NAR Legislative Summit 2027
The National Association of Realtors Legislative Summit brings 10,000+ Realtors to Washington DC to lobby Congress on housing policy. The 2027 agenda covers the mortgage interest deduction, housing supply reform, flood insurance reauthorization, and post-settlement agent compensation rules.
2027 legislative agenda and buyer impact
| Issue | NAR ask | Impact on buyers |
|---|---|---|
| Mortgage Interest Deduction | Restore $1M limit; expand to first-time buyers | Higher deduction for itemizers; ~13% of taxpayers |
| NFIP Reauthorization | 5-year reauthorization with rate modernization | Eliminates closing delays in flood zones |
| NAR Settlement implementation | Consumer education funding; prevent state override bills | Transparent buyer agent compensation |
| Housing supply (zoning) | Federal grants tied to ADU and multifamily permitting | Long-term price moderation via supply increase |
| LIHTC expansion | Double Low-Income Housing Tax Credit allocation | More workforce and entry-level housing |
| Lock-in effect relief | Tax incentive for long-term owners to sell | More inventory from move-up sellers |
The housing supply problem NAR is trying to solve
The US has an estimated housing deficit of 3–5 million units, built up over a decade of underbuilding after the 2008 financial crisis. At 7% mortgage rates, the lock-in effect — where existing homeowners with 3–4% mortgages are reluctant to sell and lose their rate — compounds the supply shortage. The NAR monthly existing home sales data shows inventory near historic lows in most markets.
NAR's supply agenda targets both barriers: zoning rules that limit new construction, and tax incentives that reduce the financial pain for long-term owners to sell. If the More Homes on the Market Act passes — offering a capital gains exclusion bump for homeowners who have lived in a home 10+ years — economists estimate it could release 200,000–400,000 additional listings annually at full scale.
Flood insurance and mortgage closings
About 5.1 million active NFIP policies are in force. For buyers in flood zones, the NFIP is not optional — most lenders require it. The NFIP reform debate centers on FEMA's Risk Rating 2.0, which repriced policies to reflect actuarial flood risk (many coastal properties saw premiums double or triple). NAR advocates for a glide path to limit annual premium increases, arguing that sudden premium spikes depress home values and block sales in coastal markets that are already among the most expensive in the country.
Common questions
What is the NAR Legislative Summit and what does it accomplish?
The NAR Legislative Summit is an annual fly-in where Realtor members from all 50 states meet with their Congressional representatives to advocate for housing-related legislation. It is one of the largest organized lobbying efforts in Washington. Past outcomes include preserving the mortgage interest deduction, securing flood insurance reauthorization, and influencing FHA/VA loan limit adjustments. It shapes the Congressional housing policy agenda for the second half of each year.
What is the mortgage interest deduction and who benefits from it?
The mortgage interest deduction (MID) allows homeowners who itemize their federal taxes to deduct interest paid on up to $750,000 in mortgage debt (reduced from $1 million pre-2018 under the Tax Cuts and Jobs Act). At 7% interest on a $600,000 loan, the first-year interest is about $42,000 — deductible if you itemize. However, the 2017 TCJA nearly doubled the standard deduction, making itemizing less common. Today, only about 13% of taxpayers itemize, so the MID primarily benefits higher-income homeowners in high-tax states. NAR consistently advocates for restoring or expanding the MID.
What is the National Flood Insurance Program (NFIP) and why does it affect home sales?
The National Flood Insurance Program (NFIP), administered by FEMA, is the primary source of flood insurance for most US homeowners. Lenders require flood insurance for homes in Special Flood Hazard Areas (SFHAs). When Congress fails to reauthorize the NFIP (it has lapsed 20+ times), sales in flood zones freeze — lenders won't close without insurance and FEMA can't issue new policies during lapses. The 2027 Summit will include NAR's push for a multi-year NFIP reauthorization to end the uncertainty that repeatedly disrupts closings in coastal and flood-prone markets.
How did the 2024 NAR settlement change agent compensation?
The August 2024 NAR settlement (resolving class action suits over buyer broker compensation) changed the rules: sellers are no longer required to offer compensation to buyer's agents via MLS, and buyers must now sign written representation agreements before touring homes. The result: buyer agent fees are now more transparent and negotiable, but buyers in some markets may pay their agent directly. NAR's 2027 Summit lobbying includes defending the settlement framework against potential additional legislation and advocating for consumer education funding around the new structure.
What housing supply legislation is NAR pushing in 2027?
NAR's 2027 legislative agenda includes: (1) The More Homes on the Market Act — tax incentive for long-term homeowners to sell, targeting the lock-in effect from low-rate mortgages. (2) Zoning reform incentives — federal grants conditioned on local ADU legalization and by-right multifamily permitting. (3) LIHTC expansion — Low-Income Housing Tax Credit funding for workforce housing. (4) Federal surplus land disposal — directing unused federal properties to affordable housing development. These supply-side measures are expected to be bipartisan focal points given the cross-ideological consensus that the US has a housing shortage.