A majority of recently surveyed homeowners say that changing homeownership tax incentives would restrict their mobility and cause them financial strain, according to new data from the National Association of REALTORS®’ fourth-quarter Housing Opportunities and Market Experience survey.
Proposed tax bills currently in the House and Senate could “undercut the incentive of owning a home and would have a detrimental effect on many homeowners’ financial situation and future desire to move,” NAR states on a release about the survey’s findings.
The current House and Senate bill weaving its way through Congress differs in content, but includes a call to limit the mortgage interest deduction on new mortgages and eliminate it outright for second mortgages and new home equity lines of credit. The bill also contains potential implications for the capital gains exclusions on the sale of a principal residence and caps on property taxes.
Eighty-five percent of the homeowners surveyed by NAR say they would deduct both mortgage interest and property taxes if they bought a new home. Forty-eight percent of homeowners surveyed say that if changes to the tax code are made they would experience financial strain due to the changes. Also, 30 percent say they would then be reluctant to move.
“Homeownership is an aspirational goal for millions of Americans, but getting there isn’t always easy,” says NAR President Elizabeth Mendenhall. “Middle-class families count on tax incentives like the mortgage interest deduction and the state and local tax deduction to make homeownership a more affordable prospect. REALTORS® will continue to advocate for these and other important provisions as the tax reform debate continues.”
NAR’s full findings from its fourth quarter HOME survey will be released Dec. 18.
Source: National Association of REALTORS®
