Biden Proposes $10,000 Tax Credit To Free Up Starter Homes, But Critics Question Its Impact
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Biden proposed a $10,000 tax credit to incentivize "locked-in" homeowners to sell their starter homes and move, freeing up supply.
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The tax credit aims to address low housing inventory and high prices that have priced many first-time buyers out of the market.
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Critics argue the credit is too small to motivate enough sellers and could further drive up prices by stoking demand.
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Starter homes now cost a record $243,000 on average, 45% more than pre-pandemic, making ownership unattainable for many.
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The policy's effectiveness depends on passage in a divided Congress during an election year, which is uncertain.