What Does The One Big Beautiful Bill Mean To Homebuyers, Homeowners, and Real Estate?

 


Here are the key provisions of the One Big Beautiful Bill Act (H.R. 1, P.L. 119–21) that touch on the real-estate market, followed by those most directly benefiting homeowners and home buyers:

I. New Laws Changing the Real-Estate Market

  1. State and Local Tax (SALT) Deduction Cap Raised

    • The annual SALT deduction cap is increased from $10,000 ($5,000 MFS) to $40,000 ($20,000 MFS) for 2025, phasing out for higher-income filers (AGI over $500,000 single/$250,000 MFS) and indexing up 1% per year through 2033 EisnerAmperInvestopedia.

    • PTET “workarounds” (paying SALT at the entity level) are restricted to passthroughs eligible for the QBI deduction starting 2026 EisnerAmper.

  2. Permanent Extension of Qualified Business Income (QBI) Deduction

    • Makes the 20% passthrough QBI deduction permanent and increases it to 23%, with a new, more gradual phase-out for high-income filers (replacing the old W-2-wage and capital-investment tests) EisnerAmper.

    • This change primarily affects real-estate businesses (developers, rental-property owners, REITs) rather than individual homeowners.

  3. Bonus and Section 179 Depreciation

    • Extends 100% bonus depreciation for qualified property (including many commercial and multifamily rental assets) through 2029 and increases Sec. 179 expensing limits (from $1 M/phase-out $2.5 M to $2.5 M/phase-out $4 M, indexed thereafter) EisnerAmper.

    • Encourages private investment in new rental housing and commercial development.

  4. Opportunity Zones & Low-Income Housing Tax Credit (LIHTC)

    • Launches a second QOZ program (2027–2033) with rural-area set-asides and streamlined basis-step-up rules to spur investment in underserved markets EisnerAmper.

    • Boosts LIHTC allocations: restores the 12.5% “9% credit” boost, lowers the bond-financing test, and adds up to 30% basis boosts for rural and tribal projects (2026–2029) EisnerAmper.

II. Provisions Benefiting Homeowners & Home Buyers

  1. SALT Deduction Increase

    • Raising the SALT cap to $40,000 means many homeowners in high-tax states (CA, NY, FL, etc.) can deduct much more of their property and state income taxes, effectively lowering their federal tax bills and enhancing after-tax cash flow for mortgage payments or new purchases AxiosInvestopedia.

  2. Mortgage Interest Deduction Made Permanent

    • The act permanently extends the reduced maximum acquisition-indebtedness threshold (up to $750,000 of mortgage debt, $375,000 MFS) for the home-mortgage-interest deduction (a TCJA provision set to expire end-2025) EisnerAmperFox Business.

    • Buyers continue to deduct interest on new and existing mortgages under today’s limits.

  3. Reinstatement of Mortgage Insurance Premium Deduction

    • The act brings back the deduction for private mortgage insurance (PMI) premiums (phased out after 2021), saving first-time and low-down-payment buyers on average $2,300/year in premiums Investopedia.

  4. Low-Income Housing Tax Credit Expansion

    • By increasing LIHTC supply, more affordable rental units will come online (or be preserved) — easing rental market tightness and freeing up owner-occupied homes, indirectly benefiting buyers by moderating prices Investopedia.

Bottom Line:
The headline wins for homeowners and home buyers are the expanded SALT deduction, the permanent mortgage-interest deduction, and the return of the mortgage-insurance premium deduction — all measures that directly reduce the cost of buying and owning a home.  If' you have time, lots of time you can read the One Big Beautiful Bill Act here 

About Between Two Doors
Between Two Doors is a podcast where I talk with Realtors about their journey, aiming to connect home buyers and sellers with agents on a more personal level. I ask “right brain” questions that go beyond transactions, focusing on the experiences, values, and passions that make these professionals great at what they do.

Listen to more episodes at: https://www.betweentwodoors.com

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