When most people think of Realtors, they envision professionals assisting with the buying and selling of homes. While this is a crucial part of what we do, our role extends far beyond the transactional aspects of real estate. Realtors are steadfast advocates for consumers and homeowners, working tirelessly to influence policies that benefit our communities.
Recently, Realtors from across the nation convened "On The Hill" in Washington, D.C., to engage with legislators about key legislative priorities. This annual event, organized by the National Association of Realtors (NAR), underscores the vital advocacy work we undertake to support and protect homeownership.
One of the critical legislative priorities discussed was the bipartisan More Homes on the Market Act. This proposed legislation aims to incentivize long-term homeowners to sell their homes by increasing the maximum amount of capital gains a homeowner can exclude from the sale of a principal residence. Currently, individuals can exclude up to $250,000, and married couples can exclude up to $500,000. The proposed act seeks to double these amounts to $500,000 for individuals and $1,000,000 for married couples, with annual adjustments for inflation.
For many older homeowners considering downsizing or moving to a retirement facility, the current exclusions are insufficient, potentially leaving them with significant tax burdens. This financial strain discourages them from selling, thus limiting the inventory of homes available on the market. By increasing the exclusion and indexing it for inflation, this legislation would remove a significant barrier, enabling more homeowners to sell and thereby increasing the availability of homes for prospective buyers, especially first-time homebuyers facing high prices and intense competition.
In addition to this, Realtors are championing the bipartisan Neighborhood Homes Investment Act. This initiative aims to attract private investment for building and rehabilitating owner-occupied homes in areas where development costs exceed property values. By offering tax credits, the act promotes neighborhood stability and sustainable homeownership, particularly benefiting low- and moderate-income homeowners.
Furthermore, Realtors are advocating for the Affordable Housing Credit Improvement Act, which seeks to expand the Low-Income Housing Tax Credit to boost affordable housing investment. This is essential in addressing the shortage of affordable housing that many communities face today.
Realtors are more than just facilitators of real estate transactions. We are dedicated advocates, working at local, state, and national levels to ensure the policies in place foster a healthy, vibrant housing market. Our efforts help create opportunities for homeownership and strengthen the fabric of our communities. By supporting these legislative initiatives, we are not just advocating for our profession, but for the well-being of homeowners and prospective buyers across the country.
