Research

Housing Tax Deductions and Single-Family Housing Demand

The effect of mortgage interest and local property tax deductions upon single-family housing demand in the U.S. is examined for the 1994-2003 period. A multi-equation model is developed to simulate the impacts from partial and complete elimination of the deductions. The results indicate that the deductions have moderate effects on housing demand. Complete elimination of the deductions could result in as much as a 12 percent decline in the annual number of single-family housing units that are purchased.

Publication Information
Article Title: Housing Tax Deductions and Single-Family Housing Demand
Journal: International Journal of Applied Economics (2006)
3(1)
Author(s): Schmidt, James R;  Ghosh Roy, A.;  Anderson, John E
Researcher Information
    
Schmidt, James R
Schmidt, James R
James W. & Helen A. Hanson College Professor of Economics
Expertise:
  • Econometrics
  • Business Statistics
Economics
CoB 525 H
P.O. Box 880489
University of Nebraska-Lincoln
Lincoln, NE 68588-0489, USA
Phone: (402) 472-2315
Fax: (402) 472-9700
jschmidt2@unl.edu
Anderson, John E
Anderson, John E
Baird Family Professor of Economics
Expertise:
  • International – Europe, Central Asia, China
  • Property Taxation
  • Tax Policy
  • Urban Economics
  • Public Finance
Economics
CoB 525 N
P.O. Box 880489
University of Nebraska-Lincoln
Lincoln, NE 68588-0489, USA
Phone: (402) 472-1190
Fax: (402) 472-9700
janderson4@unl.edu