Impact of Tax Reform on Home Prices
The A. Gary Anderson Center for Economic Research at Chapman University recently released its 2018 forecasts for the U.S., California and Orange County. Dr. Jim Doti presented Chapman’s 40th anniversary economic forecast to business and community leaders at Segerstrom Center for the Arts. Following is an excerpt of Dr. Doti’s presentation.
The Republican-sponsored income tax reform would reduce the tax advantages of owning a home, leading to a decline in the amount a prospective buyer is willing to pay for a home. A recent study done jointly by Chapman’s Anderson Center for Economic Research and Hoag Center for Real Estate and Finance reported the impact of the proposed reform on the median home price for all California counties. Selected counties are shown in the table below. Similar to the study of California housing forecasts, the Anderson and Hoag centers have also analyzed the potential impact of the proposed tax reform on home prices in all Orange County cities. Select cities are shown in the chart at the top of this page.