Overview
Tax Policy Developments Affecting Real Estate
A major topic during the second quarter was the passage of legislation containing several provisions relevant to real estate investors.
The legislation included the restoration of 100% bonus depreciation, expanded SALT deduction limits, additional support for Low Income Housing Tax Credit (LIHTC) programs, Opportunity Zone enhancements, and higher standard deduction thresholds.
Housing Affordability Continues to Influence Demand
Housing affordability remained one of the most important market trends discussed during the quarter.
Higher home prices, larger down payment requirements, and elevated financing costs continued making homeownership more difficult for many households. As a result, demand for rental housing remained strong across numerous markets.