How Do We Solve Housing Affordability?

Lately the phrase “housing affordability crisis” gets thrown around constantly.

And it is real.

Prices rose quickly. Rates jumped. Buyers feel squeezed.

But here is the real question.

How do we ease the crisis without crashing prices and wiping out homeowner equity?

Recently, Dave Ramsey proposed an idea I actually agree with. He suggested raising the capital gains exclusion on primary residences. Today it sits at $250,000 for individuals and $500,000 for married couples.

That rule was put in place in 1997.

In 1997 the median U.S. home price was under $150,000. The exemption has not meaningfully changed in 28 years.

Home values have.

In markets like Jupiter, long-term owners can easily exceed that $500,000 threshold through appreciation alone. That creates hesitation. Many homeowners stay put not because they love the timing, but because they fear the tax consequences.

If the exemption were modernized or indexed to inflation, more owners would likely sell. That would increase supply organically. No forced price drops. No artificial correction. Just movement.

That is how you ease pressure without destroying equity.

Locally this matters.

Jupiter home values remain supported in part because long-term owners are sitting on substantial gains and not moving. Inventory stays tight. Quality properties still command attention.

Whether this rule will get updated is unknown, but it is nice to know people are actually thinking on how to solve this issue.

What is known is this. Many sellers overestimate their exposure. Some fall entirely under the current exclusion. Others owe far less than assumed once real numbers are reviewed.

Before assuming you are stuck, it is worth running the math.

If you have owned your home for years and have wondered what selling would actually look like after taxes, I am happy to walk through it with you privately.