The “One Big Beautiful Bill” — recently signed into law on July 4, 2025 — is making waves in nearly every corner of the economy, and real estate is no exception. While headlines focus on tax cuts and spending battles, this sweeping legislation carries major implications for homeowners, investors, and agents alike.
As your local real estate expert, I’ve broken down the key real estate–related changes you should know about — whether you're buying, selling, or investing.
1. Major Wins for Commercial Property Investors
One of the biggest benefits of the bill is the permanent extension of 100% bonus depreciation. This allows investors to fully deduct the cost of qualifying property (like furniture, equipment, and even some real estate improvements) in the year it's placed in service.
Why it matters:
Commercial property owners can now realize significant upfront tax savings, making value-add or redevelopment projects more attractive.
Also included:
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Expanded Qualified Opportunity Zones (QOZs): More areas now eligible for preferential capital gains treatment
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Higher Section 179 deduction cap ($2.5 million): Better write-offs for property upgrades, vehicles, and equipment
2. Low-Income Housing Incentives Get a Boost
Affordable housing received a rare spotlight. The bill:
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Expands the Low-Income Housing Tax Credit (LIHTC)
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Increases tax-exempt bond allocations to states
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Encourages developers to convert unused commercial space into affordable units
Why it matters:
Expect more affordable housing developments, especially in suburban and transitional neighborhoods — a shift that could reshape local comps and create new first-time buyer opportunities.
3. Zoning & Infrastructure = Neighborhood Growth
The bill includes over $300 billion for infrastructure, with funds directed at:
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Transit-oriented development
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Broadband and road access in rural areas
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Water/sewer improvements that support new housing
Why it matters:
Neighborhoods near these investment zones may see property value increases and development booms — a goldmine for early investors or buyers with vision.
4. Tax Policy Changes That Affect Homeowners
Here’s where things get mixed for homeowners:
Mortgage Interest Deduction cap stays at $750,000
SALT (State and Local Tax) deduction cap raised to $40,000 through 2029
Estate tax exemption doubled to $15M per person ($30M per couple), indexed for inflation
Why it matters:
Higher-income homeowners — especially in high-tax states — stand to benefit the most. This could influence migration patterns and luxury home demand in states like New York, California, and New Jersey.
5. Estate & Gift Tax Changes = More Property Transfers
With the estate tax exemption raised to $15M per individual, wealthier families now have more flexibility to gift or transfer real estate assets without triggering heavy tax burdens.
Why it matters:
Expect more intergenerational transfers, family trusts, and real estate gifting strategies, especially among high-net-worth clients. Agents should be prepared to guide these conversations with tax and legal partners.
6. Section 1031 Exchanges: Still Intact (For Now)
The popular 1031 like-kind exchange rule remains unchanged — a relief to many real estate investors who rely on tax deferral strategies.
Why it matters:
This stability continues to make property swaps and investment rollovers tax-efficient, especially in a shifting market.
7. Potential Challenges: Affordability & Demand Gaps
Not all news is positive:
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While investors and high earners benefit, first-time buyers may face more competition for inventory
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Cuts to programs like Medicaid and SNAP could weaken lower-income renter markets, especially in urban cores
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Critics warn that rising national debt could trigger future inflation or rate hikes, impacting mortgage costs
Final Takeaway: Real Estate Pros Must Think Strategically
The “One Big Beautiful Bill” will reshape how people buy, sell, invest, and pass down real estate over the next decade.
For agents:
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Stay educated on tax law and zoning changes
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Partner with financial advisors and CPAs
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Know which neighborhoods will gain value from infrastructure dollars
For clients:
Whether you're a move-up buyer, retiree, or investor, now is the time to align your real estate strategy with the new rules of the game.
Need help navigating the new real estate landscape? I’m here to answer your questions and help you make smart, confident moves — no matter what this market throws your way.
