Overview
– The 2025 OBBBA Act raises the SALT deduction cap to $40,000, boosting affordability for high-tax coastal states like NY, CA, and FL.
– Tax savings from the expanded cap incentivize luxury real estate demand and municipal bond investments, with muni yields rising to 7.3% for high-income investors.
– 2024 municipal bond issuance hit $507.7B as investors capitalize on tax-exempt gains, while real estate markets in constrained coastal areas see surging demand.
– Strategic allocations combine real estate in high-tax suburbs with long-duration muni bonds, though risks persist as the cap reverts to $10,000 by 2030.
ainvest.com
by Harrison Brooks
Friday, Sep 19, 2025 2:04 am ET