There’s no shortage of differing opinions within housing, but one thing most industry professionals can agree on is that affordability is a key ongoing struggle for many prospective homebuyers.
Real estate agents and members of the National Association of Realtors (NAR) are on the front lines of this battle, as they work with buyers to navigate numerous challenges — including the current interest rate environment, elevated home prices, insurance cost concerns and a lack of available inventory in many markets.
Due to the daily onslaught of these challenges, it’s unsurprising that much of NAR’s formidable advocacy might has been focused on measures targeted at tackling them.
In 2025, NAR supported countless bills and legislative efforts geared to removing barriers to homeownership — from ways to unlock existing inventory, reduced zoning hurdles for new construction and lower transaction costs. The trade group intends to continue these efforts in the new year.
HousingWire recently caught up with NAR’s chief advocacy officer, Shannon McGahn, to learn more about some of the association’s legislative priorities in 2026.
ROAD to Housing Act
With a goal of streamlined permitting, expanded infrastructure investments, and new developments to increases housing supply and affordability across the country, NAR has been a strong proponent of the ROAD to Housing Act since it was first introduced in the fall of 2024.
“The ROAD to Housing Act recognizes what Realtors see every day on the ground: we don’t have a demand problem in this country, we have a supply problem,” McGahn said. “By tackling permitting delays, incentivizing local pro-housing reforms, and modernizing federal programs, this bill would help accelerate housing production and bring down costs for buyers and renters alike.
“With the nation facing a 4.7-million home shortage, these kinds of comprehensive, bipartisan solutions are exactly what’s needed.”
Bryan Greene, NAR’s vice president of advocacy, offered support for the bill by participating in a bipartisan Congressional Build America Caucus event in September, which spotlighted housing affordability and development challenges.
Additionally, in December, NAR’s immediate past president, Kevin Sears, participated in a House Financial Services Committee hearing to discuss this and other policies.
As the bill progressed through the Senate this year, NAR lauded the chamber for passing it. But it did not make it through the House after being dropped from the National Defense Authorization Act. House Republicans have said they want to craft their own standalone housing proposal. NAR is still hopeful about the future of the bill.
“The fact that the ROAD to Housing Act has already passed the Senate shows there is real bipartisan momentum behind addressing housing supply,” McGahn said. “We’re encouraged by that progress and believe it gives this legislation a strong foundation heading into 2026.”
This optimism was aided by the recent introduction of the House version of the bill, known as the Housing for the 21st Century Act. The bill passed through the House Financial Services Committee in a nearly unanimous vote in mid-December.
“The Housing for the 21st Century Act takes a modern, commonsense approach to housing by encouraging innovation in construction methods and housing types, including manufactured and modular homes. By updating outdated policies to reflect how homes are built today, this bill can help expand supply more quickly and create more attainable housing options for families across the country,” McGahn said.
“There is growing bipartisan interest in modernizing housing policy to reflect today’s market realities, and this legislation fits squarely within that conversation as Congress looks for scalable solutions to boost supply.”
More Homes on the Market Act
For many in the housing industry, the current capital gains tax exemption limits are a point of contention. NAR is a strong proponent of H.R. 1340, which would raise the gain-on-sale limits and incentivize more long-term owners to sell their homes.
In early June, the trade group published a piece noting that it has been nearly three decades since Congress revisited the capital gains exclusion on the sale of a home.
According to NAR, changing capital gains tax rules will help the housing market unlock inventory, as it argued that many longtime homeowners may feel trapped in their homes by tax penalties they would have to pay upon the sale of their home.
A study conducted by NAR found that 29 million American homeowners (or 34%) could already have enough equity in their homes to exceed the current $250,000 cap, while another 8 million (or 10%) could have enough to surpass $500,000, which is the proposed threshold for individuals under the bill.
The trade group projects that by 2030, more than 56% of homeowners could have equity exceeding $250,000. By 2035, that could rise to nearly 70%, with 38% surpassing the $500,000 mark. According to NAR, at their current levels, the capital gains tax thresholds disincentivize people from selling their homes.
“The More Homes on the Market Act is about unlocking existing inventory at a time when buyers have too few choices,” McGahn said. “The capital gains exclusion for home sales hasn’t been updated in decades, and as a result it’s effectively taxing home equity and discouraging longtime homeowners from selling.
“Modernizing that threshold would free up homes, ease price pressure, and help restore mobility in the housing market — especially for first-time and move-up buyers.”
As part of NAR’s efforts to seek reform in capital gains tax rules, McGahn and CEO Nykia Wright met with congressional leaders, including House Speaker Mike Johnson, in March 2025.
McGahn said NAR is optimistic about the future of these capital gains tax reform efforts.
“This proposal has bipartisan support because lawmakers on both sides understand that increasing supply isn’t just about new construction, it’s also about making it easier for current homeowners to list and move,” she said. “We see growing recognition in Congress that this is a practical, market-based fix that can make an immediate difference.”
Housing Supply Frameworks Act
NAR is also throwing its support behind the Housing Supply Frameworks Act (H.R. 2840), which is focused on creating a national strategy for boosting housing production and affordability by reducing barriers to new housing development.
According to NAR, the bipartisan bill would give local and state governments the expert guidance they need to reform outdated rules that slow the creation of new housing inventory.
Instead of imposing federal mandates, the bill would provide communities with expert guidance, technical assistance and best practices to enable policy reforms designed to increase the housing supply across all price points.
NAR is joined in its support of the bill by more than 140 housing and planning organizations including the National Association of Home Builders, National Apartment Association, Habitat for Humanity and the American Planning Association
“At the heart of the affordability crisis is a severe housing shortage,” McGahn said. “Despite having roughly 75 million more Americans today than in the mid-1990s, there were more homes available for sale then than there are now. After more than a decade of underbuilding, the result is a nationwide shortage of 4.7 million homes, driving prices and rents higher and putting homeownership out of reach for too many families.”
Besides these three bills, the trade group also lists support for the Revitalizing Downtowns and Main Streets Act, the Uplifting First-Time Homebuyers Act, and the Fair and Equal Housing Act as main legislative priorities in 2026.
While it remains to be seen how much progress will be made on any of these bills, NAR takes comfort in knowing there is bipartisan support for measures to increase housing supply and affordability, giving McGahn confidence for what’s to come in the new year.
“What’s notable — and encouraging — is that housing affordability has emerged as one of the few truly bipartisan issues in Washington” she said. “Whether it’s the ROAD to Housing Act, the More Homes on the Market Act, or broader supply-focused reforms, there is growing agreement that the status quo isn’t working.
“Realtors are optimistic because lawmakers from both parties recognize that housing is not a red or blue issue — it’s a red, white, and blue issue. NAR will continue working with Congress and the Administration to advance practical, bipartisan solutions that expand supply, lower costs, and help more Americans achieve the dream of homeownership.”