NEW YORK CITY—The Cushman & Wakefield March 2018 “Tax Reform in High SALT States” report focuses on effects of the Tax Cuts and Jobs Act in New York and California. Political leaders from states with high state and local taxes have expressed deep concerns. However, the report concludes the reform overall will reduce taxes even in those states. States with already low taxes such as Florida and Texas will get even more of a tax break.

“Our research is clear: the overall economies and commercial real estate outlooks of both high- and low-tax states and regions will benefit from tax reform,” says David Bitner, head of capital markets research, Cushman & Wakefield. “And while the legislation will likely have little impact on the vast majority of housing markets, we know that the impact on higher-income, higher-tax markets—like most of the major metro areas in California and in the region surrounding New York City—could be significant.”

However, Bitner says as home prices in those areas sharply increased over the past few years, the TCJA will simply slow the meteoric rise of sale prices, while stimulating growth in rental housing.