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.”
Advertisement
Related Stories
Affordability
How Much Income Do First-Time Buyers Need to Afford the Average Home?
The median-priced home is unaffordable in 44 of the 50 largest U.S. metro areas
Affordability
What Is the Relationship Between Urban vs. Suburban Development and Affordability?
A new paper from Harvard's Joint Center looks at whether expanding the supply of suburban housing could, in turn, help make dense urban areas more affordable
Market Data + Trends
10 States Where Home Insurance Rates Have Risen the Most
Responding to the increasing number of natural disasters, insurers are hiking prices, with some states bearing the brunt more than others