Barrett, McGuire Introduce Legislation to Revive the American Dream for First-Time Homebuyers

Washington, D.C. - Congressmen Tom Barrett (MI-07) and John McGuire (VA-05) today introduced the American Dream Act to help more individuals and families afford their first home. Specifically, the bill would incentivize older Americans to sell their homes by expanding the waiver of capital gains taxes on a sale to a first-time homebuyer.

"The American Dream of homeownership has become out of reach for too many young families across Michigan and the United States," said Barrett. "Housing prices continue to rise as the supply of starter homes on the market shrinks because too many seniors feel financially locked into the properties they own. By offering an expanded tax incentive for selling to a first-time homebuyer, this legislation will finally shake things up by moving homes out of the rental market and into the purchase market while also driving costs down for new buyers and helping seniors afford the retirement they deserve."

The average age of a first-time homebuyer in America is now 40 years old and continues to rise, as staggering hurdles inhibit new and younger families looking to invest in a home. Current law offers exemptions on capital gains taxes for people of any age, but only for their principal residence. The American Dream Act would waive capital gains taxes for seniors age 65 and older who sell any single-family home, including a vacation or rental home, for $500,000 or less to a first-time homebuyer. This expanded tax relief would put more houses on the market that are within reach for first-time buyers while also allowing seniors to sell their properties at an affordable price.

"I am proud to introduce this legislation, which takes meaningful steps toward restoring the American Dream of homeownership and a future for young people," said Congressman McGuire. "The American Dream has always been to own a home, however that dream has been slipping away. Today's housing market makes it increasingly difficult for first-time buyers to find an affordable home, leaving many with little choice but to become a life-long renter. The American Dream Act addresses this challenge by incentivizing homeowners 65 years-of-age and older to sell properties valued under $500,000 to first-time buyers; increasing inventory and ensuring our younger generations have a fair opportunity to achieve homeownership. I am grateful to Representative Tom Barrett (MI-07) for co-leading and Representative Pete Stauber (MN-08) for being an original cosponsor of this vital piece of legislation. We are taking real steps to help the younger generation achieve the American Dream of homeownership by increasing the availability of affordable homes in our country."

This legislation is the latest in a series of policy initiatives Barrett is leading that are aimed at Reviving the American Dream, one of the pillars of his newly announced Blueprint for a Better America.

Click here to read the bill.

Click here to learn more about the Blueprint for a Better America.