A Future Without Homeownership?

Congress Must Act Now.

California’s housing crisis isn’t just a policy issue — it’s a personal one. It’s about families struggling to put down roots, young professionals unable to afford their first home, and middle-class workers being priced out of the communities they serve.

Skyrocketing housing costs are driving the dream of homeownership out of reach. The monthly payment for a median-priced home in California now exceeds $5,000. For entry-level homes, costs have surged 88% since 2020 — a reality that is shutting out first-time buyers.

It shouldn’t be this hard to buy a home. In 2024, purchasing a mid-tier California home required an income of $231,000—more than double the state’s median income. Even the most affordable homes required $142,000, nearly 50% more than the median income.

If Congress doesn’t act, an entire generation will be left behind. Homeownership is the foundation of the American Dream—the key to stability, wealth-building, and strong communities. But without action on critical tax policies, that dream is slipping away.

It's time to make homeownership possible again.

Now is THE opportunity to change direction. As Congress revisits the federal tax code, there is an opening to take the bold action needed to ensure that homeownership isn’t just for a select few.

Here are the CALIFORNIA ASSOCIATION OF REALTORS®’ suggestions for reform:

Increase the SALT cap to ensure tax fairness.

Right now, homeowners can only deduct $10,000 of the state and local taxes (SALT) that they already pay. This includes their property taxes. By limiting that deduction, we are making homeownership that much less affordable.

Double the capital gains exclusion on the sale of primary residences (the More Homes on the Market Act).

Homeowners on fixed incomes are concerned they will be hit by a huge tax bill, discouraging them from selling and worsening the housing crisis.

Create a tax credit to incentivize and offset the cost of converting underutilized commercial properties into residential housing.

Supply also must be addressed. There is simply not enough housing being built.

Now, homeownership is under even greater threat. 

Some in Congress are considering changes to the Mortgage Interest Deduction (MID) — one of the most important tools that makes homeownership more affordable. Weakening or eliminating the MID would increase costs for millions of homeowners and make it even harder for future generations to buy a home.

The CALIFORNIA ASSOCIATION OF REALTORS® urges members of Congress to act now to make homeownership possible again.

A Future Without Homeownership?

Congress Must Act Now.

California’s housing crisis isn’t just a policy issue — it’s a personal one. It’s about families struggling to put down roots, young professionals unable to afford their first home, and middle-class workers being priced out of the communities they serve.

It's time to make homeownership possible again. ​​

Now is THE opportunity to change direction. As Congress revisits the federal tax code, there is an opening to take the bold action needed to ensure that homeownership isn’t just for a select few. Here are the CALIFORNIA ASSOCIATION OF REALTORS®’ suggestions for reform:

Increase the SALT cap to ensure tax fairness.

Right now, homeowners can only deduct $10,000 of the state and local taxes (SALT) that they already pay. This includes their property taxes. By limiting that deduction, we are making homeownership that much less affordable.

Double the capital gains exclusion on the sale of primary residences (the More Homes on the Market Act).

Homeowners on fixed incomes are concerned they will be hit by a huge tax bill, discouraging them from selling and worsening the housing crisis.

Create a tax credit to incentivize and offset the cost of converting underutilized commercial properties into residential housing.

Supply also must be addressed. There is simply not enough housing being built.

Now, homeownership is under even greater threat.

The CALIFORNIA ASSOCIATION OF REALTORS® urges members of Congress to act now to make homeownership possible again.

It's time to make homeownership possible again.

Now is THE opportunity to change direction. As Congress revisits the federal tax code, there is an opening to take the bold action needed to ensure that homeownership isn’t just for a select few.

Here are the CALIFORNIA ASSOCIATION OF REALTORS®’ suggestions for reform:

Now, homeownership is under even greater threat. 