Senator Mark Kelly (D-AZ) has introduced the More Homes on the Market Act to increase market supply and improve housing availability and affordability.
Alongside Kelly, Senators John Cornyn (R-TX), Michael Bennet (D-CO), Steve Daines (R-MT), Adam Schiff (D-CA), and John Barrasso (R-WY) also proposed the legislation. The senators are encouraging homeowners to sell their homes to boost housing supply.
Arizona families feel the housing squeeze every day. Homeowners who want to move or downsize are worried they’ll get hit with a big tax bill,” Kelly explained.
Tax code regulations have not been updated to match current inflation. Concerns arise when homeowners are in the process of selling their homes, but $250,000 is excluded from capital gains taxes for single owners and doubles when a couple files jointly.
Additionally, the senators are highlighting that homeowners across state lines are delaying home sales due to the overwhelming tax burden.
“Too many families in Colorado struggle to find affordable homes in their communities that meet their needs. At the same time, seniors are struggling to sell their homes for fear of a massive tax bill,” Bennet stated.
Increasing prices to properly keep pace with inflation to help homeowners, the More Homes on the Market Act ensures $500,000 for single filers and $1 million for joint filers.
Additional Support
Senators outside of Arizona have expressed relief in the act for their own communities.
“The American dream is rooted in owning a home and raising a family, but an outdated tax code not only prevents the next generation from being able to afford a home, but it also prevents seniors seeking to downsize from selling theirs,” said Cornyn.
The More Homes on the Market Act aims to provide tax relief for homeowners, particularly seniors and long-term residents. Both Texas and Colorado senators believe updating the tax code will help break the cycle of stress that homeowners continue to experience.
Lawmakers from Montana, California, and Wyoming argue that the legislation addresses both the housing affordability crisis and supply shortage by removing financial penalties that discourage people from downsizing or moving, thereby freeing up existing homes for younger buyers and making homeownership more accessible to the next generation while allowing families to keep more of their money.
“Updating this cap will make it easier for Arizonans to sell and keep more of their savings, while opening up homes for young families,” Kelly concluded.
