Homeownership is a cornerstone of the American dream, but it remains out of reach for many due to the nation’s severely limited housing inventory. The United States is currently facing an underbuilding gap of 5.5 million units, equating to a staggering $4.4 trillion underinvestment in housing. To bridge this gap and make homeownership accessible to more people, we must take decisive action to increase the housing supply.
The Role of Tax Policy in Promoting Homeownership
America’s tax laws play a crucial role in promoting homeownership, building stable communities, and boosting economic growth. The National Association of Realtors (NAR) is championing several bipartisan tax bills designed to address these challenges and provide effective solutions. Here’s a look at the key legislative initiatives NAR is advocating for:
1. The More Homes on the Market Act (H.R. 1321)
- This act aims to decrease the equity penalty, thereby incentivizing long-term homeowners to sell their properties. By encouraging more homeowners to sell, we can increase the availability of homes on the market.
2. The Neighborhood Homes Investment Act (S. 657/H.R. 3940)
- This legislation seeks to attract private investment to build and rehabilitate owner-occupied homes, particularly in underdeveloped neighborhoods. This investment will help revitalize communities and provide more housing options for prospective homeowners.
3. The Affordable Housing Credit Improvement Act (S. 1557/H.R. 3238)
- This act is designed to promote the creation and preservation of affordable housing through tax credits. By making affordable housing more accessible, we can help more families achieve homeownership.
4. Supporting Small Businesses
- NAR is advocating for the preservation of the 199A qualified business income deduction, which helps keep taxes lower for independent contractors and pass-through business owners, including many real estate professionals.
5. Supporting Commercial Real Estate Investment
- Preserving 1031 like-kind exchanges is crucial for maintaining investment in commercial real estate, which can have a positive impact on housing availability.
6. Incentivizing Homeownership
- Increasing the $10,000 cap on the state and local tax (SALT) deduction and eliminating the marriage penalty can provide significant tax relief for homeowners, making homeownership more financially viable.
Advocating for Equal Access and Fair Housing
Beyond tax policy, NAR is committed to ensuring equal access to professional representation and supporting fair housing initiatives. Key priorities include:
1. Supporting Veterans
- Ensuring veterans maintain access to professional representation and can compete in the market by allowing VA buyers to compensate their professional representatives directly.
2. Maintaining Independent Contractor Status
- Supporting the Direct Seller and Real Estate Agent Harmonization Act (H.R. 5419) to ensure real estate agents can maintain their independent contractor status under the Fair Labor Standards Act (FLSA).
3. Promoting Fair and Equal Housing
- Supporting the Fair and Equal Housing Act (H.R. 4439) to add sexual orientation and gender identity as protected classes under the Fair Housing Act.
4. Black Homeownership Collaborative
- NAR is a founding member of the Black Homeownership Collaborative and supports the 3by30 initiative, which aims to add three million net new Black homeowners by 2030.
Join Us in Making a Difference
NCJAR members, your role in this effort is crucial. By staying informed and advocating for these legislative initiatives, we can work together to make homeownership accessible to more Americans. Let’s take action to close the housing gap, promote fair housing, and build stronger, more inclusive communities.
For more information on how you can support these efforts, visit NAR’s advocacy resources or contact your local NCJAR office.
Together, we can make a difference in the lives of countless families striving to achieve the dream of homeownership.
