Nearly 30-Year-Old Capital Gains Tax Exemption Rules Blamed for US Housing Shortage

With median home prices exceeding $1 million in many U.S. housing markets, some real estate professionals are drawing attention to a 28-year-old capital gains tax law, citing it as one factor contributing to the nationwide housing shortage. A recent report from Realtor.com shows that California is home to 8 of the 10 most expensive housing markets in the United States. San Jose tops the list with a median sales price of $2.02 million, followed by Anaheim and San Francisco at $1.45 million and $1.32 million, respectively. Ken DeLeon, founder of DeLeon Realty in Palo Alto, told The Epoch Times that some communities in the San Francisco Bay Area have experienced skyrocketing home prices, which have jumped 667 percent since 1997—the year the Taxpayer Relief Act was signed into law, allowing married homeowners to exclude up to $500,000 in capital gains from the sale of their primary residence, and $250,000 for single homeowners....