Correction: The mortgage amount for the buyer of a $1.2 million home was incorrectly listed as $9,600,000 in the table below. The correct amount is $960,000.
By Laurie Goodman and Edward Golding | Urban Institute
The recently passed Tax Cuts and Jobs Act represents the most sweeping change in tax legislation since the Tax Reform Act of 1986. We examined what these changes mean for the housing market and concluded that while most taxpayers will pay lower taxes, allowing them to save for a home more easily if they choose, the increased standard deduction means fewer taxpayers will itemize. The reduction in tax rates also suggests less of a benefit for those who do itemize.
The net result is that renting will look more attractive than homeownership to many Americans in 2018 and beyond.