The U.S. Senate passed tax reform legislation over the weekend that the National Association of Realtors® (NAR) believes puts home values at risk and dramatically undercuts the incentive to own a home.
NAR President Elizabeth Mendenhall offered strong concerns over the bill and said Realtors will continue to work with members of the House and Senate as the process moves forward into a conference committee to reconcile differences between the two versions of the bills.
"The tax incentives to own a home are baked into the overall value of homes in every state and territory across the country," says Mendenhall. "When those incentives are nullified in the way this bill provides, our estimates show that home values stand to fall by an average of more than 10 percent, and even greater in high-cost areas."
Speaking for NAR, Mendenhall says that Realtors favor tax cuts done "in a fiscally responsible way," and that current efforts in Congress produce some winners. But "millions of middle-class homeowners would see very limited benefits, and many will even see a tax increase. In exchange for that, they'll also see much or all of their home equity evaporate as $1.5 trillion is added to the national debt and piled onto the backs of their children and grandchildren.
"That's a poor foot to put forward, but this isn't the end of the road," she adds. "Realtors will continue to advocate for homeownership and hope members of the House and Senate will listen to the concerns of America's 75 million homeowners as the tax reform discussion continues."