When national headlines start praising sweeping federal legislation as “beautiful,” I tend to pause and look past the slogans — especially when it comes to how it will affect homeownership in Spokane. The "One Big, Beautiful Bill"— signed on July 4, 2025, and hailed as a game-changer in Washington, D.C. — deserves a closer look to understand what it really means for homeownership here in the Inland Northwest.

On paper, the bill delivers several direct benefits for homeowners and would-be buyers:

• Mortgage insurance deduction is back, easing costs for buyers who don’t quite manage a 20% down payment.
• The state and local taxes (SALT) deduction cap jumps from $10,000 to $40,000, at least temporarily — a potential reprieve for buyers in high-tax areas.
• The Low-Income Housing Tax Credit (LIHTC) is expanded, helping fund over a million affordable rental units in the next decade.
• Opportunity Zones are permanent, and developers get new depreciation perks — good incentives for residential and mixed-use development.

These provisions aren’t small potatoes. They translate into real dollar savings for first-time buyers, improved affordability for renters, and fresh incentives for developers. That said, “mixed blessing” is the operative phrase here.

What works for homeownership

Mortgage insurance deduction is returning to the toolkit. For Spokane’s first-time buyers — many of whom are purchasing with Federal Housing Administration or low-down-payment conventional loans — mortgage insurance is a reality. Having that extra tax relief could mean the difference between qualifying for a home or staying in the rental market. It’s particularly meaningful here, where our median home price hovers around $420,000 and incomes haven’t kept pace with housing costs.

SALT relief is back, at least temporarily. While Spokane doesn’t face the same state and local tax pressures as states such as California or New York, the bump still matters. A married couple who itemizes could now deduct substantially more in property taxes, providing some relief for homeowners in higher-assessed neighborhoods or rural areas where large parcels carry significant tax bills.

LIHTC means more affordable rentals. Spokane needs more rental inventory across the board, but especially for those earning too much to qualify for subsidized housing yet not enough to afford market rents. The expanded LIHTC could help developers and nonprofits bring new units online, easing the squeeze that pushes many working families toward long commutes or out of the county entirely.

Opportunity Zones plus faster depreciation could give developers more confidence to build in neighborhoods needing revitalization, or to create mixed-use projects that combine housing with small business space. This matters for places like East Central Spokane or the North Monroe corridor, where targeted investment could lift both property values and community resources.

But the devil’s in the details

The standard deduction still looms large. The mortgage insurance deduction only helps if taxpayers itemize, and the standard deduction remains high — $29,200 for married couples filing jointly in 2025. Many middle-income households will see little benefit.

The SALT bump is short-lived. The $40,000 cap expires in 2030, reverting to $10,000. Unless extended, this could create a “benefit cliff” that surprises homeowners who have adjusted their budgets to account for higher deductions.

Cuts elsewhere could offset gains. While the bill delivers housing-related tax breaks, it also trims funding for Medicaid, SNAP, and education. Those cuts could indirectly impact housing stability, especially for lower-income buyers and families still recovering from financial setbacks.

Long-term debt questions remain. The bill’s cost is measured in the trillions, raising concerns about whether future Congresses will roll back housing incentives to close fiscal gaps. Such uncertainty makes long-term planning difficult for buyers, developers, and local governments.

Use the boost, but stay wary

Let’s be candid: any relief for homebuyers is welcome, especially amid our ongoing supply shortage and affordability crunch. But we must temper optimism with a healthy dose of skepticism. These benefits — while real — are constrained by time limits, income qualifications, and broader economic conditions.

Here’s where I think our community should focus:

1. Educate the first-time buyer. Local real estate agents, lenders, and community groups should be proactive in explaining the restored mortgage insurance deduction. Many buyers don’t realize this deduction exists or how to claim it — and the window to maximize its benefit may be shorter than expected.
2. Leverage LIHTC aggressively. Nonprofits, housing authorities, and private developers should collaborate now to apply for LIHTC allocations. The process is competitive, and those who act quickly will bring more affordable units to Spokane faster.
3. Plan for the sunset. Developers and planners should treat the SALT and mortgage provisions like a limited-time incentive. Build and buy while the math works — because in five years, the landscape could look very different.
4. Advocate for stability. With looming federal cuts, our state and local leaders should prepare to backfill critical housing and down payment assistance programs. This is where consistent advocacy in Olympia and Washington, D.C., will matter most.

The "One Big, Beautiful Bill" offers genuine opportunities for Spokane homebuyers and developers — especially through the mortgage insurance deduction, SALT cap relief, LIHTC expansion, and permanent Opportunity Zone incentives. These tools could help ease our supply constraints, improve affordability, and support more diverse housing options.

But the gains are not guaranteed. They’re tied to political will, economic stability, and our own readiness to act before temporary provisions expire. If we treat this bill as a short-term spark rather than a permanent fix, we can use it to make lasting progress — without being blindsided by its eventual limits.

So no, I’m not calling it “beautiful.” I’m calling it an opportunity wrapped in caution tape. And that means we’ve got work to do — together — here at home.

Karene Loman is a Realtor at Soar Homes and president of the 2,500 member Spokane Realtors association. She can be reached at (509) 990-2525 or at [email protected]