Key Details:
- NAR took to Capitol Hill to push for key housing legislation, including the More Homes on the Market Act, which could double capital gains tax exclusions for homeowners.
- This week’s Real Word podcast breaks down the impact of these proposals, with Byron Lazine highlighting why this bill has the best shot at boosting housing supply.
- Other bills up for reconsideration include the Revitalizing Downtowns and Main Streets Act, the Neighborhood Homes Investment Act, and the YIMBY Act.
This doesn’t happen often.
In this week’s episode of The Real Word, co-host Byron Lazine gave a shoutout to NAR (yes, that NAR) after its CEO Nykia Wright and Chief Advocacy Officer Shannon McGahn met with House Speaker Mike Johnson (R–LA) and House Minority Leader Hakeem Jeffries (D–NY) to celebrate the relaunch of the bipartisan Congressional Real Estate Caucus in the House.
The focus? Housing supply, affordability, taxes, and government funding. Central to NAR’s mission was to advocate for the reintroduction of key housing legislation.
Of particular interest? The More Homes on the Market Act, which could incentivize more homeowners to sell—putting much-needed inventory back on the market.
Byron explained exactly how this act could achieve a double win for consumers.
This would double the capital gains (tax) relief for primary homeowners. I would go further with this act and say, if you want to get more homes on the market, give capital gains relief exemptions to investors…but this was good. It didn’t go through in ‘22; we’ll see if it does here.
Read on for an overview of the re-proposed housing legislation—and why one in particular has the best shot at improving both housing supply and affordability.
Housing Market Realities
Over 60 congressional staff and a dozen members of Congress attended the relaunch of the bipartisan Congressional Real Estate Caucus, where NAR Deputy Chief Economist Jessica Lautz highlighted key market challenges.
Lautz laid out some hard numbers that reinforce what agents are seeing on the ground:
- Existing-home inventory is still below pre-pandemic levels.
- In 121 U.S. metro areas, inventory isn’t keeping up with job growth.
- Home prices have jumped nearly 50% nationwide.
- Home sales in 2023 and 2024 are at 1995 levels—even though the U.S. population has grown by 75 million since then.
- The qualifying income to buy a typical home has skyrocketed from $66,000 in 1995 to $102,000 today.
McGahn emphasized NAR’s research as a critical resource for Congress, providing district and state reports, State Economic Impact Reports, and a new modernized metro market report to inform policymakers.
The Housing Bills on the Table
NAR’s advocacy team has met with all 72 new members of Congress and key committee chairs to push for the reintroduction of the following housing bills:
- More Homes on the Market Act – Doubles the capital gains exclusion to encourage more homeowners to sell.
- Revitalizing Downtowns and Main Streets Act – Promotes converting commercial buildings into residential or mixed-use properties.
- Neighborhood Homes Investment Act – Attracts private investment for building and rehabbing owner-occupied homes.
- Yes In My Backyard (YIMBY) Act – “Encourages” state and local governments to cut red tape and promote housing development.
Byron and Nicole agreed the last one is probably a waste of time since the federal government has little (if any) impact on state and local housing policies. As of yet, we don’t know what kind of encouragement the federal government would or could use to achieve its aims.
That said, the first act gets a thumbs-up from both.
The first one—the More Homes on the Market Act—this should be right up the administration’s alley. [They] want to do tax breaks. This is a tax break that can also help bring inventory onto the market…It would double the capital gains exclusion from $250-500K for single filers and from $500K to $1 million for married couples.
Byron also sees a broader opportunity:
Do it for the investors—those two-, three-unit buildings where the investor is just sick of caring for the property, and get a new owner in there…That, to me, would be the way to do it, but I think this administration would be all for something that is a double win—tax break and bringing inventory onto the market to reduce costs in home affordability. So that, to me, seems like the one to focus on and drive forward.
What Agents Need to Know
For agents, this is the kind of advocacy that could make a real difference. If the More Homes on the Market Act gains traction, it could help unlock more inventory, ease affordability pressures, and create new opportunities for buyers and sellers.
They presented it in October 2022, or around that time. Didn’t happen. Obviously, that was the past administration, so we’ll see what happens this time, but NAR…way to go!
As always, staying informed and engaged is key. The next major update? NAR’s REALTORS® Legislative Meetings in D.C. this June, where members will meet face-to-face with lawmakers to keep the pressure on.
Until then, keep an eye on these bills—and keep the conversation going.
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