Estimates the federal income tax subsidy and the associated deadweight loss to both owner-occupied and rental housing. Focuses on the tax subsidy after passage of the Tax Reform Act of 1986 and adds more detail than other work in this literature regarding the distribution of the subsidy among...

Elaborates on the major disturbances to income producing real estate markets in the 1980's and describes a simple model that can be used to illustrate the effects of such disturbances. Interprets developments in the multifamily and office markets and considers the owner-occupied housing market.