What are options to reform tax incentives for homeownership? Q.What are options to reform tax incentives for homeownership? A.Replacing the mortgage interest deduction with a first-time home buyers tax credit or a nonrefundable credit at a set percentage of interest would provide a homeownership tax incentive to more families, including those with lower incomes. Read more about What are options to reform tax incentives for homeownership?
How do tax incentives affect home values? Q.How do tax incentives affect home values? A.Research has shown that the dramatic reduction of incentives in the 2017 Tax Cuts and Jobs Act only slightly reduced home prices. Local supply and demand conditions, plus prevailing interest rates, play a larger role than tax incentives. Read more about How do tax incentives affect home values?
Do existing tax incentives increase homeownership? Q.Do existing tax incentives increase homeownership? A.Probably not. The US homeownership rate is lower than in many other developed countries that do not offer similar tax subsidies for homeownership. Beyond a base level, US subsidies mainly support larger homes and second homes. Additionally, evidence suggests that the subsidies raise housing costs, thus dissipating their effectiveness in helping people buy their own homes. Read more about Do existing tax incentives increase homeownership?