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loans up to just $750,000 down from $1 million, for money borrowed after Dec. 14, 2017. Meanwhile state and local taxes were squeezed even more dramatically. While previously unlimited, taxpayers will now be allowed to deduct a total of $10,000 from their federal tax bill, including income, property, and any other taxes owed to state and local governments. The double whammy means homeowners in coastal states like New York and California could be hit hard, since home prices ($1.4 million average in Manhattan; $1.3 million in San Francisco) and taxes (more than 10% of income in both places) are both high. Homeowners who live in less expensive houses or in lower-tax states won't necessarily fret the new caps. That's because the value of the new, doubled standard deduction will outstrip housing costs they otherwise would have written off. (The share of homeowners who itemize is expected to fall to 14% from 44%, according to Zillow.) Even for taxpayers who end up with lower bills, however, the law still poses a financial risk. With some homeowners losing deductions and other no longer needing them, some economists worry the rules could sap incentives for Americans to buy homes, hurting home prices. One recent study by the Urban Institute found that under the new tax law, so- called break-even rents—the monthly amount above which renters are better off becoming homeowners—jumped significantly for upper-middle-class and wealthy taxpayers. Under the old rule, for instance, for a typical three-person family earning $75,000, owning became more financially advantageous once the family's monthly rent exceeded $893. Under the new law that number climbs 14%, to $1,017. For wealthy families that difference can be even more dramatic. For a family making $300,000, the break-even rent jumps 32%, from $2,757 a month to $3,631. So what if you're a homeowner worried about values? The National Association of Realtors says the change isn't likely to send home prices downward, but the group is predicting slower growth for 2018 of 1% to 3%, down from 5% to 7%. TAKEAWAY Homeowners take a hit You may still see lower taxes House price growth could slow