ROAD to Housing Act
With a purpose of streamlined allowing, expanded infrastructure investments, and new developments to will increase housing provide and affordability throughout the nation, NAR has been a powerful proponent of the ROAD to Housing Act because it was first launched within the fall of 2024.
“The ROAD to Housing Act acknowledges what Realtors see every single day on the bottom: we don’t have a requirement drawback on this nation, we’ve a provide drawback,” McGahn stated. “By tackling permitting delays, incentivizing native pro-housing reforms, and modernizing federal packages, this invoice would assist speed up housing manufacturing and convey down prices for consumers and renters alike.
“With the nation going through a 4.7-million residence scarcity, these sorts of complete, bipartisan options are precisely what’s wanted.”
Bryan Greene, NAR’s vice chairman of advocacy, provided help for the invoice by collaborating in a bipartisan Congressional Construct America Caucus occasion in September, which spotlighted housing affordability and improvement challenges.
Moreover, in December, NAR’s quick previous president, Kevin Sears, participated in a Home Monetary Providers Committee listening to to debate this and different insurance policies.
Because the invoice progressed via the Senate this yr, NAR lauded the chamber for passing it. Nevertheless it didn’t make it via the Home after being dropped from the Nationwide Protection Authorization Act. Home Republicans have stated they need to craft their own standalone housing proposal. NAR continues to be hopeful about the way forward for the invoice.
“The truth that the ROAD to Housing Act has already handed the Senate reveals there’s actual bipartisan momentum behind addressing housing provide,” McGahn stated. “We’re inspired by that progress and imagine it provides this laws a powerful basis heading into 2026.”
This optimism was aided by the current introduction of the Home model of the invoice, generally known as the Housing for the 21st Century Act. The invoice passed via the Home Monetary Providers Committee in an almost unanimous vote in mid-December.
“The Housing for the twenty first Century Act takes a contemporary, commonsense method to housing by encouraging innovation in development strategies and housing varieties, together with manufactured and modular properties. By updating outdated insurance policies to replicate how properties are constructed right this moment, this invoice will help develop provide extra shortly and create extra attainable housing choices for households throughout the nation,” McGahn stated.
“There’s rising bipartisan curiosity in modernizing housing coverage to replicate right this moment’s market realities, and this laws matches squarely inside that dialog as Congress seems to be for scalable options to spice up provide.”
Extra Houses on the Market Act
For a lot of within the housing business, the present capital gains tax exemption limits are some extent of rivalry. NAR is a powerful proponent of H.R. 1340, which might increase the gain-on-sale limits and incentivize extra long-term house owners to promote their properties.
In early June, the commerce group revealed a chunk noting that it has been practically three many years since Congress revisited the capital positive factors exclusion on the sale of a house.
Based on NAR, altering capital positive factors tax guidelines will assist the housing market unlock stock, because it argued that many longtime owners might really feel trapped of their properties by tax penalties they must pay upon the sale of their residence.
A examine carried out by NAR discovered that 29 million American owners (or 34%) may have already got sufficient equity in their homes to exceed the present $250,000 cap, whereas one other 8 million (or 10%) may have sufficient to surpass $500,000, which is the proposed threshold for people below the invoice.
The commerce group initiatives that by 2030, greater than 56% of householders may have fairness exceeding $250,000. By 2035, that would rise to almost 70%, with 38% surpassing the $500,000 mark. Based on NAR, at their present ranges, the capital positive factors tax thresholds disincentivize individuals from promoting their properties.
“The Extra Houses on the Market Act is about unlocking current stock at a time when consumers have too few selections,” McGahn stated. “The capital positive factors exclusion for residence gross sales hasn’t been up to date in many years, and in consequence it’s successfully taxing residence fairness and discouraging longtime owners from promoting.
“Modernizing that threshold would release properties, ease worth strain, and assist restore mobility within the housing market — particularly for first-time and move-up consumers.”
As a part of NAR’s efforts to hunt reform in capital positive factors tax guidelines, McGahn and CEO Nykia Wright met with congressional leaders, together with Home Speaker Mike Johnson, in March 2025.
McGahn stated NAR is optimistic about the way forward for these capital positive factors tax reform efforts.
“This proposal has bipartisan help as a result of lawmakers on each side perceive that growing provide isn’t nearly new construction, it’s additionally about making it simpler for present owners to checklist and transfer,” she stated. “We see rising recognition in Congress that this can be a sensible, market-based repair that may make a right away distinction.”
Housing Provide Frameworks Act
NAR can be throwing its help behind the Housing Provide Frameworks Act (H.R. 2840), which is targeted on making a nationwide technique for reinforcing housing manufacturing and affordability by reducing barriers to new housing development.
Based on NAR, the bipartisan invoice would give native and state governments the knowledgeable steerage they should reform outdated guidelines that gradual the creation of recent housing stock.
As an alternative of imposing federal mandates, the invoice would offer communities with knowledgeable steerage, technical help and finest practices to allow coverage reforms designed to extend the housing provide throughout all worth factors.
NAR is joined in its help of the invoice by greater than 140 housing and planning organizations together with the Nationwide Affiliation of Dwelling Builders, Nationwide House Affiliation, Habitat for Humanity and the American Planning Affiliation
“On the coronary heart of the affordability disaster is a extreme housing shortage,” McGahn stated. “Regardless of having roughly 75 million extra People right this moment than within the mid-Nineteen Nineties, there have been extra properties obtainable on the market then than there at the moment are. After greater than a decade of underbuilding, the result’s a nationwide scarcity of 4.7 million properties, driving costs and rents increased and placing homeownership out of attain for too many households.”
Moreover these three payments, the commerce group additionally lists help for the Revitalizing Downtowns and Primary Streets Act, the Uplifting First-Time Homebuyers Act, and the Honest and Equal Housing Act as essential legislative priorities in 2026.
Whereas it stays to be seen how a lot progress will likely be made on any of those payments, NAR takes consolation in realizing there’s bipartisan help for measures to extend housing provide and affordability, giving McGahn confidence for what’s to return within the new yr.
“What’s notable — and inspiring — is that housing affordability has emerged as one of many few really bipartisan points in Washington” she stated. “Whether or not it’s the ROAD to Housing Act, the Extra Houses on the Market Act, or broader supply-focused reforms, there’s rising settlement that the established order isn’t working.
“Realtors are optimistic as a result of lawmakers from each events acknowledge that housing will not be a crimson or blue situation — it’s a red, white, and blue issue. NAR will proceed working with Congress and the Administration to advance sensible, bipartisan options that develop provide, decrease prices, and assist extra People obtain the dream of homeownership.”
