12% only goes up to $45K for individuals (based on $90K for married couples). I doubt that would help single homeowners in New Jersey or New York very much if the goodies are eliminated.
It wouldn’t for now, but here’s a possibility: When we moved from California to Texas, we noticed how reasonable Texas house prices were, even in big cities. However, property taxes were confiscatory. In order to make prices affordable, I believe those heavy-handed taxes held down the price of the houses. People had to take into account their monthly tax burden to see how much house they could afford. So house prices stayed reasonable.
So perhaps over a few years, prices will adjust. They would have to. Especially since this decreased mortgage deduction is only on new sales.
Why should single homeowners in New Jersey and New York get special federal income tax breaks that the rest of the country don’t get?