In an ambitious move to address the nation's housing crisis, a bipartisan group of senators, including Mark Kelly (D-AZ), John Cornyn (R-TX), Michael Bennet (D-CO), Steve Daines (R-MT), Adam Schiff (D-CA), and John Barrasso (R-WY), have put forth the More Homes on the Market Act. This legislation aims to update an outdated tax code, catalyzing an increase in housing availability while also working to make homes more financially accessible.
Under the current system, homeowners can exclude up to $250,000 ($500,000 for joint filers) from capital gains taxes when they sell their primary residence. However, this cap has remained unchanged since 1997 and has not been adjusted for inflation—a fact that has led many long-time homeowners to hold onto their properties instead of selling. According to a statement on Senator Kelly's website, the proposed bill would double these exclusion amounts to $500,000 for single filers and $1 million for those filing jointly.
"Arizona families feel the housing squeeze every day. Homeowners who want to move or downsize are worried they'll get hit with a big tax bill," Senator Kelly told his website's audience. On the other side of the aisle, Senator Cornyn emphasized the American dream rooted in homeownership and how the legislation supports that vision by updating the tax code to incentivize selling.
The issue stretches across state lines, impacting various states regardless of political leaning. In California, known for its significant housing shortage, Adam Schiff backs the bill as a means to alleviate the financial burdens homeowners face when selling their homes—an effort to free up more homes for younger buyers. And in territories less dense than California, like Wyoming, Senator Barrasso positions the act as a way to reward long-time residents with financial relief as they transition from their longstanding familial homes.
The support for the More Homes on the Market Act is not solely political; it has garnered endorsements from organizations like the National Association of Realtors (NAR) and AARP, institutions that recognize the urgent need to address housing shortages and affordability that face the current and coming generations. By increasing the exclusions, the senators and supporting organizations believe it will make selling homes a more attractive option for countless Americans, thereby enriching the market with much-needed inventory for eager buyers.
