How Trump Changed Housing Forever

^{July 14, 2025 | 3 Minute Read}

Now that Trump’s massive tax bill has been signed into law, real estate investors are asking: What’s in it for us?

Industry leaders from the National Association of Home Builders to the National Association of Realtors are praising the law as a win for real estate. Many investors are calling it a “windfall” and a “game changer.” Here’s a breakdown of the key provisions investors need to know—and how they might impact your investment strategies.

100% Bonus Depreciation Is Back—and Permanent

One of the biggest wins for investors is the permanent restoration of 100% bonus depreciation. This allows investors to break down a property into components like HVAC systems, appliances, and land improvements—and write off their full cost in the first year. That can mean huge upfront tax savings, sometimes tens of thousands of dollars.

“This is a game changer, especially for house flippers,” says Stephen Keighery, founder of Home Buyer Louisiana. “The ability to offset flipping income by renovating rental properties is accelerating my buying decisions—and I’m hearing the same from many investors.”

SALT Deduction Caps Increased from $10K to $40K

Investors in high-tax states like New York, California, and New Jersey will appreciate the fourfold increase in the SALT deduction cap through 2029. This means more tax savings on property taxes—boosting cash flow and improving deal math.

Bonus tip: Owning through LLCs or S corps may allow investors to sidestep the SALT cap entirely via pass-through loopholes, increasing incentives to acquire luxury homes or commercial properties in high-cost markets.

Expanded Low-Income Housing Tax Credits

Affordable housing investors will see benefits too, as caps on Low-Income Housing Tax Credits are raised. This expansion is projected to produce or preserve over 1 million affordable rental homes by 2035. Additionally, states can designate new Qualified Opportunity Zones that provide tax breaks for developing or improving low-income housing—opening new avenues for tax-advantaged investments.

Mortgage Insurance Deductions Restored

The reinstatement of deductions on mortgage insurance premiums (usually required when putting less than 20% down) offers additional savings for investors acquiring properties with low down payments. Previously, taxpayers saved an average of $2,364 per year from this deduction.

Infrastructure Spending Spurs Land and Development Opportunities

Federal infrastructure funding included in the bill is already reshaping investor strategies. Investors are eyeing parcels currently zoned for agriculture near planned developments, anticipating rezoning and value appreciation.

Rising Interest Rates: A Double-Edged Sword

While the tax bill offers several advantages, investors remain cautious about rising inflation and high interest rates, which could offset some gains.

Inflation and tariffs may increase building costs. You may want to consider pivoting towards rental properties, which tend to keep pace with inflation and provide a hedge.

Many investors are still waiting for rates to drop before refinancing or buying.

The Great Wait for lower rates continues.