OBBB: MORE AFTER-TAX CASH FOR SOME HOUSEHOLDS, MIXED SIGNALS FOR HOUSING
The One Big Beautiful Bill, signed July 4, 2025, locks in much of the 2017 tax framework and raises the State and Local Tax (SALT) cap for many taxpayers, while adding a patchwork of new provisions. For housing, the near-term effect is nuanced. Some households see a little more after-tax income, while the bill’s deficit impact and program cuts could be macro headwinds.
WHAT TO EXPECT
Expect a mild boost to mid- and upper-income purchase power in high-tax states, but not enough to overcome supply shortages or construction cost pressures on its own.
50-YEAR MORTGAGES: MORE SIZZLE THAN STEAK (FOR NOW)
The floated idea of 50-year, government-backed mortgages would trim monthly payments but slow equity build. It may nudge prices higher by stretching demand if not paired with plans for supply expansion. Industry reaction is skeptical, and even supporters frame it as a niche tool.
WHAT TO EXPECT
Over the next year, treat it as a headline risk more than a base-case product you can bank on.
PAGE 73
Powered by FlippingBook