Why is the capital gains tax making the U.S. housing crisis worse?

Real estate agent greeting couple at house (Credit: Getty Images)

A dollar in 2024 has about the same purchasing power as 51 cents in 1997, but a key tax law remains stuck in the 20th century. 

If you’re selling your home in 2025, you might wonder why the capital gains tax exclusion for your primary residence—$250,000 if you’re single, $500,000 for couples—remains unchanged from 1997, the year it was implemented.