WHY WE CARE TODAY’S HOME BUYERS & SELLERS WHO WE ARE HOMEOWNERSHIP PART AGENT-ASSISTED SALES OF THE AMERICAN DREAM AT ALL-TIME HIGH REAL ESTATE ACCOUNTS FOR 1/5 OF THE GROSS

% % % DOMESTIC PRODUCT. 91 74 84 7% For Sale By Owner 2% Other

Agent-assisted 91% Non-owners Owner Non-owner who want to own a home in the future 84% OF NON-HOME

OWNERS WANT TO OWN EXPENSES THAT DELAYED A HOME IN THE FUTURE. SAVING FOR A DOWN PAYMENT ADULT COMPOSITION OF HOME BUYER HOUSEHOLDS 13 % of buyers cited saving for a down 50% payment as the most difficult task Married couples 63% in the buying process % 37 35% COMMERCIAL REAL Single women 18% Single men 9% years ESTATE SUPPORTED Median Years Debt Unmarried couples 8% 2 Delayed Home Purchase 8.3 MILLION Student Credit Car AMERICAN JOBS IN 2018. loans card debt loans

BUYING WITH PETS IN MIND WHAT BUYERS WANT Those who select a neighborhood based MOST FROM AGENTS on proximity to vet/outdoor space for pet:

All buyers 15% 70% OF REALTORS® % Unmarried 20% Other 23 VOLUNTEER IN THEIR couples Help finding Help with the right COMMUNITIES. % the price 11% 54%52 house to negotiations purchase 14% Help negotiating 14% the terms of sale THAT R STANDS FOR REALTOR®

REALTORS® DO MORE THAN BUY AND SELL HOMES. A TYPICAL HOMEOWNER’S WE STAND UP FOR THE PROPERTY OWNERS OF TODAY AND TOMORROW. WEALTH IS ESTIMATED TO THAT’S WHO WE ARE. REACH $254,000.

500 NEW JERSEY AVE, NW • WASHINGTON, DC 20001 800-874-6500 • nar.realtor HOW WE WHAT WE

BENEFIT In large and small ways, CARE ABOUT CONSUMERS & THE ECONOMY more than 1.3 million REALTORS® advocate every day as small Real estate is the foundation of wealth building for the middle income Americans and a critical link in the flow PENDING ISSUES BEFORE CONGRESS of goods, services, and income for millions of people. Real estate is clearly a major driver of the U.S. economy, business owners and on behalf of accounting for one-fifth of the gross domestic product (GDP). Below are a few issues REALTORS® care about during the 116th Congress. the nation’s 75 million property Additional issues and research are available at www.nar.realtor/advocacy. Commercial real estate supported 8.3 million American jobs in 2018 (a measure of both new and existing jobs), generating $325.9 billion in salaries and wages. This contributed $1.0 trillion to U.S. GDP.1 owners. Our goal is to strengthen the ability of Americans to own,

NOT ENOUGH NEW REAL ESTATE buy, and sell real property. U.S. ECONOMIC GROWTH CONSTRUCTION INVEST MENT TRUSTS2

2.9% Growth was Total housing starts: 2.3% up in 2018 % U.S. real estate investment trusts FLOOD INSURANCE: FANNIE AND FREDDIE REFORM: 1.5 2.3 M Needed Projected contributed 2.3 million full-time LONG-TERM REAUTHORIZATION, MEANINGFUL REFORM ACCESS TO CREDIT 2017 2018 1.2% 1.3% jobs to the economy in 2017, generating vs. Actual for 2019* Authority for the National Flood Insurance Program (NFIP) to write insurance Earlier this year, NAR unveiled its comprehensive vision to reform our nation’s $ 140.4 B of labor income. expires on May 31, 2019. REALTORS® are working to avoid an NFIP lapse housing finance system to ensure people in Springfield, Mo. have the same 2018 2019 The unemployment rate while advocating for a long-term reauthorization including meaningful rates and access as those in Springfield, Mass. America’s uniqueness of 3.8% *Not enough to meet long-term demand reforms to strengthen program solvency. Reforms include more accurate offering a 30-year fixed rate mortgage ensures affordable mortgage credit decreased as of March 2019 An estimated 80 million Americans compared to 2018. flood mapping, aligning insurance rates to risk, providing property risk for middle income Americans, while a government guarantee and oversight Housing and utilities accounted own real estate investment trusts mitigation resources and opening the door to private flood insurance. stimulates and protects the flow of private capital to homebuyers. for $2.6 trillion of GDP in 2018: through their retirement savings and other investment funds. INCREASED CONSUMER INFRASTRUCTURE: ALL-ENCOMPASSING INVESTMENTS FEDERAL TAXATION CONFIDENCE ON WAGE Infrastructure improvements have been shown to enhance property values by creating The Tax Cuts and Jobs Act included many changes that affect homeownership & INCOME GAINS MORTGAGE REAL ESTATE livable communities and business districts. Poorly maintained streets, public transit, and and the real estate industry. As we close the first tax season under the INVESTMENT TRUSTS HELP FINANCE $795 B traffic congestion in an area impose extra costs throughout the local economy. We urge new rules, REALTORS® are working to protect or support the following $637 B 1.8 MILLION HOMES IN THE U.S. Congress to pursue infrastructure policies that reflect a broad community vision, and policies: extending expired Mortgage Debt Cancellation Tax Relief; fixing 2018 existing Residential investment Commercial continue to advocate for a level playing field for both highway and public transit funding. the marriage penalty on the state and local tax (SALT) deduction cap; and home sales is in new homes construction 5.51 M 5.34 M indexing to inflation the $750,000 cap on mortgage interest deduction down from 2017 and the capital gains exclusion on the sale of a principal residence. RURAL LAND2 TECHNOLOGY: DATA PRIVACY & SECURITY 2017 2018 $ Total real estate input Technology has and continues to transform the way consumers buy, sell, rent, and 4.0 T In 2018, recreational and residential land FAIR HOUSING accounted for 55% of land sales. manage homes, while also impacting the way real estate brokerages operate. As technology drives evolution, our approach to data privacy must evolve as well. Fair housing is integral to our ability to buy, purchase, lease, and occupy Tight inventory conditions remain. NAR Research estimates that the Effective data privacy legislation must establish uniform standards for businesses and real estate in America, having protected our nation’s essential right The year-earlier inventory levels The median price sale of the typical home generates equal protection for consumers, while focusing on transparency and customer choice. to property for more than half a century. Earlier this spring, NAR was have been increased in the last six $ $ of land per acre approximately $80,000 in secondary 5,500 4,500 pleased to support H.R. 5, the Equality Act, which adds fair housing months. But, inventory is still tight. decreased expenditures such as moving protections based on sexual orientation and gender identity. Rising home prices and tight inventory HEALTH INSURANCE: costs and brokerage services. result in affordability challenges. 2017 2018 EXPANDED ACCESS TO ASSOCIATION HEALTH PLANS QUALIFIED OPPORTUNITY ZONES As independent contractors, REALTORS® have long struggled to find and secure 4.9% THE FEDERAL RESERVE CALCULATES The typical purchase value for U.S. affordable health insurance options, with many remaining uninsured. We strongly Qualified Opportunity Zones encourage economic growth in underserved HOMEOWNERS’ EQUITY NOW land is $238,500, ranging from $75,000 for support the U.S. Department of Labor’s final rule expanding access to Association communities through tax incentives for investors who utilize “Opportunity Funds” 2.7% STANDS AT $15.5 TRILLION. residential land to nearly $1 million Health Plans. This rule has been successful and is supported in many states, providing to invest in the Zones. We support supports policies that facilitate the ease of use for agricultural land. high quality, lower cost coverage alternatives to many REALTORS® and their families. of Opportunity Zones to attract real property investment in qualified areas. 2018 2019 U.S. aggregate Median existing Median existing housing valuation home prices home prices are 16.1 T 25.9 T has increased increased projected to in 2018 increase in 2019 2011 2019

1 “The Economic Impacts of Commercial Real Estate, 2019 Edition.” The national homeownership NAIOP, the Commercial Real Estate Development Association. January rate rose at the end of % 2019, https://www.naiop.org/Research/Our-Research/Reports/ 64.8 2018 reflecting thathome Economic-Impacts-of-Commercial-Real-Estate-2019. ownership is an important 2 “REITs by the Numbers.” Nareit. April 18, 2019, https://www.reit.com/ data-research/data/reits-numbers. part of the economy.