With the midterm elections quickly approaching, concerns over housing supply and affordability have reached a fever pitch and become a major issue for voters. Lawmakers from both parties have increasingly put their names behind bills aimed at lowering housing costs, helping first-time buyers, unlocking existing inventory and making it easier to build more homes.
In a July Pew Research Center survey focused on the 2026 midterm elections, economic issues were by far the topic registered voters most wanted congressional candidates to discuss, with the cost of living and affordability emerging as the most common response.
Congress has already notched one major housing-policy achievement this year. The bipartisan 21st Century ROAD to Housing Act became law in July after years of work by lawmakers and housing-industry groups. The National Association of Realtors, which lobbied heavily for the measure, has continued pressing Congress on a broader slate of housing legislation focused on supply and affordability.
Republicans and the Trump administration have also emphasized deregulation, permitting reform and changes to federal mortgage policy as part of their housing affordability agenda. Separate fights over the Consumer Financial Protection Bureau’s funding and authority could also affect mortgage lending and servicing, though those regulatory battles fall outside the pending housing bills highlighted below.
With numerous proposals still pending, Inman narrowed the field to 11 bills that could have some of the most consequential effects on new construction, housing supply and inventory, and affordability in the months ahead.
More Homes on the Market Act — H.R. 1340 / S. 3332
What it does: The bipartisan legislation would double the capital gains exclusion on the sale of a primary residence, from $250,000 to $500,000 for individuals and from $500,000 to $1 million for married couples, and automatically adjust those limits over time to account for inflation.
Why it matters: Supporters argue that the limits, which have remained unchanged since 1997, discourage longtime owners with substantial equity from selling and effectively lock inventory off the market. NAR has made the proposal a major 2026 priority and is currently framing it as one of the fastest ways to increase existing-home supply.
Status: The House version remains before Ways and Means, while the Senate bill is before Finance. Neither has advanced beyond introduction and referral, making inclusion in a broader tax package one possible path forward.
First-Time Homebuyer Tax Credit Act — H.R. 4717 / S. 2402
What it does: This legislation would establish a refundable federal tax credit equal to 10 percent of a first home’s purchase price, capped at $15,000. Eligibility and the size of the credit would be subject to income and local home-price limits.
Why it matters: Unlike proposals intended to increase supply over time, the bill would directly reduce the cost of purchasing a first home for qualifying households. The tradeoff is that giving buyers more purchasing power does not add more homes to the market, and in a supply-constrained market, it can also put upward pressure on prices.
Status: Both versions were introduced in July 2025 and remain before the House Ways and Means and Senate Finance committees, respectively. Neither chamber has taken action beyond committee referral.
Federal Home Loan Bank affordable housing bill — H.R. 10325
What it does: Introduced by Rep. Maxine Waters, D-Calif., the bill would increase the mandatory share of Federal Home Loan Bank earnings devoted to the system’s Affordable Housing Program. The Consumer Federation of America estimates the change would generate roughly $300 million in additional annual funding for affordable housing development, down payment assistance and home repair programs, without requiring additional taxpayer funding.
Why it matters: The 11 Federal Home Loan Banks provide liquidity to more than 6,500 member institutions, including banks, credit unions and community development financial institutions. Housing advocates have argued that the system should devote more of its earnings to its public housing mission. In a broader reform proposal, the Coalition for Federal Home Loan Bank Reform has called for doubling the mandatory Affordable Housing Program contribution from 10 percent to 20 percent, which it estimates would add about $600 million annually for affordable housing.
Status: The House Financial Services Committee considered H.R. 10325 on Sept. 16, but a motion to report the amended bill favorably failed 21–28. That leaves the measure facing a significant setback in the House, even as housing and consumer groups continue pushing for broader FHLBank reform.
Uplifting First-Time Homebuyers Act — H.R. 3526 / S. 2867
What it does: Designed to make it easier to pull together a down payment, this bill would raise the amount first-time buyers can withdraw from an IRA without paying the usual 10 percent early-withdrawal penalty from $10,000 to $50,000.
Why it matters: The proposal targets a major barrier for many prospective first-time buyers: saving enough cash for a home’s down payment and covering closing costs. It would expand access to buyers’ existing retirement savings rather than create a new federal subsidy. NAR lists the bill among its current legislative priorities.
Status: The House version remains before Ways and Means, while the Senate companion, introduced by Sens. Ruben Gallego, D-Ariz., and Todd Young, R-Ind., is before Finance. Neither has advanced beyond committee, though the Senate bill’s bipartisan sponsorship distinguishes it from some other first-time buyer proposals.
Neighborhood Homes Investment Act — H.R. 2854 / S. 1686
What it does: Seeking to make homebuilding and rehabilitation more feasible in distressed neighborhoods, this legislation would create a federal tax credit to support the construction and rehabilitation of owner-occupied homes where development costs exceed what finished properties can command on the market. The credit is designed to help close that gap and make projects financially viable.
Why it matters: The credit is intended to make starter-home projects possible in communities where builders currently cannot make the numbers work, with a particular focus on for-sale housing rather than rental development.
Status: The House bill remains before Ways and Means and the Senate version before Finance. Both have bipartisan sponsorship, while sponsors and housing groups have continued discussing revisions that could be incorporated into subsequent legislation.
Revitalizing Downtowns and Main Streets Act — H.R. 2410
What it does: This proposal would create a federal investment tax credit for converting qualifying nonresidential buildings into affordable housing.
Why it matters: The bill targets two persistent real estate problems at once — underutilized commercial buildings and the shortage of housing. Office-to-residential conversions have attracted substantial interest, but challenging layouts, financing hurdles and construction costs can make projects difficult to pencil out. A tax credit is intended to help close that feasibility gap. NAR also lists this bill among its 2026 legislative priorities.
Status: The bipartisan bill was introduced in March 2025 and remains before House Ways and Means. Despite broad bipartisan sponsorship, it has not advanced beyond committee referral.
Affordable Housing Credit Improvement Act — H.R. 2725 / S. 1515
What it does: Focused on expanding and modernizing the Low-Income Housing Tax Credit, the proposal includes a broad series of changes involving tenant eligibility, project financing and credit administration.
Why it matters: LIHTC is a central federal financing tool that helps drive the construction of affordable rental housing across the country. Congress already adopted two pieces of the broader proposal in 2025, permanently increasing annual Housing Credit authority by 12 percent and lowering the bond-financing threshold from 50 percent to 25 percent. According to the National Council of State Housing Agencies, roughly two dozen other provisions remain unenacted.
Status: The House bill remains before Ways and Means and the Senate version before Finance, with the Senate measure drawing broad bipartisan sponsorship. Advocates continue pushing the remaining provisions either through the standalone bills or as part of future tax legislation.
Affordable Housing Bond Enhancement Act — H.R. 7414 / S. 1511
What it does: The bill would update federal rules for mortgage revenue bonds and mortgage credit certificates used by state housing finance agencies, including increasing limits on certain home improvement loans and changing refinancing and recapture provisions.
Why it matters: Those programs can help lower- and moderate-income households access lower-cost mortgage financing, giving this technical tax legislation a direct connection to homeownership affordability.
Status: The House version, introduced in February 2026, remains before Ways and Means. The Senate bill is before Finance and received additional attention during an Oct. 21, 2025 Senate Banking housing subcommittee hearing on housing innovation, but neither version has advanced to a floor vote.
Faith in Housing Act — H.R. 5601
What it does: Seeking to open underused land owned by churches and other religious organizations to new housing development, this bill would preempt certain state and local laws that block affordable housing on those properties.
Why it matters: Religious institutions collectively control substantial amounts of land, including parcels in expensive housing markets where zoning can constrain redevelopment. The bill is notable because it tackles supply by asserting federal authority over certain local land-use restrictions, rather than relying primarily on grants or tax incentives.
Status: The bipartisan bill was introduced by Reps. Scott Peters, D-Calif., and Chuck Edwards, R-N.C., in September 2025 and remains before House Financial Services. It has not advanced beyond committee, and the federal-preemption component is likely to be a central issue in any future debate over the measure.
Fair Housing Improvement Act — H.R. 5443 / S. 2827
What it does: This measure would amend the Fair Housing Act to prohibit discrimination based on a person’s source of income, veteran status or military status.
Why it matters: The change would expand federal fair-housing protections for veterans, service members and renters who rely on housing vouchers or other lawful sources of income. It could also create new federal compliance obligations for landlords, property managers and real estate professionals.
Status: The legislation remains in committee. The Senate version was introduced in September 2025 and referred to Banking, Housing and Urban Affairs, with no subsequent action listed in the current federal record, making it one of the less advanced bills in this roundup.
Saving the American Dream Act — H.R. 5387
What it does: Rather than establishing a tax credit or housing-production program, the Saving the American Dream Act would require federal agencies with housing responsibilities to coordinate their work and report to Congress, creating a more unified federal approach to affordability.
Why it matters: Federal housing policy is currently divided among HUD, Treasury and other agencies. Supporters of the effort argue that greater coordination could reduce conflicting policies and give Washington a more coherent strategy for addressing affordability.
Status: The House bill was introduced in 2025 and remains pending in the 119th Congress, with NAR continuing to include it among its 2026 housing priorities. Because the proposal focuses on federal coordination rather than directly funding housing, its eventual effect would depend heavily on how it is implemented.
Assessing NAR’s legislative priorities
NAR’s current legislative agenda is centered heavily on housing supply, with the trade group estimating the country is short 4.7 million homes. Following the passage of the 21st Century ROAD to Housing Act in July, NAR has continued pressing lawmakers on housing supply, with its latest advocacy materials putting particular emphasis on unlocking existing inventory through the More Homes on the Market Act and proposed changes to the capital gains exclusion for longtime homeowners.
The organization is also pushing lawmakers to fully fund several HUD programs, including fair housing enforcement and housing counseling services, while calling for long-term reauthorization of the National Flood Insurance Program. NAR says the flood program supports roughly 500,000 home sales each year and argues that lapses or uncertainty around coverage can disrupt transactions in flood-prone communities.
Passage of ROAD has not ended NAR’s work on the legislation itself. Many of the law’s new grants and housing programs still depend on future congressional appropriations and HUD rulemaking, including incentives for local housing production, zoning and permitting reforms, commercial-to-residential conversions and home-repair programs. NAR is now encouraging states and local governments to prepare for those programs, while pressing Congress to provide the funding needed to put them into effect.
Reporter’s note: ChatGPT was utilized in reviewing and verifying current federal housing bills, legislative priorities and related reporting for this story. All substantive details were checked against congressional records, primary-source materials and prior reporting before publication.
