The property tax deduction and the mortgage interest deduction have had an undetermined impact on the pricing of housing. The American home is now marketed as a dual purpose residence and tax shelter. One wonders if housing would be less expensive if the "tax shelter" component had never existed and by how much. 5%? 10%? $33 billion in tax savings by 35 million people means an average savings of less than $1,000. Given that rising house prices (along with rising student debt, medical coverage etc) are making it harder for young families to afford homes I doubt that our society has benefited from these tax deductions. I also doubt that the effect can be easily undone.