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.

And if you're considering property upgrades to maximize these benefits, our Home Support Team is ready. From painting to full remodels, our trusted network of partners helps you improve properties efficiently and cost-effectively while leveraging these new tax advantages.

Big Win for Estate Planning

The lifetime estate and gift tax exemption jumps to $15 million per person in 2026. That means more flexibility for families with significant real estate assets, a powerful tool for legacy building, succession planning, and wealth preservation.

At Amy Stockberger Real Estate, legacy isn’t just a buzzword; it’s a core principle. This move aligns perfectly with our mission of helping clients build big, juicy legacies that live on well beyond them.

Homeownership Just Got a Bit Sweeter

Homeowners get a few wins too:

SALT deduction cap increased to $40,000. While this is a bigger benefit in higher-tax states, it can still help South Dakotans who own property or have business interests in other states or who pay higher local taxes, giving them more flexibility and potential savings.
Mortgage interest deduction extended permanently. Homeowners can continue to deduct interest on up to $750,000 of mortgage debt, and the ability to deduct mortgage insurance premiums is also restored. This provides additional tax savings and makes owning a home more financially appealing.

But Let’s Be Pragmatic

While the OBBB delivers incredible opportunities, it doesn’t come without strings. The biggest concern? Potential upward pressure on the federal deficit could drive interest rates higher in the long run. This could raise borrowing costs for builders, buyers, and businesses alike.

At Amy Stockberger Real Estate, we’ve always operated with a service-first, lifetime support mindset. We don’t just help you transact today; we’re thinking 20 years ahead, making sure you’re set up to thrive no matter how the market pivots.

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