It should be phased out. I am not for it and yes I do benefit from it. It has been a calculation into home buying for generations. To yank it right away will undercut the housing market and will find a lot of people losing their homes. We do not need a recurrence of the housing bubble.
Allow home owners to keep it as long as they are in their current home. Home values will still come down but at least this gives people time to have their homes reassessed.
MOST people won't be affected by it.
They'll actually do better by claiming the standard deduction. So they'll actually have more money in pocket.
As far as the housing market goes, it might have a SLIGHT down turn.
Now, instead of viewing the house as a tax write off, they'll see it strictly as property. No artificial influence to buy.
The people who do better claiming the standard deduction will actually be able to afford the same house or maybe more.
The only people truly affected, are those with numerous itemizations, including their house, that put them over the standard deduction limit. That's a very small percentage (comparatively).
If they lose the deduction when they move, they won’t move and home sales will crash.
I retired from new home sales. Part of the sales pitch was to explain the tax deduction to first time home buyers. But, if you don’t have enough deductions overall you can’t take the deduction anyway. I found that out after I bought my first home.