See those donut holes? Inner-city areas with low rates of homeownership, low incomes (and thus fewer residents who itemize deductions), and relatively lower property values are receiving far less of America’s fattest housing subsidy — the mortgage-interest personal income tax deduction (see previous discussion) — than their better-off suburbs. The sprawl subsidies continue apace.
The bigger picture is that this is a subsidy that overwhelmingly benefits wealthy people who have expensive houses, and big mortgages to match — and thus benefits “coastal elites” more.
Map from the Pew Center on the States’ report “The Geographic Distribution of the Mortgage Interest Deduction” (PDF).