S. 3332: More Homes on the Market Act

This bill, titled the "More Homes on the Market Act," proposes to amend the Internal Revenue Code to increase the exclusion of gain from the sale of a principal residence. The current tax exclusion amounts for individuals and married couples when selling their home are set to be increased significantly as follows:

Increased Exclusion Amounts

• The exclusion cap for individuals will rise from $250,000 to $500,000.
• The exclusion cap for married couples filing jointly will increase from $500,000 to $1,000,000.

Adjustment for Inflation

Starting in 2026, these amounts will be adjusted for inflation. This means that the exclusion amounts will increase in line with the cost of living, ensuring that they do not lose value over time. The adjustments will be calculated based on a specified formula, which includes rounding to the nearest $100.

Effective Date

The changes proposed by this bill will apply to sales and exchanges of homes occurring after the enactment of the law.

Purpose and Impact

By increasing the exclusion amounts, the bill aims to make it financially easier for homeowners to sell their homes without facing a significant tax burden on their capital gains. This could potentially encourage more homeowners to enter the market, contributing to a greater supply of homes available for sale.

Relevant Companies

• HD (Home Depot Inc.) - As a major home improvement retailer, Home Depot may experience increased demand for home improvement supplies as more homeowners sell and upgrade their homes.
• LOW (Lowe's Companies, Inc.) - Similar to Home Depot, Lowe's may also benefit from increased consumer spending on home renovations as homeowners seek to maximize the value of their properties before selling.
• PHM (PulteGroup, Inc.) - As a builder of new homes, PulteGroup could see an uptick in demand if more homeowners decide to move or upgrade, particularly in markets with limited housing supply.