With the midterm elections just days away, housing affordability remains a pressing issue for voters — and a growing legislative priority for lawmakers in Washington.
Congress has spent much of the past two years considering proposals aimed at lowering housing costs, helping first-time buyers, unlocking existing inventory and encouraging new construction. But despite growing bipartisan interest in housing policy, many of those proposals remain stalled in committee as voters prepare to decide which party will control Congress.
Lawmakers scored a significant bipartisan victory in July with the passage of the 21st Century ROAD to Housing Act, a sweeping package aimed at boosting housing supply and addressing barriers to development. Yet much of the broader housing agenda remains unfinished, including proposals to expand homebuyer assistance, increase affordable housing investment and raise the capital gains exclusion on home sales.
Some bills have continued attracting additional congressional support in recent weeks, but none of the proposals highlighted in September has advanced since. With both chambers largely out of session until after Election Day on Nov. 3, further legislative action will likely have to wait until lawmakers return to Washington.
Inman revisited the most consequential housing bills that could help shape the federal government’s approach to supply, affordability and homeownership in the next Congress.
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 and the Senate bill before Finance, and neither has advanced beyond referral. Support has continued growing, however, with 159 House cosponsors and 25 Senate cosponsors as of late October, including lawmakers from both parties. With Congress largely out of session until after the election, inclusion in a broader tax package during the lame-duck session or next Congress remains 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 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. In May, the bipartisan sponsors released planned revisions, including more flexibility for state housing finance agencies and a shorter four-year authorization, that they intend to carry into the next version of the bill, whether in a year-end package or the next Congress.
Revitalizing Downtowns and Main Streets Act — H.R. 2410
What it does: This proposal would establish a federal investment tax credit covering 20 percent of qualifying costs to convert nonresidential buildings into housing, increasing to 30 percent in certain areas where development is particularly challenging. At least 20 percent of the resulting units would need to remain affordable to households earning no more than 80 percent of area median income for 30 years.
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: Introduced in March 2025, the bipartisan bill has attracted 57 cosponsors, including lawmakers from both parties, but remains before the House Ways and Means Committee without advancing beyond 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 both measures drawing broad bipartisan support. 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, while the Senate bill remains before Finance. The Senate measure was discussed during an Oct. 21, 2025, Senate Banking housing subcommittee hearing, but neither version has advanced beyond committee.
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: Introduced by Reps. Scott Peters, D-Calif., and Chuck Edwards, R-N.C., in September 2025, the bipartisan legislation remains before the House Financial Services Committee. Rep. Emilia Strong Sykes, D-Ohio, joined as a cosponsor in October, but the bill has not advanced beyond committee referral.
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: Both versions remain in committee, with the House bill before Judiciary and the Senate measure before Banking, Housing and Urban Affairs. The House proposal has continued attracting support, reaching 23 cosponsors following the addition of Rep. Joaquin Castro, D-Texas, on Oct. 22. Neither chamber has advanced the legislation beyond referral.
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 HUD, Treasury, Agriculture, Veterans Affairs and the Federal Housing Finance Agency to coordinate housing research and market data and submit a joint report to Congress identifying opportunities to improve housing 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: Introduced in September 2025, the bipartisan bill remains before the House Financial Services Committee and the Veterans’ Affairs Subcommittee on Economic Opportunity. It has attracted 40 cosponsors, including two who joined on Oct. 1, but has not advanced beyond committee referral.
Streamlining Affordable Housing Act — H.R. 10901
What it does: Introduced by Rep. Norma Torres, D-Calif., on Oct. 22, the legislation would establish a new HUD grant program to help states streamline financing and administrative processes for affordable housing development. The proposal would authorize $90 million annually from fiscal 2027 through 2029, including funding to consolidate state financing programs, simplify applications for builders and improve access to development assistance.
Why it matters: Affordable housing developers often navigate multiple state agencies, financing programs and administrative requirements to move projects forward. By simplifying those processes, the proposal aims to reduce administrative barriers that can delay projects and increase development costs. States that meet the bill’s initial requirements could also use funding to streamline zoning, permitting and Low-Income Housing Tax Credit administration.
Status: Torres introduced the bill without cosponsors on Oct. 22, and it was referred to the House Financial Services Committee. It has not advanced beyond committee referral.
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.
The flood insurance program’s current authorization expires Dec. 11, the same day a temporary spending measure funding federal agencies, including HUD, is set to expire. The deadlines leave Congress facing another round of funding and insurance negotiations during its post-election lame-duck session.
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.
Implementation of the law is also underway. On Oct. 22, the Treasury Department proposed regulations clarifying restrictions on large institutional investors purchasing single-family homes. Under the law, beginning Jan. 7, 2027, investors controlling at least 350 single-family homes will generally be prohibited from purchasing additional properties, subject to exceptions for activities including build-to-rent and renovate-to-rent programs.
For qualifying programs designed to help renters become homeowners, the proposal also establishes a framework for a 30-day first-look period and a right of first refusal before investors sell the properties to other buyers.
Reporter’s note: This story was originally published on Sept. 24, 2026, and has been updated to reflect the latest available information.
Additional note: AI tools were 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.
