The "One Big Beautiful Bill" — What It Means for Real Estate, and Why You Should Care
Whether you were for it or against it, the One Big Beautiful Bill Act (OBBB) has officially passed. While it impacts many sectors, my big question is always: what does it mean for real estate? That’s my passion and my wheelhouse, so let’s break it down. While the headlines focus on politics, we’re focused on impact. The OBBB isn’t just another tax tweak; it fundamentally reshapes the playing field for how we buy, sell, invest, and build. In my world, that means big opportunities and a few big caveats. A Bold Boost to Affordable Housing First up: affordable housing. This bill supercharges the Low-Income Housing Tax Credit (LIHTC), increasing allocations by 12% and lowering bond-financing thresholds. Translation? Developers now have stronger incentives (and fewer barriers) to build more affordable units. Analysts expect this to add up to one million new affordable homes nationwide. For Sioux Falls, where we see steady population growth and a strong workforce influx, this is a game-changer. More affordable options mean more talent retention, more neighborhood stability, and ultimately, stronger economic growth. Opportunity Zones Just Became Permanent Remember Opportunity Zones? Previously set to sunset in 2026, they’re now here to stay, and then some. Investors can defer capital gains longer, and new rural-friendly provisions encourage development in underserved areas. For business owners and investors looking to scale or diversify, this is like hitting the tax strategy jackpot. We’ve already seen how transformative these zones can be for neglected corridors and downtown districts. Permanent status? Even bolder. Enhanced Tax Perks for Investors Real estate owners and investors are smiling right now. Why? - 100% bonus depreciation extended through 2029. - Pass-through QBI deduction increased from 20% to 23% permanently. - Section 179 cap raised to $2.5 million. These aren't minor tweaks. They're major cash flow accelerators, creating a strong runway for both small and large operators to reinvest, improve properties, and grow portfolios faster.