Housing supply

Year of Action on Affordable Housing Supply — RISMedia

National Association of REALTORS® (NAR) President Leslie Rouda Smith participated in a private meeting at the White House in September with a diverse group of housing industry leaders to discuss workable solutions to the housing crisis. the country’s housing supply and affordability.

She called the meeting a “frank discussion of ideas” on how to close the historic shortfall of 5.5 million housing units. And she called the supply of housing “the No. 1 problem for millions of consumers who are excluded from the market”.

The discussion focused on legislative, administrative, private sector, state and local solutions.

National Economic Council Director Brian Deese, Domestic Policy Council Director Ambassador Susan Rice, Housing and Urban Development Secretary Marcia Fudge and Federal Housing Finance Agency Director Sandra Thompson, joined the administration.

Following the meeting, Rouda Smith said, “I conveyed to the administration and my colleagues our support for a comprehensive plan that includes investment in new construction, zoning reforms, expansion of the funding and tax incentives to spur investment in housing and convert unused commercial space into residential.”

This meeting follows a year of action on procurement.

In May, thousands of REALTORS® descended on Washington, D.C., and hand-delivered to Congress a comprehensive list of actions to address the housing shortage, while also in May, the Biden administration published the presidential action plan for housing supply.

In June, NAR Chief Economist Lawrence Yun testified before the Senate Banking Committee on housing inventory and affordability.

And in July, the Treasury Department authorized the use of $350 billion in US bailout funds to develop, repair and operate affordable housing.

Many avenues for solving the housing supply crisis go through the tax code.

Recently, a bipartisan bill was introduced in Congress to double the capital gains exclusion for sales of primary residences from $250,000 to $500,000 for single filers and from $500,000 to $1 million for married couples filing a joint tax return, and also index these amounts for future inflation. .

The “More Homes on the Market Act” was introduced with the approval of NAR by Representatives Jimmy Panetta (D-CA) and Mike Kelly (R-PA), two key REALTORS® allies.

The current exclusion amounts were not indexed to inflation when they were made into tax law in 1997, and a quarter century of inflation has significantly reduced the benefit.

For years, real estate agents have noted that this trend has created a disincentive to sell and resulted in fewer homes on the market.

This bill is just one example of NAR’s work on supply and affordability. We will continue to join our friends, government, industry leaders and elected officials at the national and local levels on a sustained and comprehensive plan of action to alleviate this crisis.

For more information, visit https://www.nar.realtor/.