Ahead of President Trump’s first State of the Union address, analysts at Realtor.com reviewed the state of the U.S. real estate market in 2018.
Rising home prices and declining inventory remains the trend, affecting a generation of millennial would-be-buyers who can’t find appropriate housing. The newest changes facing the market are the effects of the tax legislation passed by Congress in late 2017. Both challenges could affect Republican and Democratic areas of the country in different ways.
Densely built urban and suburban areas on the coasts and states like Illinois, which tend to vote blue, have higher sales price growth (9.1 percent) than red states (5.9 percent), which tend to be more rural. In addition, the new tax law eliminates interest deductions on mortgages over $750,000, affecting 2.5 percent of mortgages in blue states and only 0.4 percent of mortgages in red states.
Advertisement
Related Stories
Remodeling
Home Renovation Trends Report Shows Increase in Project Spending
A recent Houzz survey finds that the median spend for kitchen and primary bath projects jumped in 2022 and increased again in 2023
Trends
These Design Trends Get the Thumbs-Down From Boomers
Whether it's garage doors dominating a home's façade, outdated smart home features, or walk-in closets off the bathroom, homeowners in their 60s, 70s, and 80s have opinions
Trends
New-Home Trends: Home Sizes Shrink Further and Personalization Has Power
The National Association of Home Builders' latest new-home trends report shows homebuyers prefer fewer square feet, more personalization, and more tech