BiggerPockets Daily What the "Big Beautiful Bill" Means For Real Estate
Jun 16, 2025
A massive new tax bill could dramatically reshape housing affordability and federal spending. Key changes include expanding the Low-Income Housing Tax Credit and altering SALT deductions. There are also lesser-known impacts like a tip and overtime tax exemption and repealed climate credits. The potential addition of trillions to the deficit raises concerns over mortgage rates and the economy. This sweeping overhaul has implications that could affect homeowners and the real estate market for years to come.
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LIHTC Expansion's Housing Impact
- The Low Income Housing Tax Credit (LIHTC) is set for a 12.5% boost and eased financing rules through 2029.
- This change could finance over 500,000 new affordable rental units by 2025, significantly impacting housing availability.
SALT Deduction Cap Increased
- The bill raises the SALT deduction cap from $10,000 to $40,000 for high tax states.
- This lowers effective housing costs and increases post-tax home equity in expensive areas.
Rent Algorithm Regulation Ban
- The bill controversially prohibits states from regulating rent-setting algorithms for a decade.
- This could allow companies like RealPage to continue AI-driven rent optimization despite lawsuits alleging price fixing.