How some of DFW's Biggest Companies are Benefiting from the Trump tax cuts - And how it affects Real Estate
The main effect of Trump's tax reform was to reduce the corporate tax rate from 35% to 21%. This is especially beneficial for the Dallas economy as many national and international companies are headquartered in the city. (Source)
For instance, AT&T gave employees a bonus as a result of the tax cut and even low skilled workers are experiencing wage increases.Southwest stated that the $1.4 billion in savings will be used to replace aging aircraft. A great example of this would be the case of Walmart where the starting wage increased to $11 an hour.
Texas-based companies who were struggling before the tax cut are getting much-needed breathing room while others who were financially stable are seeking to expand their workforce, increase pay, invest in new assets, and buy back shares.
How does this impact real estate? It’s clear that the tax reforms will especially benefit high skilled white collar worker. This will likely result in an increase in the average price per home due to the rise in discretionary income.