More Homes on the Market Act
Current understanding
The More Homes on the Market Act is a legislative proposal to double the IRC §121 capital gains exclusion on the sale of a principal residence from $250,000 to $500,000 for single filers and from $500,000 to $1,000,000 for joint filers, with annual inflation indexing. Proponents frame it as reducing a ‘stay-put’ tax penalty for long-tenured owners whose home equity has appreciated past current thresholds, potentially increasing existing-home listings. Status: introduced; effects on renters, buyers, and builders depend on whether increased listings materially expand for-sale inventory versus primarily benefiting current owners at sale.
Evidence log
- 2025-12-03 — More Homes on the Market Act: S3332 (119th Congress) introduced in the Senate, read twice, and referred to the Committee on Finance — confirms a Senate companion vehicle alongside the House Ways and Means track. (novelty: 2)
- 2025-02-13 — More Homes on the Market Act: cross-connection with transit-oriented-development-act-2026: Both are Ways and Means-referred proposals using federal tax policy to influence housing supply — one via seller-side capital gains relief, the other via transit-adjacent development incentives. (novelty: 2)