Expanding Homeownership Requires Bold Action on Housing Affordability and Policy Reform

The moment when homebuyers receive their keys and begin a new chapter represents the core of the American Dream, embodying opportunity and a brighter future. Yet as the nation marks its 250th anniversary, the path to homeownership has become significantly more challenging due to inventory shortages, insurance complications and regulatory obstacles. The National Association of REALTORS has championed the 21st Century ROAD to Housing Act as a critical step forward, but sustained momentum and additional efforts remain essential to unlock homeownership for more Americans.

Polling data underscores homeownership’s cultural significance: 85% of voters surveyed by NAR identified owning a home as part of the American Dream, up from 79% in 2013. The financial stakes are equally compelling, with homeowners maintaining net worth 40 times higher than renters, and home equity comprising over 60% of American households’ total wealth. These statistics illustrate why expanding access to homeownership strengthens both individual families and the broader economy.

The housing market has deteriorated markedly over the past decade. Available inventory has dropped to 1.18 million homes despite a population increase of 20 million people, while mortgage rates have climbed above 6% from 3.7% a decade ago. The consequences are stark: the median age of first-time homebuyers has reached 40, the highest recorded level in U.S. history, reflecting intensifying barriers for younger Americans attempting to enter the market.

The 21st Century ROAD to Housing Act represents nearly 50 coordinated bills designed to streamline federal construction processes, expand financing options for manufactured and rural housing, and provide communities with planning resources. However, additional policy reforms remain critical, including modernizing capital gains exclusion thresholds that have remained unchanged for nearly 30 years and no longer reflect inflation. Such updates would immediately increase housing supply by encouraging current homeowners to sell and move.

Real estate’s economic footprint demonstrates why homeownership expansion matters beyond individual families. The sector comprises nearly one-fifth of U.S. GDP, with each home sale generating $125,310 in local economic activity and creating two jobs. Policymakers must continue pursuing comprehensive solutions that address financing barriers, insurance costs, zoning restrictions and discriminatory practices blocking Americans from homeownership.