Rental housing changes : According to data shared by Zillow and NerdWallet , the average U . S . rent was $ 1,958 in January 2024 . This is + 29.4 % more expensive than before the pandemic declaration in March 2020 .
Rising Taxation Risks
The list of America ’ s hardest metropolitan regions areas to save money in is listed below :
1 . RiversideSan BernardinoOntario 2 . Los AngelesLong BeachAnaheim 3 . MiamiFort LauderdalePompano
Beach , FL 4 . New YorkNewarkJersey City ,
NYNJPA 5 . AtlantaSandy SpringsAlpharetta , GA
Sources : Forbes Advisor and KTLA
The top ten most difficult states to save money in can be viewed below :
Our federal government debt surpassed $ 34 trillion earlier this year . It ’ s now growing at a pace of an additional $ 1 trillion every 90 days , which is an annual new debt pace of $ 4 trillion per year . For comparison purposes , it took 10 years for the federal debt to increase by $ 2 trillion between 1980 and 1990 .
The White House is seeking to raise another $ 5 trillion in tax revenues starting next year in 2025 to help offset the increasing size of our budget deficits . For real estate investors , you and your tax advisors should stay focused on these proposals that may more than double the capital gains rate and possibly eliminate the 1031 taxdeferred exchange option , which helps to defer capital gains taxes over a much longer period of time .
If this 2025 budget proposal is enacted , California residents will be looking at upwards of a 59 % federalstate capital gains income tax rate starting in 2025 . It also may make significant negative changes to the " death tax " for heirs . Don ' t be surprised if Americans start selling assets here in 2024 on a larger scale to avoid these much higher capital gains taxes next year .
Additionally , the White House ’ s 2025 budget proposal includes the creation of a minimum tax equal to 25 % of an individual ’ s taxable income and unrealized capital gains for assets that weren ’ t even sold for certain higher income people , as per multiple sources including Quoth The Raven .
The combination of increasing all types of taxes ( state , federal , capital gains , and possible unrealized tax gains ), plus the potential elimination of the 1031 taxdeferred exchange for rental properties , will hurt real estate values at some point .
1 . California 2 . Hawaii 3 . Nevada 4 . Oregon 5 . Maryland 6 . Florida 7 . New York 8 . South Carolina 9 . Colorado 10 . Louisiana
Source : Forbes Advisor and KTLA
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