The More Homes on the Market Act (H.R. 1321) is a bipartisan proposal introduced in the 118th Congress to address the ongoing housing inventory shortage by incentivizing homeowners to sell their primary residences.
What the Act Proposes
Currently, homeowners can exclude up to $250,000 ($500,000 for married couples) in capital gains from the sale of their primary residence—a threshold set in 1997 and not adjusted for inflation. As home prices have risen significantly since then, many homeowners, particularly older individuals, face substantial tax bills upon selling, discouraging them from listing their properties.
H.R. 1321 seeks to:
Double the exclusion to $500,000 for single filers and $1 million for married couples.
Index these amounts to inflation, ensuring they adjust annually to reflect changes in the cost of living.
This adjustment aims to make it financially feasible for more homeowners to sell, thereby increasing housing market inventory.
Why It Matters
By reducing the tax burden on home sales, the Act encourages homeowners—especially seniors and those looking to downsize—to list their properties. This influx of listings can help alleviate the tight housing supply, offering more options for buyers and potentially stabilizing home prices.
How You Can Support the Act
If you believe this legislation could benefit the housing market and homeowners, consider reaching out to your U.S. Representative or Senator to express your support. You can find contact information and more details at www.house.gov and www.senate.gov.
For more information on the bill's full text and legislative status, visit congress.gov.
This legislative effort reflects a growing recognition of the need to adapt tax policies to current housing market realities, aiming to benefit both sellers and buyers alike.
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