The Tax Cuts and Jobs Act (TCJA) made some important changes on how property deductions on real estate are handled. First, a new limit was placed on itemized deductions. Now, married couples can only deduct a maximum of $10,000 on their property taxes, which may be bad news for those living in areas with high property tax or those who own multiple or expensive properties. What this means for Idaho? With the 13th lowest average property tax in the nation, Idaho is now more desirable than ever to those looking to emigrate from higher-tax States like Washington, Oregon, or California. managers for their own residences.
Next, for businesses and big spenders, the TCJA increased the deduction limit on qualifying property expenditures to upwards of $1.02 million in 2019, making this the time to invest. Companies already eyeing Ada County and beyond as their next stop may now be more than willing to pull the trigger. Despite the break in trend, with more houses on the market at a lesser cost, nothing indicates a slow-down in the growth of a metropolitan area Forbes ranked America’s #1 Fastest-Growing City in 2018. January’s data seems to indicate the eye of the storm rather than a change in its direction. Investors, take note. Idaho residents, batten down the hatches.
Recent data showed a streak-breaking abundance of homes on the market in Ada County accompanied by a fall in prices. While it may be too early to tell if the month of January was the beginning of a new trend or simply a fluke in the system, an outlier in an otherwise steepening market, factors across the nation are contributing to the sense that Idaho is only increasing in desirability. A report released by Intermountain Multiple Listing service showed that for the first time in 51 months, there were more homes listed on the Ada County market than in the same month of the previous year. Meanwhile, January also showed an uncharacteristic drop in the median prices of all Ada County homes sold. The 2% decline in selling prices may seem marginal, but considering that median percent change over the entirety of 2018 came in at just below a positive 14%, a drop like this could have a significant impact on annual growth.
Parents Demand Quality Education
To top it all off, the Idaho Legislature budget committee recently approved $1.9 billion for spending in public schools. Families put off by making a move to a State that earned a D+ in the Education Week Research Center’s 2018 report may now be encouraged by these recent developments, as this new budget aims to raise teacher salaries and promote literacy for at-risk readers, in theory creating a more desirable Idaho for teachers and students alike.