Elimination mortgage interest deduction increases homeownership

This seem paradoxical on the surface, but makes sense in this light:

Eliminating the mortgage interest deduction causes house prices to decline, increases homeownership, decreases mortgage debt, and improves welfare. Our findings challenge the widely held view that repealing the preferential tax treatment of mortgages would depress homeownership.

via Eliminating the mortgage tax deduction could boost homeownership at Marginal REVOLUTION