More Californians Benefit from Profitable Home Sales

Home prices have risen 147% over 15 years, outpacing the unchanged federal capital gains tax exclusion of $250,000 for singles and $500,000 for couples since 1997. This causes many homeowners, especially in California, Hawaii, and Washington, to face significant tax bills when selling, leading them to delay moves and reduce housing supply. This trend is spreading nationwide, limiting homeowners' ability to access home equity as liquid wealth.