The National Association of REALTORS® has racked up a series of policy victories in recent months as the organization continues to evolve as the chief advocacy organization for real estate professionals.
Agents and brokers have faced a challenging landscape in recent years. The COVID-19 pandemic shut down viewings in 2020. Interest rate increases, low housing inventory and rising construction costs all have hampered home sales, while prices continue to climb in many markets.
“We’re moving fast to stay ahead,” said NAR Chief Advocacy Officer Shannon McGahn. “More data, more digital tools and more direct engagement with members. Whether it’s AI, insurance costs or disaster recovery, we’re tying our advocacy directly to what Realtor members are facing right now. And we’re making sure members see that NAR has their back in Washington and beyond.”
Wins on the national stage
McGahn identified the sweeping “One Big Beautiful Bill Act” tax and housing bill recently passed by the U.S. House of Representatives as one of NAR’s major victories for real estate professionals. She said the bill includes all five of NAR’s top priorities, including boosting the business income deduction from 20% to 23% to benefit “the vast majority” of NAR members, most of whom are independent contractors or small business operators.
“The bill also raises the cap on state and local tax (SALT) deductions from $10,000 to $40,000 for households making under $500,000 — though, unfortunately, the marriage penalty is still in place,” McGahn said. “It locks in today’s individual tax rates and adjusts them for inflation, something 86% of voters supported in NAR’s national poll. On top of that, it keeps the mortgage interest deduction in place and makes it permanent — a key benefit for current and future homeowners. Lastly, the bill protects Section 1031 like-kind exchanges and keeps business SALT deductions available for most real estate pros, helping to support property investment and economic growth.”
The bill narrowly passed in the House by a one-vote margin (215-214) and has not come before the U.S. Senate as of June 15. In addition to the NAR wins, the bill includes significant cuts to federal aid programs such as Medicaid and the Supplemental Nutrition Assistance Program (SNAP), elements that could make passage more difficult in the Senate.
McGahn encouraged Realtor members to closely watch the bill’s progress. NAR is remaining vigilant to preserve the positive provisions and prevent harmful measures from being added, she said.
“We’re continuing to fight for things that directly impact Realtor members’ bottom line — like access to Association Health Plans and protecting independent contractor status, which is how about 90% of our members run their businesses,” McGahn said.
“We’re also backing the More Homes on the Market Act,” which would update the capital gains exemption when you sell your primary home,” she added. “That limit hasn’t been touched since 1997, even though home values have changed a lot since then. NAR’s latest research shows a ‘capital gains cliff’ is coming for the middle class if we don’t act. It’s a quiet crisis, but it’s growing and we’re making sure Congress hears about it.”
NAR’s May 2025 report “Housing Affordability & Supply: Rising Inventory, But for Whom?” outlined that need, finding a shortage of nearly 416,000 listings priced at or below $255,000 to meet the needs of homebuyers earning between $75,000 and $100,000 annually. The “More Homes on the Market Act” would double the capital gains exclusion for sales of primary residence from $250,000 to $500,000 for single filers, and $500,000 to $1 million for couples filing jointly, while also indexing those amounts for future inflation.
Looking ahead, NAR is also working closely with the current presidential administration on regulatory issues, like permitting reform, to facilitate new construction faster.
“Plus, don’t forget the fall budget fight,” McGahn said. “We’ll be working hard to make sure housing programs don’t get cut.”
Advocacy accomplishments and local victories
McGahn singled out NAR’s successful backing of the VA Home Loan Program Reform Act as a major advocacy victory. The bill passed in May by unanimous voice vote, codifying a temporary provision implemented by the Department of Veterans Affairs in 2024. The bill enables veterans to compensate their real estate agents directly and also establishes a claim process intended to help veterans who have fallen behind on mortgage payments. Veterans can purchase homes without providing a down payment through the VA Home Loan Guaranty program. According to NAR, VA lenders provided financing for approximately 490,000 home purchases and refinances in 2024.
“It protects veterans and makes sure they can work with a Realtor member without losing out on benefits,” McGahn said of the legislation.
“I’m also proud of how we’ve defended independent contractors and protected vital tax deductions year after year,” she continued. “Some of the best wins are the things we’ve kept out of legislation, like harmful tax hikes that would’ve been devastating to the real estate economy. And then there’s our legal advocacy. We stood up for mom-and-pop landlords during the eviction moratorium and took it all the way to the Supreme Court. The result? A major win for property rights and a reminder that NAR is the strongest defender of private property in the country.”
NAR is working hard to bring more homes to market, McGahn said. Those efforts start with policy, including pushing for incentives to convert unused buildings into housing, expanded tax credits and working for smart zoning and land use.
In Chicago in March 2024, NAR helped block a $1 million-plus real estate transfer tax referendum that McGahn said would have made housing even less affordable for buyers and renters. The resolution placed on the ballot by the Chicago City Council would have created a tiered taxing structure. Any sale up to $1 million would have been taxed at 0.6%; those over $1 million up to $1.5 million would have been taxed 2% on the amount over $1 million; and sales over $1.5 million would have been taxed 3% on the amount over $1.5 million. According to the Chicago Association of Realtors, a property selling for $1.2 million would have been taxed 0.6% on the first $1 million and then taxed 2% on the $200,000. Thanks in part to NAR’s efforts, the transfer tax remains a flat 0.75% for all properties.
“And we’re backing fair-housing initiatives that support growth, like new education and outreach from the Chicago Association of Realtors funded through our grant program,” McGahn said. “These efforts directly support more listings, more transactions and stronger communities.”
Increasing involvement
The relaunch of the bipartisan Congressional Real Estate Caucus as part of the 119th Congress this past January indicates that legislators are ready to take up real estate issues and support housing policy. The caucus first formed in 2024 with four members and has grown to include more than 50. NAR is among the caucus’ supporters, along with industry trade groups such as the National Association of Home Builders and the National Apartment Association.
McGahn encouraged Realtor members who want to become involved in or supportive of NAR’s advocacy efforts to look at the work the Realtors Political Action Committee (RPAC) is doing. Since its formation in 1969, RPAC has promoted the election of pro-Realtor candidates across the country.
During the 2024 federal election cycle, RPAC was the largest contributor to candidates, with more than $6 million in direct contributions disbursed to federal candidates, national political party committees and leadership political action committees. With contributions split evenly between Democrats and Republicans, RPAC achieved a 97% success rate.
“It is the most bipartisan PAC in the country, supporting candidates at all levels who champion real estate issues, regardless of political party,” she said. “Start by paying attention to the issues that affect your business. Respond to calls for action. Talk to your local leaders and get involved in your association’s efforts. You don’t have to do everything, but doing something makes our collective voice stronger.”
McGahn recommended that agents simply take one step in becoming more involved.
“You don’t need to know everything — just stay curious and engaged,” she said. “Sign up for alerts, respond to a call for action or ask your broker or association how to get involved with RPAC. Once you start paying attention, you’ll see how much our advocacy matters and how much power Realtor members have when we speak with one voice.”
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