A 1997 Tax Law Is Quietly Trapping Colorado Senior Homeowners — And Congress May Finally Be Doing Something About It

A national trend worth knowing — and it hits close to home right here in Southmoor Park, Centennial, and Greenwood Village. A lot of the seniors I work with have lived in the same home for 20, 30, sometimes 40 years. They've watched their home go from something they worked hard to afford into something worth far more than they ever expected. That's a good problem to have — until you try to sell. Here's the part that catches people off guard. The federal tax law that protects homeowners from capital gains when they sell was written in 1997. The exemption is $250,000 for a single filer, $500,000 for a married couple. Those numbers haven't changed in almost 30 years. Meanwhile, Colorado's median home price hit $593,000 in early 2026, with Denver close behind at $568,000. And in neighborhoods like ours — where steady, long-term appreciation is the norm — a lot of families are sitting on equity that puts them well past those old thresholds. A recent study commissioned by the National Association of Realtors found that nationally, about 29 million homeowners — 34% of all homeowners — may already have enough equity to exceed the $250,000 single-filer cap. Colorado was specifically named as one of the states most affected. By 2030, projections show more than 56% of homeowners nationally could be in that position. What does that mean practically? For seniors who want to downsize — maybe move into a single-level home, reduce maintenance, free up cash for healthcare or family — the capital gains exposure can make it feel like the door is locked. The equity is there on paper, but accessing it comes with a real cost that many families haven't planned for. A Centennial homeowner wrote publicly about this exact situation earlier this year. He's watched his home value climb far beyond what he imagined when he bought it, and now that he's ready to make a change, the tax bill on that appreciation is standing in the way of options his family deserves. Here's the good news: two bills are currently before Congress that would raise the exclusion — the More Homes on the Market Act would push it to $500,000 for single filers and $1 million for married couples, with an inflation adjustment built in. It already has 93 House cosponsors. Nothing is guaranteed, but this is the most serious legislative push on this issue in years. What I tell the people I work with is this: your home is not just where you live. It's a tool. And when the time comes to use it — whether that's downsizing, freeing up money for care, or passing something on to your family — you deserve to go into that decision with clear eyes about what the tax picture looks like, what your options are, and how to time things in a way that protects what you've built. This is the kind of conversation I have every day. Not pressure, not predictions — just steady, practical information so families can make good decisions. 📍 Sources: Rocky Mountain Voice — https://rockymountainvoice.com/2026/04/03/frozen-in-place-how-a-1997-tax-law-may-be-trapping-colorados-senior-homeowners/ 📍 Sources: 5280 Magazine, Denver Housing Market 2026 — https://5280.com/what-to-know-about-the-denver-housing-market-in-2026/ 📍 Sources: PwC / Urban Land Institute, Emerging Trends in Real Estate 2026 — https://www.pwc.com/us/en/industries/financial-services/asset-wealth-management/real-estate/emerging-trends-in-real-estate-pwc-uli/property-type-outlook/senior-housing.html 📍 Sources: NIC MAP / Multi-Housing News, 2026 Senior Living Trends — https://www.multihousingnews.com/senior-living-trends/ For those of you who've been in your home in Southmoor Park, Centennial, or Greenwood Village for 15 years or more — have you actually sat down and looked at what your capital gains exposure would be if you sold today? — Kevin Lundy | The HomeBridge Group at eXp Realty