U.S. Senate Passes Final Tax Bill: What the New Law Means for Real Estate Investment, Housing, and Florida Buyers in 2025

On Tuesday, the U.S. Senate approved the long-anticipated One Big Beautiful Bill, a historic tax reform package poised to reshape the U.S. real estate landscape. Praised by the National Association of REALTORS® (NAR) and widely supported by housing advocates, the bill delivers major wins for homeowners, investors, and developers—particularly in high-growth states like Florida.

As the House prepares to give final approval and the bill heads to the President’s desk, it is essential to understand how these changes will impact real estate, housing affordability, and investment opportunities such as Archer Place in Gainesville.

The Bill at a Glance: A Transformative Package for Real Estate

The One Big Beautiful Bill spans over 880 pages, making it one of the most comprehensive tax reform efforts in recent history. With real estate representing nearly 19% of the U.S. GDP, lawmakers placed a strong emphasis on protecting and stimulating this crucial sector.

Key elements of the bill address both individual tax relief and investment incentives, positioning real estate as a cornerstone for economic growth.

Key Tax Changes for Real Estate Investment in 2025

The bill delivers NAR’s top legislative priorities:

• Permanent lower individual tax rates – Families and homeowners will retain more income, improving affordability and spending power.
  
• Permanent qualified business income deduction (Section 199A) – Essential support for independent real estate agents, brokers, property managers, and small real estate firms.
  
• Temporary quadrupling of the SALT deduction cap – The cap rises significantly for five years, aiding homeowners in high-tax states such as New York, California, and Illinois.
  
• Protection of 1031 like-kind exchanges – A major win for property investors, allowing tax-deferred exchanges to grow real estate portfolios strategically.
  
• Permanent mortgage interest deduction – Preserves a long-standing incentive for homeownership that supports first-time buyers and current owners alike.
  

Additional Provisions That Shape Housing and Development

• Low-Income Housing Tax Credit (LIHTC) expansion – Expected to spur the development of over 100,000 affordable housing units annually, addressing critical shortages in both urban and rural areas.
  
• Child Tax Credit boost to $2,200 – With inflation indexing, this measure helps families balance housing costs and other living expenses.
  
• Estate and Gift Tax Threshold at $15 million – Safeguards multi-generational property ownership and wealth preservation.
  
• Immediate expensing for industrial facilities – Encourages the construction and upgrading of buildings tied to manufacturing, logistics, and agriculture, potentially benefiting regional economies.
  
• Opportunity Zones strengthened – Renewed focus on driving capital toward underserved communities, including parts of Florida’s interior and rural South.
  
• No increase in top tax rate – The removal of the proposed 39.6% rate preserves lower rates for individuals and families.
  

How Florida’s Real Estate Market Will Benefit

Florida is uniquely positioned to capitalize on these legislative changes.

Migration from high-tax states such as New York and California is expected to accelerate, as Florida’s lack of a state income tax combined with the enhanced SALT deduction relief offers new tax advantages.

Strong demand for rental housing continues in cities like Gainesville, where student housing occupancy exceeds 95 percent. Developments like Archer Place are ideally placed to meet this demand, offering stable returns and long-term value.

Foreign investment is also likely to increase. According to NAR’s 2024 data, Florida accounted for nearly 24 percent of all foreign real estate purchases in the United States. The preservation of 1031 exchanges and improvements to Opportunity Zones enhance Florida’s appeal to international buyers.

Spotlight on Archer Place: A Model for Smart Investment

Archer Place is well aligned with the bill’s incentives. Its location within a designated Opportunity Zone provides potential tax deferrals and reductions for qualifying investors. The project benefits from Gainesville’s robust rental market, driven by a growing student population and expanding local economy.

As a mixed-use, Archer Place offers a rare combination of tax efficiency, consistent rental demand, and long-term appreciation potential. It represents an ideal vehicle for investors seeking to capitalize on the new tax environment.

Public Support for the Bill’s Housing Provisions

The One Big Beautiful Bill reflects the priorities of the American public. Polling conducted by the National Association of REALTORS® in May 2025 found:

• 92 percent of voters support tax-free savings accounts for first-time buyers.
  
• 91 percent support preserving the mortgage interest deduction.
  
• 86 percent favor keeping lower individual tax rates.
  
• 83 percent back the 20 percent small business deduction.
  
• 61 percent support higher or eliminated SALT deduction caps.
  

This broad support helped secure these provisions in the final legislation.

Long-Term Impact on Housing Affordability and Investment Strategy

Experts predict that the bill will:

• Encourage new home construction, helping to ease supply shortages.
  
• Make tax planning more favorable for real estate investors.
  
• Support economic development in underserved areas through strengthened Opportunity Zones.
  
• Stimulate foreign and domestic capital flows into U.S. housing markets, with Florida standing out as a top destination.
  

These factors combined create a stronger, more stable environment for both individual homebuyers and large-scale investors.

FAQs About the One Big Beautiful Bill and Real Estate

What’s the timeline for the bill’s provisions?
Most measures will take effect in 2025, with Opportunity Zone updates and SALT changes expected to roll out immediately upon enactment.

How will this affect first-time homebuyers?
The combination of mortgage interest deduction retention, higher child tax credits, and potential new savings vehicles will make entering the housing market easier.

Do these changes apply to foreign investors?
Yes. Provisions like 1031 exchanges and Opportunity Zones are available to foreign investors purchasing U.S. real estate, further enhancing Florida’s appeal.

What makes Archer Place a strategic investment under this bill?
Its location in an Opportunity Zone, high rental demand, and alignment with tax-efficient strategies like 1031 exchanges position Archer Place as a smart choice for investors seeking both stability and growth.