How Tax Reform can Improve Home Affordability
According to a national 2016 How Housing Matters Survey, commissioned by the MacArthur Foundation, 81 percent of respondents believe housing affordability is a problem while 60 percent believe it’s a serious problem.
Young adults, specifically with student loan debt, also view home affordability as an issue. In a survey conducted by the National Association of Realtors (NAR), half of all student loan borrowers responded that they expect to be delayed from purchasing a home by more than five years.
While possible solutions to housing affordability range from increasing housing tax credits, to expanded housing support through federal intervention, to refinancing student loan debt or rewrite mortgage underwriting guidelines, a better solution with a longer term impact is reforming the tax code.
Pro-growth tax reform that simplifies and lowers individual, business, and investment tax rates has the potential to grow the economy by 15 percent over the next 10 years, increasing the average family’s wages by 10 percent, or $5,000 for a family earning $50,000 a year.
Enacting special carve outs or offering temporary patchwork solutions do not solve the root of the problem, which is economic growth. By prioritizing tax reform, Congress can create an environment where more individuals and families can get a quality job, save, invest, and afford a house that’s right for them.