Kelly, Cornyn, Bennet, Colleagues Introduce Bill to Increase Housing Availability and Affordability
Senators 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) introduced the More Homes on the Market Act, which would make housing more available and affordable by incentivizing homeowners to sell their homes and increasing market supply.
“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,” said Kelly. “Updating this cap will make it easier for Arizonans to sell and keep more of their savings, while opening up homes for young families.”
“The American dream is rooted in owning a home and raising a family, but an outdated tax code not only prevents the next generation from being able to afford a home, but it also prevents seniors seeking to downsize from selling theirs,” said Cornyn. “This legislation would update the tax code to incentivize sellers and make homes more affordable, and I’m glad to support it.”
“Too many families in Colorado struggle to find affordable homes in their communities that meet their needs. At the same time, seniors are struggling to sell their homes for fear of a massive tax bill,” said Bennet. “This bill addresses this problem and updates outdated tax rules so more homes can come on the market and more Coloradans can find a place to call their own.”
“As Montanans grapple with historically high housing prices, the last thing families should have to deal with is enormous tax burdens when they decide to move. The More Homes on the Market Act will provide much-needed tax relief for Montana families, especially our seniors who have been living in their homes for years,” said Daines.
“California is facing a significant housing shortage and in order to address this crisis we need to use every tool at our disposal to increase housing availability. This legislation is one such solution, easing the financial burden homeowners face when selling their homes in order to make more homes available for younger home buyers. The More Homes on the Market Act would allow homeowners to downsize without penalty, free up existing housing stock, and help bring the dream of homeownership within reach for more Americans,” said Schiff.
“Wyoming families who have spent decades in their homes shouldn’t be punished with enormous tax bills when they decide to move,” said Barrasso. “The More Homes on the Market Act is a commonsense solution that provides long-overdue tax relief. This will allow Americans to keep more of their hard-earned money while increasing the housing supply for the next generation of homebuyers.”
Background:
The current tax code allows homeowners who sell their primary home to exclude $250,000 in gains from capital gains taxes, or $500,000 in the case of a couple filing jointly. However, this exclusion has not been updated since 1997 nor is it indexed for inflation. Because of this, millions of homeowners in Arizona and across the country face overly burdensome taxes from the sale of their homes, leading many homeowners—especially seniors who have lived in their home for decades—to choose not to sell. The More Homes on the Market Act would increase the exclusion to $500,000 for single filers and $1 million for joint filers, making it more financially desirable for homeowners to sell and increasing housing turnover.
The legislation is endorsed by the National Association of Realtors (NAR) and AARP.
Real the full text of the bill here.
