Consumer views on tax reform impact on housing split along partisan lines

Democrats generally said the tax law made it more difficult to buy a home

By Francis Monfort

30 May 2018

Consumers’ opinions about whether the tax reform law enacted in December made it easier for Americans to buy a home are generally split along partisan lines, according to the most recent Zillow Housing Aspirations Report.

Zillow found that self-identified Republicans held a more favorable outlook, with them more likely to say the law made it easier to buy a home. Meanwhile, Democrats generally said the tax law made it more difficult to buy. The report is based on a semi-annual survey of 10,000 Americans in 20 large markets nationwide.

The survey revealed that 45% of Democrats view purchasing a home as more difficult under the reforms, while 42% of Republicans held a favorable view. Zillow said that the results were not necessarily surprising, as the tax reform law was drafted and passed primarily by the Republican majority in Congress and signed by a Republican president.

Zillow also found that a plurality of both Republicans (42%) and Independents (45%) think that the law will have no effect on the ease of buying a home.

One group bucked the partisan trend. Zillow found that young, relatively affluent, Democratic homeowners were more likely to have an optimistic view of the law’s effects on home buying. Among Republicans, 17% said that new law would make buying a home more difficult. While these consumers were similar to other Republicans in terms of age, income, and homeownership status, they tended to live in high-tax and traditionally Democratic-leaning states such as California, New York, New Jersey, and Illinois.