With Tax Day now behind us, the question of whether a 2026 tax bill could take center stage on Capitol Hill this spring has tax and housing policy experts crossing their fingers with hope and anticipation. Last year's One Big Beautiful Bill Act, which extended the expiring tax cuts from the 2017 tax reform, was landmark legislation that resulted in tax savings for many homeowners, real estate professionals and investors in real property.
As game changing as last year's bill was, though, it omitted some vital provisions needed to address the twin challenges of limited housing supply and historically low inventory of homes for sale that continue to vex U.S. housing markets. These constraints continue to drive affordability concerns nationwide, putting pressure on both prospective buyers and the real estate professionals who serve them.
The National Association of REALTORS® has consistently emphasized that meaningful policy changes can play a critical role in addressing these issues. To positively impact housing supply and affordability, NAR Advocacy is focusing on tax incentives that would:
- Encourage new construction
- Support conversion or redevelopment of underutilized existing buildings
- Unlock existing inventory by increasing the capital gains exclusion that is holding back many long-time homeowners from listing their properties
As lawmakers begin this week to shape potential legislation, these measures would promote housing availability and could make all the difference in stabilizing the market and expanding opportunities for homeownership.
“Throughout previous tax reform efforts, NAR has remained a leading voice in Washington, advocating for policies that recognize homeownership as a cornerstone of the American dream,” says Shannon McGahn, NAR executive vice president and chief advocacy officer. “From preserving key deductions to supporting provisions that benefit independent contractors and small businesses, NAR has worked to ensure that real estate professionals, and their clients, are not left behind in broader economic debates.”
If the new must-pass bill now being formulated by key congressional leaders is crafted to allow critical tax policy changes, NAR will once again be at the table, engaging directly with policymakers to help shape outcomes that support NAR members and the consumers they serve.
“With housing affordability still top of mind for millions of Americans, NAR’s advocacy will be critical in ensuring that tax policy remains a tool for expanding the supply of homes and access to homeownership, rather than a barrier to it,” McGahn says.
