The GOP Tax Plan Could Hit the Country's Most Expensive Housing Markets
- Values could fall 10% in expensive areas, Moody’s Zandi says
- Mortgage-deduction and tax caps may curb buying incentives
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Pricey U.S. housing markets, from the New York suburbs to California’s coastal cities, could take a direct hit under the tax-reform bill released by House Republicans.
Mortgage interest would be deductible on loans up to $500,000 instead of the current $1 million for couples filing jointly -- weakening the incentive in high-cost markets where property deals often require large mortgages. The deduction would be rendered useless for many others as the standard deduction is doubled and state and local tax deductions are substantially downsized, diminishing the need to itemize.