June 23, 2026

As Featured on CBS Los Angeles

A Real Estate Expert's Take on the 21st Century Road to Housing Act

Todd Jones, a Los Angeles-based real estate agent with over 21 years of experience and $330 million in closed transactions, was recently quoted on CBS Los Angeles discussing the newly passed 21st Century Road to Housing Act. His take? The bill is well-intentioned but misses the real culprit choking LA's housing market.

"There's just not a lot of inventory," Todd told CBS reporters. "And what there is, they don't usually like. If it is in really good shape, you're going to have a bunch of people buying it."

That inventory shortage, however, isn't primarily caused by corporate investors or restrictive zoning—it's caused by something far simpler: interest rates.

What the Bill Actually Does

The 21st Century Road to Housing Act made headlines after passing the Senate with overwhelming bipartisan support (85 yeas, 5 nays). Here's what it aims to accomplish:

• Streamlines permitting for new housing development nationwide

• Bans large institutional investors controlling 350+ single-family homes from buying more properties

• Ties federal grants to communities that actually build new housing

• Expands manufactured housing access across the country

On the surface, these changes sound promising. Less red tape + fewer corporate buyers = more homes for regular people, right?

Not exactly.

The Real Problem: The 3.5% Lock-In

The housing market is frozen, but not because of Wall Street. It's frozen because of math.

Here's the scenario Todd hears constantly from his clients:

A homeowner bought their house in 2021 at a 3% mortgage rate. They'd love to move—upgrade to a bigger place, downsize, relocate—but there's a problem: if they sell, they'll immediately have to buy a new home at today's 7% rates.

Even on a "horizontal move" (selling a $800K house to buy a similar $800K house), the monthly mortgage payment jumps from ~$3,400 to ~$5,300. That's $1,900 more per month. Most people can't absorb that hit.

So they don't sell. The house stays off the market. Inventory remains frozen.

This isn't about greedy investors or restrictive zoning. It's a simple economic incentive problem: too many people are locked into historically low rates and unwilling to trade them for triple their current payment.

What the Bill Misses

The Corporate Investor Ban: Well-intentioned, but it's not the core issue.

"While [corporate investors] are present," Todd pointed out on CBS, "one of the biggest reasons inventory is frozen actually has nothing to do with corporate buyers."

The institutional investor problem is real in some markets, but in Los Angeles—where the median home costs over $500,000—corporate landlords aren't the primary obstacle. The lock-in effect of 3% mortgages is.

What Could Actually Help: Raise the Capital Gains Tax Threshold

Here's Todd's solution: update the capital gains tax exemption for home sales.

The current federal exemption (allowing sellers to exclude $250K-$500K in gains from capital gains tax) hasn't been updated since 1997. That was 27 years ago. The threshold is way too low for today's market.

"If you raise the capital gains tax threshold," Todd told CBS, "you're going to get a whole lot more help to the average buyer because sellers are going to finally want to sell."

Why? Because unlocking sellers means unlocking inventory. And inventory, not restrictive zoning or corporate ownership, is what's choking the market.

Example: A seller bought a home in 2000 for $400K. It's now worth $1.2M. The $800K gain exceeds the exemption cap. Federal capital gains tax could consume $200K+ of their profit. At that point, moving isn't just emotionally hard—it's financially punishing.

Raise the exemption to $750K or $1M, and suddenly millions of homeowners have a real financial incentive to sell.

What This Means for LA Buyers and Sellers (Right Now)

For Buyers

• Don't expect immediate relief. Even with the bill passing, inventory won't suddenly flood the market. The changes take time to propagate (permitting takes months, new construction takes years).

• The current advantage still belongs to prepared buyers. Interest rates remain elevated, but rates can change. Pre-approval and fast execution are still critical.

• Manufactured housing may open new pathways. If you're flexible on home type, watch for new manufactured communities in or near LA.

For Sellers

• You're still in a position of power. Inventory is your scarcest resource. The bill doesn't change the supply-demand dynamic—not immediately.

• The capital gains conversation is just beginning. This bill doesn't address capital gains taxes, but Todd's point is being heard. Advocating for threshold updates could be part of your strategy.

• Timing matters. If you're considering selling and have held the home long enough to benefit from capital gains exemptions, your accountant's input matters as much as your agent's.

The Bottom Line

The 21st Century Road to Housing Act addresses real problems—permitting delays, excessive investor portfolios in certain markets, and insufficient housing supply in specific regions. But it doesn't address the dominant factor keeping inventory frozen in high-cost markets like LA: the disincentive created by trading a 3% mortgage for a 7% one.

Until that math changes—either through rate reductions, tax policy shifts, or long enough time to normalize expectations—inventory will remain tight.

The bill is well-intentioned. But good intentions don't unlock sellers. Lower mortgage rates or higher capital gains exemptions do.

Need Guidance on Your LA Real Estate Decision?

Whether you're thinking about buying, selling, or just trying to understand what the housing market looks like right now, Todd Jones has 21+ years of experience helping LA clients navigate these exact decisions.

Todd Jones

Realtor, Certified Residential Specialist

Rodeo Realty | DRE #01481426

🏆 Top 1.5% of agents nationwide | $330M+ in closed transactions

📱 (310) 882-5565

🌐 toddjonesrealtor.com

Equal Housing Opportunity. Todd Jones | Rodeo Realty | DRE #01481426