More Housing Construction Won't Be Enough

 

“Your editorial "Trump's Housing Blow-Up" (June 25) is right that the 21st Century ROAD to Housing Act is flawed. Although Congress's bill may ease some of the regulatory hurdles blocking new homes from hitting the market, the truth is that even lower interest rates won't fix America's housing crisis.

 

Supply is locked in as the result of years of ultralow interest rates, and a tax regime that disincentivizes the millions of homeowners from selling.

 

To increase supply meaningfully, Washington should focus on tax-policy changes and private-market solutions that motivate high-equity homeowners and mom-and-pop landlords to sell. Increasing the primary residence capital gains exclusion for the first time in 30 years would be a good place to start. Providing incentives and protections for seller financing, rent-to-own or exchanges of homes currently owned by mom-and-pop landlords would be a win not only for millions of aging Americans, but the countless young aspiring home buyers who are stuck between high interest rates and forever renting.

 

Lawmakers should be applauded for their bipartisan efforts in passing this bill. They had good intent, but even the best federal efforts to "cut red tape" won't solve the country's housing woes.

 

We can't simply build our way out of this. There are millions of homes in this country held by people who don't really want to own anymore. It's time to fix that.

 

Ari Rubin

 

CEO, Flock Homes

 

Menlo Park, Calif.” [1]

 

1. More Housing Construction Won't Be Enough. Wall Street Journal, Eastern edition; New York, N.Y.. 02 July 2026: A14.