I recently caught up on the National Association of REALTORS®’ annual Policy Forum, where some of the biggest names in real estate and government get together to talk about what’s holding buyers and sellers back—and what could actually get more homes sold.
One of the biggest themes? Affordability. Not surprisingly, policymakers are looking at ways to help first-time buyers, encourage homeowners to sell, and increase the overall housing supply.
Capital Gains Could Be a Game-Changer
Rep. Jimmy Panetta (D-Calif.) highlighted a serious problem: families leaving his Northern California district because they can’t find affordable housing. Panetta is backing the More Homes on the Market Act, which would double the capital gains exemption on home-sale profits—an amount that hasn’t changed since 1997. Right now, almost a third of homeowners could face taxes if they sell, which makes some think twice about listing their homes.
This is huge for sellers, especially in high-cost areas. Less worry about taxes could mean more homes on the market, and that helps buyers too.
Cutting Red Tape for First-Time Buyers
Federal Housing Administration commissioner Frank Cassidy shared his personal experience buying his first home in college, and why programs like FHA loans are so important. He also acknowledged a common frustration: slow processing times. The good news? FHA is working on cutting red tape to make it easier for buyers to step onto the property ladder.
Timing Matters More Than Ever
A panel of experts pointed out that the median age of first-time buyers is now 40—a decade older than previous generations. That delay can cost roughly $150,000 in lost equity over a lifetime. REALTORS® play a critical role here, educating buyers about resources and creative solutions, like the proposal to tap 401(k) funds for down payments. It’s an interesting tool, but as always, one size doesn’t fit all.
Rent Control Isn’t the Answer
When it comes to policies, everyone agrees rent control isn’t a fix. Former HUD Secretary Marcia Fudge and former Congressman Steve Stivers emphasized that rent control doesn’t increase housing supply—and in some cases, it even hurts the people who need affordable housing the most. Solutions need cooperation between federal, state, local governments, and the private sector to actually get more homes built.
Parsing What Really Works
Not all proposed policies have the same impact. Limiting institutional investors? Probably minor. Opening up public land near cities for housing? That could add millions of units. Expanding assumable mortgages? Sounds nice, but many first-time buyers still can’t buy out the equity sellers have built up over time.
Capital gains exemptions came up again, with experts saying a targeted approach for older Americans could incentivize them to sell without creating a budget nightmare. Bottom line: smart, thoughtful policies could move the market—but it’s all about balance.
