How Eliminating SALT Deductions May Affect Housing Migration
One third of homebuyers will consider moving to a different state, if the Senate GOP tax plan passes, which would eliminate state and local tax (SALT) deductions.
A new survey of 900 homebuyers showed that respondents from California are most likely to move, (37 percent surveyed), if SALT deductions are cut. “The uncertainty of the tax reform bill is looming on our customer’s minds, and it has caused well-qualified clients who have found a home they like to hold off until the matter is resolved,” said Redfin agent Kalena Masching.
“Eliminating this deduction is analogous to pouring SALT on a wound for California buyers,” said Redfin chief economist Nela Richardson. “... Buyers are already confronting severe inventory shortages and high home price appreciation ... For many California buyers the solution may be to head out of state.”
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