship of the 21st Century Road to Housing Act, the housing package aimed at making it easier to build homes. Congress passed it this summer with large majorities from both parties.
"We will continue building on that momentum, working with REALTOR® champions and real estate allies in both parties to advance commonsense solutions that bring more homes to the market and help more Americans achieve the dream of homeownership," NAR said.