04/05/2026
Nearly 29 million U.S. households already exceed the capital gains tax exclusion, a growing factor keeping homes off the market. In many metros, longtime owners are delaying sales to avoid a large tax bill, adding to inventory shortages beyond high rates and affordability.
The issue is back in Washington, where lawmakers are considering reforms to the primary-home capital gains exclusion, still capped at $250,000 for single filers and $500,000 for couples, unchanged since 1997, despite home values rising more than 260%.