yes, for the people in my area who do use this deduction, which is most recent-ish home buyers (since recovery of 2008 crash for sure) and these people are paying a larger, much larger, than national average percentage of take home on housing, so even though high salary "on the edge" a bit in their budgets, yes they are going to feel that pinch of a few hundred a month effect less take home due to the loss of this deduction, and since people buying in the expensive market, when they look at budget of the maximum amount they can possibly pour into a house payment, which is what they do, that calculation does take into account the money they dont spend in taxes due to this write-off. So, yes, without the write-off, they can afford that much less of a house price. Of course, in this area the prices are so speculative that not going up as fast will be a good thing ! And, so, it might slow down the rate of increase in prices, but in itself, would not make anyone lose money due to a dip in the increase of prices, their "investment" will just yield slightly less when they sell. But, those young families right on the edge will absolutely feel a budgetary pinch, and they will be vocal about htis, and likely already are being vocal about it to congressional rep's