Progress will come through dozens of legislative, regulatory, administrative, and local reforms, each of which removes one obstacle, lowers one cost, or opens another door, writes Craig Cheatham.
Too many opinion pieces dismiss housing policy proposals because they don’t solve everything at once.
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You’ve probably seen this play out before. When legislation is introduced or executive action is announced that modestly increases supply, improves affordability, and reduces market frictions, the reaction is predictable. It won’t solve the housing crisis.
As if the only acceptable solution is a single, all-encompassing policy that instantly makes housing affordable for everyone, everywhere. That thinking is not only unrealistic, it’s counterproductive.
Imagine if the developers at Impossible Foods decided not to release a plant-based meat alternative because it alone would not end world hunger. This product dramatically reduces environmental impact, uses fewer resources, and improves health outcomes.
But according to that logic, these benefits mean nothing unless you solve the entire problem. Thankfully, innovation doesn’t work that way. Progress comes from accumulation.
Housing policy should be no exception.
Policies to watch when working towards affordability
Take the ROAD to Housing Law. It targets regulatory barriers and financing inefficiencies that slow development, particularly for smaller builders. No one would argue that it will improve affordability overnight, but it will significantly reduce friction in the system. The More Homes on the Market Act encourages homeowners to sell by addressing capital gains restrictions that prevent them from selling. More listings mean more choices, especially for first-time buyers who are currently locked out. The Housing Framework Act will help states and local governments modernize their zoning and land use regulations. It won’t mandate increased density everywhere, but it will create a pathway for communities that want to add supply to do so more easily. The Downtown and Main Street Revitalization Act focuses on converting underutilized commercial properties into housing. Anyone who has ever walked through a half-empty downtown knows this is a low-hanging fruit. It’s not a panacea, but it’s a substantial victory. The Empowering First-Time Home Buyers Act improves access to down payment assistance and financing tools. It won’t make your home cheaper, but it will help qualified buyers compete in a tough market. The Fair and Equal Housing Act strengthens enforcement against discrimination and modernizes fair housing protections. This is a reminder that availability and affordability mean little if access is not equitable.
Each of these proposals “moves the needle.” Nothing can solve everything. They are both important.
Beyond Congress, there is momentum at other levels as well. States have legalized accessory dwelling units. Cities are reducing minimum lot sizes and parking requirements and reconsidering all the built-in regulatory costs added to new construction.
Regulators are considering expanding options for manufactured homes and relaxing requirements for expensive environmental features. Some jurisdictions are experimenting with zoning overlays and density bonuses. Even bond financing proposals aimed at infrastructure or housing production could become less constrained over time.
If there is one policy measure that could have an immediate and significant impact, it would be the reduction, even temporarily, of capital gains taxes on residential real estate, or their complete abolition. Even a short-term adjustment could free up inventory of longtime owners who want to relocate but cannot justify a tax increase.
If sellers are willing to sell, subsidies are not needed to increase supply. But let’s not withhold support for all the other good ideas going on right now in order to withhold the proposals we want around capital gains.
Last fall, I attended the National Housing Affordability Crisis Summit in Washington, DC. At the end of the event, I sat down with Congressman Jimmy Gomez of California and suggested that we don’t have to choose between ideas. We need to enact them all. I was encouraged when he agreed.
That moment stuck with me because it reflects what is missing from so many public discussions: a willingness to build on solutions rather than pit them against each other.
Housing is too complex and there is no silver bullet. It’s always been that way.
Progress will come through dozens of legislative, regulatory, administrative, and local reforms, each of which will remove one obstacle, lower costs, or open a new door. Every penny makes a difference, especially in a market as large and important as housing.
So here’s a call to action: Stay tuned in the coming months to see when the National Association of Realtors’ advocacy team issues a request to support one of these proposals. Follow NAR instructions. And don’t let the fact that no single idea solves everything stop you from pushing good ideas to become law.
Moving the needle still moves us forward. And now, forward is exactly where we need to go.
Craig Cheatham is President and CEO of The Realty Alliance, North America’s largest network of residential real estate companies. Previously, he served as COO of the State Association of Realtors and CEO of the International Federation of Real Estate Licensing and Regulatory Agencies.
