Raja Krishnamoorthi is Tackling the Housing Crisis Head-On

The Illinois congressman has introduced legislation that makes the promise of homeownership and generational wealth building achievable once again for working families
Raja Krishnamoorthi
Raja Krishnamoorthi

Raja Krishnamoorthi is Tackling the Housing Crisis Head-On

The Illinois congressman has introduced legislation that makes the promise of homeownership and generational wealth building achievable once again for working families

For too many families across Illinois, the dream of owning a home feels further out of reach than ever. Rising housing prices, limited inventory, and steep upfront costs have locked working and middle-class families out of the market — even when they can afford monthly mortgage payments. That’s why Congressman Raja Krishnamoorthi is tackling the housing crisis head-on with new legislation designed to make first-time homeownership more attainable and life more affordable across Illinois. 

On January 15, Raja introduced the First Home Affordability Act, a bill aimed at breaking down one of the biggest barriers facing first-time buyers: the upfront cost of purchasing a home. The legislation comes as affordability reaches a crisis point. According to a recent Bankrate report, more than 75 percent of homes on the market are unaffordable for first-time buyers, squeezing families who are ready to put down roots but can’t clear the initial financial hurdle. 

“For many Illinois families, the cost of buying a home has been pushed out of reach by surging housing prices,” said Raja. “My legislation, the First Home Affordability Act, creates a refundable tax credit for first-time homebuyers, helping break down that barrier and giving working families a fair shot to achieve the American Dream of building a middle-class life.”

Raja’s bill would create a refundable tax credit of up to $25,000 for qualified first-time homebuyers, delivered over the first five years of homeownership — equal to as much as 10 percent of a home’s purchase price and up to $5,000 per year. The policy is designed to help families stabilize their finances early in homeownership, build equity, and remain rooted in their communities. 

“When you can own your home, and you’re actually making payments that go toward building up the value of your investment, you’re basically encouraging saving at the same time that you are enabling people's housing security,” Raja explained. 

The First Home Affordability Act is targeted to ensure it benefits working and middle-class families. The credit would apply only to buyers purchasing a home as their primary residence, reinforcing long-term ownership rather than speculative investment. 

The legislation also includes enhanced support for community workers who keep Illinois running. First responders, K–12 teachers, and childcare workers would be eligible to receive the full $25,000 credit in the first year of ownership — recognizing both their essential service and the unique affordability challenges they face.

For Raja, the First Home Affordability Act is part of his broader effort to lower costs and make everyday life more affordable for Illinoisans. From housing to childcare to healthcare, he has made affordability a central focus of his work in Congress — fighting for policies that help families keep more of what they earn and build long-term financial security. 

“If we want strong communities and a strong middle class, we have to make sure families can afford to live, work, and build a future right here in Illinois,” Raja said.

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