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Economics

Housing Policy as a Driver of Intergenerational Wealth Inequality

Quick fact

In the United States, the homeowner mortgage interest deduction and the capital gains exclusion on primary residences deliver tens of billions of dollars in annual tax subsidies, with the largest benefits going to the wealthiest households—thereby turning housing policy into a machine that widens the wealth gap between generations.

Why this is interesting

You've probably heard that your parents' house is worth more than they paid for it. But did you know that government policies—not just luck or hard work—help determine who gets to build wealth from housing?