Congresswoman Nancy Mace has introduced the Making Homeownership Affordable Again Act, a bill aimed at addressing housing affordability in South Carolina. The legislation proposes to eliminate capital gains taxes on the sale of primary residences and on any home sold to a first-time homebuyer.
South Carolina has seen rapid population growth, with a 1.5 percent increase in 2025, adding nearly 80,000 new residents in one year. This growth has contributed to rising home prices that have outpaced wage increases. In Charleston County, for example, the median home price reached $715,000 in 2025. Current federal tax law allows taxpayers to exclude up to $250,000 ($500,000 for joint filers) from capital gains taxes when selling their primary residence. These limits were set in 1997 and have not changed despite significant increases in home values over the past three decades.
Mace stated: “Every hardworking South Carolinian deserves a shot at homeownership, not just the wealthy elite. Our tax code punishes families for building wealth. You work decades to pay off your home, and when you finally sell, Washington demands a cut. As the fastest-growing state in the country, longtime residents face massive tax bills simply because their neighborhoods became desirable. This bill puts a stop to it and helps young families achieve the American Dream of homeownership.”
The proposed act would remove existing caps on capital gains exclusions for primary residences and extend these benefits to all homes sold to first-time buyers regardless of whether it is the seller’s main residence.
Supporters say eliminating these tax barriers could encourage more homeowners—especially seniors or empty nesters—to sell their properties when needed rather than holding onto them due to potential tax liabilities. Increased mobility could help unlock additional housing supply for young families entering the market.
Mace added: “Washington has made homeownership harder and more expensive at every turn, and this bill fixes it,” she said. “Your home sale profits belong to you, not the IRS. Helping a young family buy their first home should be encouraged, not taxed. This is about letting South Carolina families keep what they’ve built and getting Washington’s hands out of their pockets. It’s time to make homeownership affordable again.”
Nancy Mace currently serves as U.S Representative for South Carolina’s 1st District since replacing Joe Cunningham in 2021 (https://mace.house.gov/about). Before her congressional service beginning in 2021, she was part of the South Carolina House of Representatives from 2018 through 2020 (https://bioguide.congress.gov/search/bio/M001212). Mace was born in Fort Bragg, North Carolina in 1977 and resides in Charleston; she graduated from The Citadel with a BS degree in 1999.
