President Donald Trump’s signature legislation, the “One Big Beautiful Bill,” is official. The domestic policy bill contains a wide-ranging package of tax and federal spending cuts that could impact everything from SNAP benefits to the housing market.
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Here’s a look at how the bill may impact the cost of homebuying and renting.
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The Bill Could Help Make Homes More Affordable
There are two ways the “One Big Beautiful Bill” may make housing more affordable — one is that it incentivizes developers to build more homes.
“One incentive for developers that is included in this bill is enhanced tax deductions for repairs and maintenance,” said Phil Crescenzo Jr., vice president of the Southeast Division at Nation One Mortgage Corporation. “Adding more supply with addition of housing developments could help with sale prices over time, allowing more options.”
It could also spur the development of more affordable housing projects, in particular.
“There is a mention in the bill to increase affordable housing substantially over the next 10 years, but the timing and impact is too early to predict,” Crescenzo said.
However, if you’re waiting for home prices to drop as an effect of the bill, you shouldn’t. Crescenzo does not think there will be immediate changes.
“I do not see immediate effects on housing because the main aspects of the bill will take time to develop,” he said. “Incentives for developers have a long-term positive effect, but not an immediate impact.”
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Over Time, Rent Prices Could Fall as Well
Because rent prices are often determined by supply and demand, Crescenzo believes that renters may also see some financial relief as well — though, once again, not immediately.
“Over time, if more affordable housing projects are initiated, it could have impact on the cost of renting,” he said, “but this will take time.”
Editor’s note on political coverage: GOBankingRates is nonpartisan and strives to cover all aspects of the economy objectively and present balanced reports on politically focused finance stories. You can find more coverage of this topic on GOBankingRates.com.
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This article originally appeared on GOBankingRates.com: How Trump’s ‘Big Beautiful Bill’ Could Impact the Cost of Homebuying and Renting
