The Republican tax law "isn't a positive" for housing because it "secretly" removed a subsidy for homeownership, top housing analyst Stephen Kim told CNBC on Wednesday.
While the cutting of the mortgage interest deduction to $750,000 from $1 million received a lot of attention, the nearly doubling of the standard deduction will also hit the housing market, he said.
"The vast majority of people who are currently itemizing their taxes will not do so anymore because they won't need to," the Evercore ISI analyst said in an interview with "Power Lunch."
"If you don't itemize your taxes, you don't qualify for the mortgage interest deduction, period. So this is sort of a backdoor way of removing a subsidy for housing that we've seen in this country for almost a century."