“Uh, no. The national median home value is $200,000. Starter homes would be well south of that”
The people that live in the $100,000 homes don’t pay any taxes. The tax payers are the middle income folks and their homes are NORTH of $200,000.
This report states median price for new home sales is $300,000!
https://www.census.gov/construction/nrs/pdf/newressales.pdf
Are you talking about the median price for NEW homes across the country or the price of "a starter" home?
People that live in the $100K homes don't pay taxes? You are out of touch, my FRiend. I have friends that live in $130K homes that are making 6 figures (household). I am not sure where you live. But the cost of living must be pretty high. Either that or you are very wealthy and skipped the whole "starter home" part of the journey.
1) no - people that are renting don't pay taxes. Most people with a mortgage are paying taxes.
2) the link you have is the median home price for NEW homes which are less than 10% of the home market. It's no secret that builders are building at the higher end of the market this economic cycle. The median home price nationally is $200k.
3) The purchase price doesn't include down payments or paying down the mortgage over time. Even if you buy a $300k home, if you put 20% down you only owe $240k to start. But a couple making $40k isn't buying a $300k home, they are buying a $150k home and putting $30k down ($120k loan)
4) For the higher income earners, while your deductions go down, the standard deduction goes up $10k. Also, right now you hit the 15% early - now that goes down to 12%, and if you hit 28% or 33%, that goes to 25%. The only people that lose with the new plan are people with massive deductions in the top 2% of incomes.
Homes sold are not all new. In Chicago the average price for a sale in a good neighborhood does not exceed 270,000