On Wednesday, Kevin Sears, immediate past president of the National Association of REALTORS® and a veteran real-estate broker in Massachusetts, testified before the House Financial Services Committee in a full committee hearing entitled, “Building Capacity: Reducing Government Roadblocks to Housing Supply,” led by Chairman French Hill (R-Ark.) and Ranking Member Maxine Waters (D-Calif.).
Read NAR's full written testimony submitted to the House Financial Services Committee.pdf
In his remarks, Sears painted a stark portrait of America’s housing market: a nation where supply has collapsed, affordability is eroding, and the American dream of homeownership is slipping out of reach. “Every day, REALTORS® [members of NAR] watch families struggle to find homes that they can afford. These are families who have done everything right. They’ve saved for years. They have stable jobs. They have good credit. We constantly see teachers, nurses and police officers priced out of the very communities they serve,” Sears said of the affordability crisis.
The housing shortage can no longer be ignored, Sears said. Regulatory barriers and outdated financing rules have made it difficult to create inventory, leaving millions of families and consumers facing an uphill battle to find homes they can afford. Home prices and rents continue to rise, while the inventory of affordable starter homes remains scarce. For first-time buyers—now a median age of 40—supply simply isn’t keeping up with demand.
“At the root of America’s affordability crisis is an undeniable fact: Our nation has a severe lack of housing supply. The numbers tell a stark story,” Sears added. Indeed, NAR research shows that America’s housing supply is at a shortage of 4.7 million homes and that a 10-year delay in homebuying for the typical first-time home buyer could result in $150,000 in lost wealth, equity that could help fund a child’s education or their retirement.
Why Policy Is Part of the Problem
In his testimony, Sears pointed to several structural factors behind the shortage. First among them: regulatory and policy barriers at all levels. Zoning laws in many communities prohibit housing types—such as duplexes, accessory dwelling units, townhomes or small multiplexes—that historically provided affordable options for first-time buyers and middle-income families. Lengthy permitting processes, high impact fees, density restrictions and parking requirements only add to the burden.
“Builders face barriers at every level of government—restrictive zoning, unpredictable permitting and rent control at the local level, along with federal red tape and high financing costs—all of which slow construction and limit the supply of affordable and rental homes,” Sears stated in his testimony.
While much attention focuses on federal policy, Sears shared the active role real estate professionals are already playing in many communities. Through partnerships, education and advocacy, NAR and local REALTOR® associations have worked with city planners, builders and elected officials to adopt reforms like zoning changes, by-right ADU legislation and infill development on excess state parcels.
However, these efforts aren’t enough to close a nationwide supply gap measured in the millions. He stressed that federal leadership and broader policy reforms are essential to restoring balance and ensuring affordability for all Americans.
The Path Forward: Practical, Bipartisan Solutions
Sears endorsed a menu of legislative reforms. Among them: the More Homes on the Market Act, which would incentivize sellers by increasing the capital gains exclusion on the sale of their home (thereby encouraging turnover and releasing existing inventory); modernization of FHA financing rules to better support buyers of modest or renovated properties; and streamlining of federal review processes to accelerate construction of affordable housing.
Ranking Member of the Housing and Insurance Subcommittee Emanuel Cleaver (D-Mo.) said that “Congress now has a once-in-a-generation opportunity to advance housing legislation of consequence.”
Rep. Cleaver and Subcommittee Chairman Mike Flood (R-Neb.) previously introduced the HOME Reform Act of 2025, which NAR supports. The legislation marks the first major reforms to the HOME program since it was first authorized in 1990, streamlining regulations to strengthen public-private partnerships to encourage the building of more housing and rental properties in an effort to bring down the cost of housing.
As Kevin Sears concluded in his testimony: “The housing supply crisis demands action at every level of government. This crisis is not a red issue or a blue issue—it's a red, white and blue issue.”
Congress can act in partnership with REALTORS® and others in the housing industry to restore hope to those who feel closed out of the market, says Shannon McGahn, NAR executive vice president and chief advocacy officer. “Our members stand ready to work with Congress and the Administration to deliver real solutions to the housing affordability and supply crisis.”
