As prices of homes in the real estate market continue to rise, more and more Americans are choosing to rent than own a home. A new bill was proposed in hopes of providing tax breaks for renters, which could then lead to an increase in homeownership in the future.
The rising prices of houses being listed in the real estate market have led to an increase in the number of renters in the United States. As previously reported here on Realty Today, Americans are now choosing to rent than own a home.
Renting seemed to be a better option for households nowadays because of the increasing prices of homes and the stagnant wages. This drew concern among brokers and real estate agents, but it was taken as a good sign among investors because the latter could benefit from the increase in renters by turning their properties into apartments.
However, a recent report from Realtor.com seemingly offers hope for those who wish to save up on their down payment. According to the publication, a proposed bill hopes to provide tax breaks for renters.
"Renters should be able to share in the tax savings. This is a tax benefit that would go primarily to people who need it," said Democratic Rep. Alan Grayson.
According to Grayson, the tax benefit has only been provided to owners, but the same treatment is not being given to renters. Should the bill become a law, Grayson noted that this would level the playing field.
The publication further noted that 37 percent of households in the country were renters in 2015. About 49 percent of renters were found to be cost-burdened, or those who spent more than 30 percent of their paychecks for rent.
This tax break may also be a way to provide households with a way to save up money for the down payment. However, the chances of this bill being signed into law appear to be slim.
