When the Tax Cuts and Jobs Act of 2017 passed, economists warned that it would have a dire impact on housing prices, especially in high-tax, high-cost metro areas. It was assumed that the new law would curtail home-buying incentives, reduce federal subsidies and lower values.

The worst-case scenario hasn’t materialized. Housing data is showing only small impacts from the law, contained to a few higher-taxed zip codes. National Association of Realtors Lawrence Yun noted in spring 2018 that “the market is saying, so far, there is not an impact.”

Experts suggest factors counteracting diminished federal home-buying subsidies might include an uptick in home-buying millennials, and tight supply. Still, economists caution the law could have a larger impact in regions with plentiful housing inventory or slower income growth.

As yet, however, “We haven’t seen buyers lower their price point,” Washington D.C. Realtor Anslie Stokes told the New York Times. “All buyers are aware of it, and they’re factoring it in. But they’re not changing what they want to do.”

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