Biden’s Tax Credit Plan for Housing Draws Attention in Middle Tennessee

According to WKRN, during his recent State of the Union address, President Joe Biden proposed two tax credits to aid first-time homebuyers and address the dominance of institutional investors in the housing market. The first Biden’s tax credit, amounting to $400 per month for two years, aims to assist individuals purchasing their first homes or seeking to upgrade. Additionally, a $10,000 credit is proposed for middle-class families who sell their starter homes to owner-occupants instead of investors. However, local realtor Jeff Checko from the Ashton Real Estate Group of RE/MAX Advantage suggests that while these credits may provide temporary relief, they do not address fundamental issues like inflation and construction costs.

Checko emphasizes the need for a comprehensive solution to tackle housing affordability concerns. He highlights the impact of institutional investors on the housing market, expressing skepticism about the $10,000 credit’s effectiveness in enabling everyday buyers to compete with such investors. While the proposed tax credits offer potential benefits, their efficacy in achieving lasting change remains uncertain. Ultimately, the success of Biden’s proposal depends on congressional approval and its ability to address underlying challenges in the housing market effectively.