‘The Big Money Show’ breaks record home resales as high mortgage rates sideline buyers and bring the housing market to a standstill.
Buying a home was once the foundation of the American Dream, but for millions of families that dream is priced out of reach.
With the typical down payment having more than doubled since 2019 to $30,400, Florida Sen. Rick Scott is trying to sidestep “economy-crushing” inflation. Its newly introduced American Dream Accounts Act would allow first-time buyers to protect their savings from the IRS, allowing them to make a down payment more quickly and reclaim a stake in the country’s future.
“Growing up in public housing, I watched my family struggle to make ends meet. For us, owning a home was out of reach because we couldn’t afford it,” Scott said in a news release. “Today, so many Americans face the same struggle, especially young first-time buyers who view home ownership as a crucial milestone in helping them achieve their American dream.”
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On Friday, the senator introduced the bill, which would allow tax-free contributions and qualified withdrawals for down payments. Individuals under the age of 35 can contribute up to $7,500 annually, while those over the age of 35 have a catch-up limit of $10,000 per year.
A “for sale” sign is shown outside a home for sale in Los Angeles, California on August 16, 2024. (Getty Images)
There is flexibility for couples because two buyers can combine the distributions, allowing for a total qualified distribution of up to $500,000.
However, non-qualified withdrawals will face a 10% penalty, following traditional 401(k) rules to ensure the money remains focused on buying a home.
Sen. Rick Scott, R-Fla., joins “Mornings with Maria” to discuss President Donald Trump’s $1.5 billion defense effort, the $50 billion Pentagon request, rising conflict costs in Iran and the Senate showdown over the SAVE Act.
Realtor.com’s latest down payment report shows that the average amount needed for a home rose to $30,400 by the third quarter of 2025, doubling from 2019. Additionally, the report estimates that it will take about seven years to save for that down payment.
“Unfortunately, years of inflation-driven, economy-destroying Democratic-led policies aren’t making things any easier. That’s wrong, and that’s why I fight every day for real solutions that make housing more affordable for everyday Americans and make the dream of homeownership a reality,” Scott said.
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“The Big Money Show” panel discusses Congress’ plan to address the nation’s housing crisis.
“Homeownership means stability and economic mobility,” he continued. “This bill will help first-time buyers save faster, and make their money go further, easing the financial barrier to homeownership for families.”
While Senator Scott’s bill brings the initiative to the federal level, several states, including Virginia, Colorado, Iowa and Oregon, have pioneered savings accounts for first-time homebuyers to help Americans achieve their homeownership goals.
