National Advocacy Updates from NAR
HUD Releases State and Local Best Practices for Home Construction
The Department of Housing and Urban Development (HUD), in coordination with the White House, released the State and Local Best Practices for Home Construction on May 20, implementing President Trump's March 13 executive order directing federal agencies to develop regulatory best practices for states and localities on housing construction. The report calls on state and local governments to reduce construction costs, unlock land for residential development, and accelerate permitting timelines through various policy options, noting that regulatory costs account for more than $100,000 of the final price of a new single-family home.
"NAR applauds HUD's State and Local Best Practices for Home Construction as a constructive contribution to the national conversation on housing supply. Today's release reflects the Trump administration's commitment to addressing the housing supply crisis, building on the president's March executive order directing federal agencies to develop regulatory best practices for states and localities," said Shannon McGahn, NAR executive vice president and chief advocacy officer. "The report's focus on reducing unnecessary regulatory costs, unlocking land for residential development, modernizing permitting, improving transparency, and accelerating construction timelines is consistent with NAR's long-standing support for practical state and local reforms that expand housing opportunity. REALTORS® see firsthand that housing affordability is fundamentally constrained by a lack of available homes, and state and local reforms that reduce barriers to responsible housing production are essential to expanding opportunity for buyers, renters, and communities across the country."
Qualified Opportunity Zone 2.0 Update
The One Big Beautiful Bill Act, enacted in July 2025, renewed and made permanent an updated Qualified Opportunity Zone program—QOZ 2.0—with several important changes. While the original program—QOZ 1.0—remains in effect for existing investments and investors through 2047 (with the new investment window closing on December 31, 2028), QOZ 2.0 and its new zones and rules for new investments will be in effect starting on January 1, 2027.
The IRS has provided guidance to states on the nomination process for new zones. NAR encourages REALTORS® to participate in this process by engaging with their state and local associations, governments, and economic development organizations to provide their expertise during the zone nomination process, which formally begins July 1, 2026. Please note, however, that most states will begin the vetting process ahead of that date. REALTORS® are experts in their communities and markets, and have unique insights they can provide to improve which zones are nominated and thus help make the program a bigger success.
To help REALTORS® understand the key differences between the two QOZ programs, NAR has compiled a chart of their major differences and similarities, which you can find here.
A few points to note:
- Besides the guidance already released to states on the nominating process, the IRS is actively developing specific guidance for investors for QOZ 2.0, and NAR will update its resources for members as that guidance is finalized.
- QOZ 1.0 and QOZ 2.0 have a two-year overlap period from January 1, 2027 through December 31, 2028, during which the OZ 1.0 investment tracts remain valid and continue to qualify for investment benefits. During this period, investors should have the opportunity to choose between the 1.0 and 2.0 tracts, depending on final guidance. However, the QOZ 2.0 program is expected to have 25% fewer overall zones than QOZ 1.0. Moreover, the new rural zones with enhanced tax benefits are only available with the 2.0 version.
- For more in-depth information about QOZ 1.0, visit NAR’s Qualified Opportunity Zone Toolkit.
NAR Comments on Proposed Independent Contractor Rule
NAR recently submitted a comment letter in support of the new proposed independent contractor rule issued by the United States Department of Labor. In February 2026, the U.S. Department of Labor issued a new Notice of Proposed Rule (NPR) for how workers should be classified under the Fair Labor Standards Act (FLSA).
The new rule adopts an economic reality test, which includes a five-factor test or analysis for how workers should be classified under the FLSA. The rule proposes that two of the five factors would be core factors for determining a worker’s classification. The key determinative factors would be “the nature and degree of control over the work” and “the worker’s opportunity for profit or loss.” The proposed rule is more favorable and offers a framework that is more predictable and consistent for the industry to follow. In its comment letter, NAR also encouraged the Labor Department to consider providing an exemption for real estate professionals under the law to ensure that federal labor laws are consistent with the treatment of real estate professionals for tax law purposes.
NAR values and prioritizes worker classification matters and will continue to advocate in support of practitioners. Additionally, NAR will continue to provide updates regarding independent contractor matters.
House Energy & Commerce Working Group Introduces National Data Privacy Legislation
The House Energy & Commerce Privacy Working Group introduced the SECURE Data Act (H.R. 8413), based on model legislation adopted by 19 states that provides consumer data rights, limits how personal data is collected and used, and relies on enforcement by regulators.
The bill would create consumer rights to notice, access, correction, portability, deletion, opt out, and opt in for certain data processing activities. These rights would be enforced by the Federal Trade Commission (FTC), while preserving the authority of state attorneys general to act where the FTC has not initiated an enforcement action. The bill does not create a private right of action for consumers to sue businesses.
This represents a reset in the federal consumer data privacy debate. Compared to past proposals, its requirements are more workable and closely aligned with existing state consensus privacy models, and it is widely viewed as a starting point for negotiation as Congress considers national data privacy legislation through regular order.
What This Means for Real Estate:
- The bill would establish a single national data privacy standard, replacing the current patchwork of state laws.
- Real estate businesses operating in multiple states could comply with one uniform federal framework, rather than navigating differing state requirements.
- The bill includes an FTC registry for data brokers—businesses that sell consumer personal data without a direct relationship and derive more than 50% of their revenue from those sales.
- Most real estate businesses, including MLSs, are unlikely to be covered because they primarily handle property data rather than personal data, or do so at the direction of consumers.
- For larger or more complex businesses, the bill generally aligns with existing data practices, though applicability may depend on scale and how data is used.
- Overall, a uniform national standard would provide greater certainty and predictability for real estate businesses and reduce litigation risk, particularly for those operating across multiple jurisdictions.
A high-level summary of the SECURE Data Act, including key provisions, applicability thresholds, and compliance obligations, is provided here.
MLS Advocacy in Action — Recent Washington Reports
Competition Policy (DOJ/FTC)
NAR Comments on DOJ/FTC Business Collaboration Guidance for MLSs
- Urged DOJ and FTC to reaffirm that MLSs are procompetitive infrastructure that support transparent, efficient markets
- Emphasized that sharing factual property data helps expand seller exposure and reduce buyer search costs
- Highlighted the importance of clear guidance to reduce uncertainty for MLS operations
Copyright & Data Protection
NAR Opposes Copyright Office Fee Increases
- Opposed proposed increases to MLS database registration fees
- Advocated for modernizing the registration system instead of raising costs
- Highlighted risks from large-scale data scraping and AI-driven misuse
Data Privacy Legislation
House Introduces National Data Privacy Legislation (SECURE Data Act)
- Would establish a single national privacy standard, replacing state-by-state rules
- Most MLSs are unlikely to be directly covered, but NAR is engaged to ensure that remains the case
- Could improve certainty and reduce compliance complexity for multi-state operations