How the One Big Beautiful Bill Could Shake Up Orange County Real Estate

By Danae Aballi-Mecham

Danae Aballi-Mecham is a long-time real estate industry veteran. She has worked in various positions in the industry having grown from an independent real estate agent to running a team of 5 top producing agents.

There’s a tax bill called the “One Big Beautiful Bill Act” moving through Congress right now, and it could create significant changes in our local housing market. It already passed the Senate and is now heading to the House. If it goes through, it could impact homeowners, buyers, and investors across Orange County. I’ve been watching it closely, and here’s what you need to know.

The SALT deduction cap could jump to $40,000. Right now, the federal SALT deduction limit is $10,000. That’s the most you can deduct for state and local taxes, including property taxes. In Orange County, that barely scratches the surface. Many homeowners pay between $20,000 and $30,000 in property taxes each year.

This bill proposes raising the deduction cap to $40,000. That change would allow more homeowners to write off what they’re paying, not just a fraction of it. Buyers would also benefit by seeing a better long-term tax outlook, which can be a deciding factor when committing to a purchase.

Lower federal tax brackets could stay in place. Another part of the bill would maintain the current lower tax brackets. This could increase take-home pay for many families. That added income could improve mortgage qualification and monthly affordability. Increased buying power usually leads to more market activity. More people could enter the market, driving competition and supporting home values. This is especially important in higher-priced areas where affordability remains a challenge.

100% bonus depreciation could return for investors. The bill also includes a return of full first-year depreciation for investment properties. If you’re renovating or upgrading a rental property, this allows you to deduct the entire cost in the year you incur it. This would be especially appealing in markets like Newport Beach, Dana Point, and San Clemente, where investors look for vacation homes and fix-and-flip opportunities. A surge in investor activity could lead to increased competition for properties and affect local pricing.

The bill has been passed, which opens new possibilities for current homeowners and future buyers. Tax savings, higher income, and investor incentives could all shape the market this year. If you’re wondering how this could affect your plans to buy, sell, or invest, you can call or text me at (949) 216-8565 or email me at danae@danaeaballi.com. I’m here to help you make smart real estate decisions.