Bizzarro’s bill to cut taxes for first-time homebuyers advances
Bill would help young people realize American dream
Rep. Ryan Bizzarro April 8, 2025 | 10:37 AM
HARRISBURG, April 8 – State Rep. Ryan Bizzarro’s bill to help young people realize the American dream by cutting taxes for first-time homebuyers advanced out of committee.
A growing number of Pennsylvania’s younger generation have been locked out of becoming first-time homebuyers, denying them an opportunity of building generational wealth. Bizzarro’s bill that provides first-time homebuyer savings accounts passed out of the House Housing and Community Development Committee Tuesday.
“I have championed a tax cut to help a younger generation shut out from buying a house,” said Bizzarro, who represents Millcreek and Fairview townships. “Higher rent, housing shortages, and wealthier buyers with the ability to pay in cash, have kept a generation of potential buyers from experiencing the benefits of buying your first home, including building equity, tax advantages, forced savings by continually investing in your home, and community involvement.”
Bizzarro’s bill would allow first-time homebuyers to deposit money into a savings account for the exclusive purpose of purchasing a home. Money could be deducted from state income tax, and family or friends can also contribute. Money deposited can be used for a down payment or closing costs for the purchase of a single-family home in Pennsylvania.
The median age for first-time homebuyers has reached an all-time high of 38 years old. Compare that to the typical first-time homebuyers from the 1980s, when Americans in their late 20s accounted for first-time homebuyers. The percentage of first-time homebuyers is at its lowest rate – 24% – since the National Association of Realtors began collecting data in 1981.
Another contributing factor is starter homes are much less affordable than they were five years ago. Homebuyers need to earn $77,000 to afford the typical starter home. The U.S. market saw starter-home prices skyrocket by 51% since August 2019 and 163% since 2012.
House Bill 818 advances for consideration to the full House chamber.