The "More Homes on the Market Act": What Homeowners Need to Know
Homeownership isn’t just a place to live—it’s often the most significant source of wealth for families. But shifting market dynamics and outdated tax rules have kept many homeowners “locked in” because selling triggers hefty capital gains taxes. That’s where the More Homes on the Market Act comes in. Here's how this proposed legislation could offer relief—and when we might see action.
What the Act Proposes
Double the Capital Gains Exclusion: Currently, individuals can exclude up to $250,000 (and couples up to $500,000) in profit from selling their primary home. The Act would raise this to $500,000 for individuals and $1 million for joint filers congress.gov+13nar.realtor+13car.org+13.
Index for Inflation: Unlike today’s fixed thresholds (which haven’t changed since 1997), these new limits would adjust annually to reflect inflation .
Why This Matters for Homeowners
Eases the “Stay-Put” Penalty
Rising home values often discourage longtime homeowners—particularly seniors—from selling due to tax burdens. This Act would ease that constraint, empowering more homeowners to move, downsize, or relocate nar.realtor.Boosts Housing Supply
When more homeowners feel financially comfortable selling, listings grow. This can help balance markets, benefiting buyers and sellers alike panetta.house.gov+12nar.realtor+12jasonbornpm.com+12jasonbornpm.com.Supports Long-Term Wealth Building
By reducing tax burdens, the Act helps Americans keep more of their home equity—equity that often forms the foundation of retirement planning and financial security amycimetta.comnar.realtor.
Timeline & Legislative Status
Originally introduced as H.R. 1321 in March 2023 by Representatives Panetta and Kelly kff.org+9congress.gov+9panetta.house.gov+9.
Reintroduced in the current Congress as H.R. 1340 in February 2025, now with 62 bipartisan co-sponsors and under review in the House Ways & Means Committee congress.gov+2congress.gov+2billtrack50.com+2.
With growing advocacy—from NAR, CAR, and other housing groups—the bill is expected to see action later in 2025 panetta.house.gov+6pleasantonweekly.com+6car.org+6.
The Upside for You
More flexibility to move without fearing a hefty tax hit.
Greater range of buyers if you're selling—and stronger competition for your home.
Peace of mind knowing your growing equity isn’t taxed unfairly when you decide to sell.
What to Do Next
Stay informed on legislative updates—especially if you're considering selling in the next few years.
Factor this potential change into your long-term real estate planning.
Connect with a trusted advisor—like me—to explore your options based on current tax rules and future possibilities.
Final Take
The More Homes on the Market Act is more than a tax bill—it’s a step toward healthier housing markets. By easing capital gains penalties and unlocking equity, it could encourage more listings and help entire communities thrive. While it’s still working its way through Congress, the momentum is strong—and the implications for homeowners are significant.
If you’re thinking about selling or planning your next move, let's discuss how this could shape your decision-making and what strategies you can adopt now.
