Lawmakers Are Finally Paying Attention to Housing. Here’s Why That Matters.

This week, thousands of REALTORS® from across the country traveled to Washington, D.C. for the National Association of REALTORS® Legislative Meetings.

For the first time in several years, I wasn’t one of them.
It felt a little strange watching from home.

In past years, I would have been walking the halls of Capitol Hill, attending committee meetings, and meeting with lawmakers alongside REALTORS® from Illinois and across the country. This year, I stayed focused on clients, listings, marketing projects, and a seemingly endless list of projects closer to home. Even so, I still followed many of the conversations taking place in Washington.

One thing stood out to me.
Housing wasn’t just part of the conversation. It was the conversation.

For years, housing professionals have been sounding the alarm about a growing shortage of homes. Inventory remains low in many markets, affordability has become increasingly challenging, and first-time buyers often struggle to find homes within their budget.

REALTORS® from across the country met with lawmakers to discuss those challenges and potential solutions. At the same time, Congress moved closer to advancing the 21st Century ROAD to Housing Act, one of the most significant housing packages considered in years.

Whether you agree with every proposal being discussed or not, one thing is becoming increasingly clear:

Lawmakers are paying attention to housing.

Why Housing Supply Matters

At its core, America’s housing affordability challenge comes down to a simple problem:

There are not enough homes.

When inventory is limited, buyers compete for fewer properties. Prices rise. Affordability declines. Homeownership becomes more difficult for many families.

According to housing advocates and industry research, the United States faces a shortage of millions of housing units. While that shortage looks different from one community to another, the effects are familiar.

First-time buyers delay homeownership.
Growing families struggle to find larger homes.
Seniors who might otherwise downsize often remain in place.
The result is a housing market with fewer options and increased competition.

A Problem Many Homeowners Don’t Realize They Have

One of the policy discussions highlighted during this year’s Legislative Meetings focused on capital gains tax policy.

Current capital gains exclusions for the sale of a primary residence have not been updated since 1997.

Meanwhile, home values have increased dramatically.

As a result, some long-time homeowners may face significant tax consequences if they sell a highly appreciated property.

Housing advocates argue that this can discourage some homeowners from selling, which further limits housing inventory.

Fewer homes available for sale means fewer opportunities for buyers.

Whether Congress ultimately changes that policy remains to be seen, but the discussion highlights an important point:

Housing affordability isn’t just about mortgage rates. It’s also about housing supply.

Evidence Congress Is Listening

For years, housing organizations, builders, economists, and REALTORS® have argued that affordability challenges cannot be solved without addressing the housing shortage.

Recently, Congress took a significant step forward by advancing the 21st Century ROAD to Housing Act, a bipartisan housing package focused on increasing housing opportunities and addressing barriers to housing development.

The legislation is still moving through the process, but its progress is noteworthy.

In today’s political environment, bipartisan agreement can be difficult to achieve.

The fact that lawmakers from both parties are actively discussing housing supply suggests growing recognition that the issue deserves attention.

Most people never see the years of advocacy, research, meetings, and conversations that occur before a bill reaches this stage.

They see the final vote.

But meaningful policy discussions often begin long before legislation reaches the floor of Congress.

What Could This Mean for Buyers and Sellers?

It’s important to set realistic expectations.

Even if Congress passes major housing legislation, housing markets do not change overnight.

New housing takes time to build.
Policy changes take time to implement.

Inventory shortages that developed over many years are unlikely to disappear quickly.

Still, acknowledging the problem is an important first step.

The more attention policymakers devote to housing supply, the more likely we are to see long-term solutions emerge.

My Take

One of the things I appreciate most about REALTOR® advocacy is that it focuses on issues that affect real people and real communities.

Housing is one of those issues.

Homeownership remains one of the primary ways many Americans build wealth, establish roots, and invest in their future. When housing becomes less attainable, communities feel the impact.

No single bill will solve America’s housing challenges.

But after years of conversations about housing shortages and affordability, it is encouraging to see lawmakers taking the issue seriously.

Whether the 21st Century ROAD to Housing Act ultimately becomes law or evolves into something different, the message coming out of Washington this week was clear:

Housing matters.
And people are finally paying attention.

Resources

NAR Legislative Priorities
Housing Shortage Tracker

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250 Years Later: What Does the American Dream Look Like Today?
Why Does the Economy Feel So Bad If We Aren’t in a Recession?
The BUILD Plan Didn’t Pass—Here’s What Happens Next

About the Author:

Jayme Ahlden is a REALTOR® Broker with Coldwell Banker Real Estate Group, serving Mahomet, Champaign, Urbana, Savoy, and surrounding Central Illinois communities. Jayme focuses on education-first guidance and helping clients navigate complex real estate decisions with clarity and confidence.