WASHINGTON, D.C. — On Monday, August 18, 2025, Sen. Elizabeth Warren (D-Mass.) outlined a bold plan to tackle America’s housing crisis, proposing a federal tax on vacant homes to incentivize owners to sell or rent, thereby increasing housing supply. Speaking at a Capitol Hill press conference, Warren argued the policy could address the nation’s shortage of 5.5 to 6.8 million homes, which has driven median home prices to $450,000, per Yahoo Finance.
“This is a practical way to fix America’s cost of housing crisis,” Warren told reporters, emphasizing that taxing vacant properties estimated at 15 million nationwide could unlock inventory for first time buyers and renters. The plan targets speculative investors, including hedge funds, who hold empty homes, exacerbating affordability issues. “When homes sit empty while families struggle, that’s a market failure we can fix,” she added, per Yahoo Finance.
Key elements of Warren’s proposal include:
- Vacancy Tax: A 2% annual federal tax on the assessed value of vacant homes held over six months.
- Revenue Use: Funds redirected to affordable housing programs and down-payment assistance.
- Local Support: Incentives for cities to streamline zoning and permitting to speed construction.
The plan aligns with Warren’s broader push to address wealth inequality, citing data that 1% of owners hold 30% of vacant properties. Critics, including real estate groups, argue the tax could discourage investment, with the National Association of Realtors warning of “unintended market distortions.” Posts on X reflected mixed reactions, with @HousingNow praising Warren’s focus on supply but others, like @MarketWatch, questioning enforcement feasibility. As housing costs strain middle-class budgets, Warren’s proposal faces a tough road in a divided Congress but signals a growing push for federal action.
Source: Yahoo Finance
