The newly-signed tax law is causing some realtors and local officials to believe the changes may encourage more homebuyers to migrate to more affordable housing markets.
Some markets in North Carolina, Alabama, Nebraska, Indiana, and Tennessee may see a slight increase in their economies and home prices because of the bill. “They don’t get nailed by the elimination of the [state and local tax] deduction, but they do benefit in the change from the standard deduction and some of the manufacturers benefit from the lower marginal rates for businesses,” Mark Zandi, chief economist at Moody’s Analytics, told Realtor.com.
People are already migrating from high-cost states to lower-cost areas as home prices and rents in large urban centers skyrocket and it becomes easier for people to work remotely. The tax law is likely to accelerate that trend, economists said. Idaho, Nevada and Utah saw the largest percentage growth in population in the country from July 2016 to July 2017.
