Economists Suggest Solutions to Senior Housing and Tax Challenges

Outdated capital gains tax caps are preventing millions of seniors from downsizing, causing a housing market logjam and reducing inventory for families. Updating these caps to reflect home price growth could unlock housing supply, boost economic mobility, and address market inefficiencies, especially in high-cost areas. The current tax structure disproportionately burdens middle-income homeowners and seniors, while the wealthy often sidestep taxes. Reforming the tax code could stimulate market activity, increase government revenue, and improve housing affordability.