The Mortgage Interest Deduction Tax Cut Does Not Encourage People to Buy Homes

What Five Easy Theses says about the mortgage interest tax deduction: It is far from obvious that the mortgage-interest deduction boosts the percentage of people who own their own homes. The homeownership percentage has not increased in close to forty years.Five Easy Theses

The mortgage interest tax deduction in action: The mortgage-interest deduction also gives people an incentive to borrow as much money as possible. It might even drive up home prices artificially, making homes less affordable for new buyers. Perhaps because of the effect on prices, the mortgage-interest deduction doesn’t even seem to encourage homeownership.FiveThirtyEight