Changes to U.S. tax policy could make the dream of homeownership more affordable to many Americans, according to a new study by researchers at the Johns Hopkins Carey Business School. Using a new dynamic lifecycle model to analyze housing demand and various tax policies, the researchers predict replacing tax deductions for mortgage interest with refundable mortgage interest credit would increase homeownership rates by 5.9%. In addition, these gains in home ownership would be concentrated among low- and middle-income households and young home buyers.
Tax policy changes could make homeownership a reality for more Americans
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