I think the MID is valuable (in varying degrees) to a large segment of the US population (who have W-2 income of over $50K or high passive income which is taxable).
However, in many areas of the country, the MID is worth little to homeowners because their mtg balances are so low. In the vast areas of America’s midsection, where there is little housing turnover and property is handed down through families (mostly rural with farms and ranches), I don’t think the presence or absence of the MID really affects these citizen’s tax burden too much or would affect the resale value of these properties .
Just because a good portion of CA coastal residents may be highly encumbered with housing debt does not mean the bulk of residents in other regions of the US are.
And I don’t know what the percentage in SD County is of working homeowners in comparison to non-working homeowners. Assuming it is half and half and out of both of those groups of homeowners, 30% owe nothing on their homes (or too little to have any significant MID), then I am uncertain that eliminating the MID will have any significant effect on housing prices.
Perhaps it will on housing tracts that attract working families who are just starting out or in mid-career but not all housing across the board.
