NAR: Americans want a tax plan that supports the American dream

As Congress continues its effort to rewrite major portions of the tax code, the National Association of Realtors (NAR) unveiled new polling showing just what the American people are looking for in the legislation. The national survey shows overwhelming bipartisan support for tax provisions that strengthen homeownership, support small business owners and the middle class, and unlock more housing inventory.

Fully 80% of those polled now believe it’s not a good time to buy a home — sharply contrasting with the 69% who felt it was a good time a dozen years ago — prompting the public to look to Congress for practical, pro-housing tax policies that make homeownership more affordable.

The survey found that:

• 92% favor allowing first-time homebuyers to save in tax-free accounts for a down payment.
• 91% want to maintain critical home incentives like the mortgage interest deduction.
• 86% support keeping lower income tax rates for individuals and married couples.
• 83% support the 20% deduction for independent contractors and small businesses.
• 80% support tax incentives to revitalize underserved communities through investment.
• 76% support tax credits to convert unused commercial space into much-needed housing.
• 61% of voters support increasing State and Local Tax (SALT) deduction limits or removing limits altogether.

These are not abstract policy ideas — they directly impact the ability of middle-class Americans to buy, sell, or invest in real estate and for communities to grow sustainably. NAR’s members live and work in every zip code in America and see this play out daily.

Congress has three paths for pro-housing policy: Extend the tax provisions that are working, consider new measures that reflect today’s economy, and resist harmful new “pay-fors.” NAR lays out the polling results and a suite of tax ideas on its federal legislative priorities page at FlyIn.Realtor.

One increasingly urgent issue is the outdated capital gains exemption limits, which haven’t been adjusted since 1997. These limits are now penalizing middle-class homeowners—especially seniors—who choose not to sell their homes to avoid steep tax bills. As a result, fewer homes are entering the market, creating a growing strain on both housing inventory and affordability.

NAR’s poll shows that 67% of voters support doubling the capital gains exemption on the sale of a primary residence — from $250,000 to $500,000 for individuals and from $500,000 to $1 million for couples.

Each year, the exclusion affects more and more middle-class Americans, and a capital gains cliff is fast approaching.

Lawmakers must also resist the temptation to raise taxes on real estate through measures like eliminating 1031 like-kind exchanges or capping deductions for state and local taxes paid by small businesses. These so-called “pay-fors” would backfire by driving up housing costs and limiting consumer choice.

NAR will continue working with members of Congress in both parties to ensure that tax reform reflects the priorities of homeowners, renters, and small businesses. The American people support pro-housing tax policy, and now Congress has the data that proves it.

*The national survey of 1,000 registered voters was conducted by Public Opinion Strategies and Hart Research April 3-6, 2025, and has a margin of error of 3.10%

Patrick Newton is the vice president of advocacy communications and outreach for the National Association of Realtors® and co-host of The Advocacy Scoop podcast along with NAR Chief Advocacy Officer Shannon McGahn.