AWAY to the Housing Act
With the goal of streamlined permitting, expanded infrastructure investments, and new developments to increase housing supply and affordability across the country, NAR has been a strong supporter of the ROAD to Housing Act since it was first introduced in the fall of 2024.
“The ROAD to Housing Act recognizes what real estate agents see on the ground every day: We don’t have a demand problem in this country, we have a supply problem,” McGahn said. “By addressing permitting delays, encouraging local housing reforms, and modernizing federal programs, this bill would help accelerate housing production and lower costs for both buyers and renters.
“As the country faces a housing shortage of 4.7 million, these types of comprehensive, bipartisan solutions are exactly what is needed.”
Bryan Greene, NAR’s vice president of advocacy, offered support for the bill by participating in a bipartisan Congressional Build America Caucus event in September, highlighting housing affordability and development issues.
Additionally, Kevin Sears, the former president of NAR, participated in one in December House Financial Services Committee hearing to discuss this and other policies.
As the bill passes through the Senate this year, NAR commended the chamber for adopting it. But it failed to pass the House after it was removed from the National Defense Authorization Act. Republicans in the House of Representatives have said they want to craft their own standalone housing bill. NAR is still hopeful about the future of the bill.
“The fact that the ROAD to Housing Act has already passed the Senate shows that there is a real bipartisan dynamic behind addressing housing supply,” McGahn said. “We are encouraged by that progress and believe it gives this legislation a strong foundation heading into 2026.”
This optimism was helped by the recent introduction of the House version of the bill, known as the Housing for the 21st Century Act. The bill passed the House Financial Services Committee in mid-December by a near-unanimous vote.
“The Housing for the 21st Century Act takes a modern, common-sense approach to housing by encouraging innovation in construction methods and housing types, including manufactured and modular homes. By updating outdated policies to reflect how homes are built today, this bill can help expand supply more quickly and create more viable housing options for families across the country,” McGahn said.
“There is growing bipartisan interest in modernizing housing policy to reflect current market realities, and this legislation fits right into that conversation, as Congress is looking for scalable solutions to increase supply.”
More homes on the market
For many in the housing industry, the current capital gains tax exemption limits are a point of contention. NAR is a big supporter of this H.R. 1340which would increase the limits on profit on sales and encourage more long-term owners to sell their homes.
In early June, the trade group published a piece noting that it has been nearly three decades since Congress revisited the capital gains exclusion on the sale of a home.
According to NAR, changing capital gains tax rules will help the housing market unlock inventory, as many longtime homeowners feel trapped in their homes by tax penalties they would have to pay when selling their homes.
A study conducted by NAR found that 29 million U.S. homeowners (or 34%) could already have enough equity in their homes to exceed the current $250,000 limit, while another 8 million (or 10%) could have enough to exceed $500,000, which is the proposed threshold for individuals covered by the bill.
The trade group predicts that by 2030, more than 56% of homeowners could have equity of more than $250,000. By 2035, that could rise to almost 70%, with 38% exceeding the $500,000 mark. According to NAR, capital gains tax thresholds at current levels discourage people from selling their homes.
“The More Homes on the Market Act is about unlocking existing inventory at a time when buyers have too few choices,” McGahn said. “The capital gains exclusion on home sales has not been updated in decades, and as a result it effectively taxes home equity and discourages longtime homeowners from selling.
“Modernizing that threshold would free up housing, relieve price pressure and help restore mobility in the housing market – especially for first-time buyers and first-time buyers.”
As part of NAR’s efforts to pursue reforms in capital gains tax rules, McGahn and CEO Nykia Wright met with congressional leaders, including House Speaker Mike Johnson, in March 2025.
McGahn said NAR is optimistic about the future of these capital gains tax reform efforts.
“This proposal has bipartisan support because lawmakers on both sides understand that increasing supply is not just about new construction, but also about making it easier for current homeowners to list and move,” she said. “We see growing recognition in Congress that this is a practical, market-based solution that can make an immediate difference.”
Housing Supply Framework Act
NAR also supports the Housing Provision Framework Act (H.R. 2840), which focuses on creating a national strategy to boost housing production and affordability by removing barriers to the development of new housing.
According to NAR, the bipartisan bill would give local and state governments the expert guidance they need to reform outdated rules that are slowing the creation of new housing stock.
Rather than imposing federal mandates, the bill would provide communities with expert guidance, technical assistance, and best practices to enable policy reforms designed to increase housing supply across all price ranges.
NAR is joined in its support of the bill by more than 140 housing and planning organizations, including the National Association of Home Builders, National Apartment Association, Habitat for humanity and the American Planning Association
“At the heart of the affordability crisis is a severe housing shortage,” McGahn said. “Despite there being about 75 million more Americans today than there were in the mid-1990s, there were more homes for sale then than there are now. After more than a decade of underconstruction, the result is a nationwide shortage of 4.7 million homes, driving up prices and rents and putting homeownership out of reach for too many families.”
In addition to these three bills, the trade group also cites support for the Revitalizing Downtowns and Main Streets Act, the Uplifting First-Time Homebuyers Act and the Fair and Equal Housing Act as top legislative priorities in 2026.
While it remains to be seen how much progress will be made on each of these bills, NAR takes comfort in knowing that there is bipartisan support for measures to increase housing supply and affordability, giving McGahn confidence for what will happen in the new year.
“What is remarkable – and encouraging – is that housing affordability has emerged as one of the few truly bipartisan issues in Washington,” she said. “Whether it is the ROAD to Housing Act, the More Homes on the Market Act or broader supply-side reforms, there is increasing agreement that the status quo is not working.
“Real estate agents are optimistic because lawmakers from both parties recognize that housing is not a red or blue issue – it is a red, white and blue issue. NAR will continue to work with Congress and the Administration to advance practical, bipartisan solutions that increase supply, lower costs and help more Americans achieve the dream of homeownership.”
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