Illinois Realtors Backs Proposal for Homebuyer Savings Accounts

Illinois Realtors are backing a legislative effort to bolster first-time homebuyers struggling with surging home prices and interest rates.

Senate Bill 148 would establish tax-deductible savings accounts designed to assist residents in purchasing single-family homes, Capital News Illinois reported. The accounts would allow individuals to set aside funds exclusively for homebuying costs while receiving state income tax deductions.

Under the proposal, individuals could deduct up to $5,000 per year from their taxable income, while joint filers could deduct up to $10,000 annually. Contribution limits over 10 years would be capped at $25,000 for individuals and $50,000 for joint accounts.

Eligibility for the program would extend to first-time homebuyers and those who have not owned a home in the past decade.

The push for legislative action comes as the state’s median sales price reached nearly $300,000 last year. That figure reflects an 8 percent jump from the previous year and a nearly 40 percent leap from 2019.

Illinois Realtors’ Jim Clayton says the industry has been working on multiple initiatives to help prospective buyers navigate affordability challenges. The proposal is one step toward making homeownership more accessible across the state, he said.

Lawmakers have placed SB148 under review by the Senate Revenue Committee, with further action expected in the coming weeks. If passed, the program could serve as a financial resource for those struggling to save amid rising home prices.

While Senate Bill 148 focuses on down payment savings, some lawmakers have turned their attention to property tax relief as another avenue for improving housing affordability.

Sen. Chapin Rose, R-Mahomet, introduced Senate Bill 2246, which proposes capping annual increases in property value assessments to align with inflation. The measure is meant to help homeowners manage rising tax bills, particularly those on fixed incomes.

“This is real; this is hurting people, and it’s all scalable,” he said. “Whether you live in a $100,000 home or $200,000 home or $4,000 home, it’s becoming unaffordable.”

— Andrew Terrell