I agree with Nick... if the goal is to increase homeownership rates, it would certainly come from the mid to lower income ranges and therefore on the lower end of the spectrum for home values. At those levels, its rare for someone to itemize. I do however agree with your assessment that the interest deduction helps landlords which does impact housing prices. But landlording IS a business and interest deductions are provided to businesses so its hard to see that deduction eliminated.
My opinion is that in a nation of over 350 million people, 60-65% homeownership rates are perfectly fine. What I would like to see more of is single family 'for rent' developments with long term leases like 10, even 15 years. Renters don't improve properties because their tenancy can end at the end of every lease term. By providing long term leases - with cost of living increases - landlords could expert their tenants to not only take better care of the properties but also to make capital improvements here and there. Good for the landlord, the tenant, AND the neighborhood.
I agree with Nick... if the goal is to increase homeownership rates, it would certainly come from the mid to lower income ranges and therefore on the lower end of the spectrum for home values. At those levels, its rare for someone to itemize. I do however agree with your assessment that the interest deduction helps landlords which does impact housing prices. But landlording IS a business and interest deductions are provided to businesses so its hard to see that deduction eliminated.
My opinion is that in a nation of over 350 million people, 60-65% homeownership rates are perfectly fine. What I would like to see more of is single family 'for rent' developments with long term leases like 10, even 15 years. Renters don't improve properties because their tenancy can end at the end of every lease term. By providing long term leases - with cost of living increases - landlords could expert their tenants to not only take better care of the properties but also to make capital improvements here and there. Good for the landlord, the tenant, AND the neighborhood.
The majority of taxpayers don't itemize deductions, so I'm not sure how this secret really works.