I've owned and lived in my primary residence for about 3 years now. I am about to sell it in a few months and, when searching online for tax information, I saw many references to both Section 121 and the 1031 Exchange, and often the same article will mention them side by side, which can be confusing.
From what I understand, Section 121 allows you to exclude gains of up to $250,000/$500,000 (if you're single/married respectively), regardless of whether you buy a new home or not, provided that the home was your primary residence for two or more years in the last five years. This is a very different criterion compared to the 1031 Exchange (which seems to be for investment properties and not primary residences).
I just wanted to confirm that the tax exclusion provided by Section 121 is not contingent on the purchase of a new home.