Proposed Capital Gains Overhaul Aims to Ease Housing Crunch

The Trump administration is weighing reforms to capital gains taxation, including inflation indexing and higher home-sale exemptions, to address housing affordability. The proposal targets a lock-in effect where homeowners avoid selling due to tax burdens, reducing available family-sized homes. Supporters argue that raising the current $250,000 single-filer exclusion would unlock supply and provide relief amid a shortage of nearly 5 million units.