Based on the current tax environment, our forecasts for house prices and rents show that buying a median-priced home is better than renting one for any holding period of six years or longer. By making the standard deduction more valuable, the tax bill working its way through Congress will change that calculation, and on the face of it could raise the net costs of buying by up to 30%. But, given most households will see an overall tax cut, and potential buyers are likely to put that saving towards their home, we doubt it will have a significant detrimental impact on the housing market.
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