The impact of consumption-based, fundamental Federal tax reform on the housing market
has been a controversial and difficult topic. We employ a dynamic, numerical simulation
model of the aggregate housing market to augment our understanding of the key forces at
work in the short-run and over longer periods. This approach suggests that integrating the
short-run and long-term impacts of tax reform leads to the possibility that there will be
relatively modest impacts on the nominal values of existing housing. The results indicate that …