Congress Passes Landmark Housing Affordability Bill Amid Bipartisan Push
Congress passed the "21st Century Road to Housing Act," the largest housing affordability legislation in decades, with overwhelming bipartisan support. The bill aims to boost housing supply, reform zoning restrictions, and limit large investors from buying single-family homes, now heading to President Trump's desk for signature.
What Happened
The House passed a major housing affordability bill Tuesday aimed at boosting the supply of homes and cracking down on large investors' buying up houses. The bill, called the 21st Century Road to Housing Act, passed 358 to 32 in the House. The bill passed 358-32 one day after it cleared the Senate by a vote of 85-5. It now goes to President Donald Trump, who is supportive and is expected to sign it into law.
The Housing Crisis
According to the real estate broker Redfin, a family needs an income of about $117,000 a year to afford the typical home on the market, almost $30,000 more than what most U.S. households earn. The bill comes as a recent Zillow analysis found the cost of buying a starter home is $1 million or more in a record 242 cities across the country. A 2024 study from the government-sponsored housing enterprise Freddie Mac estimated that U.S. faces a shortfall of 3.7 million units contributing to its housing crisis.
Key Provisions
The bill aims to tackle America's housing affordability crisis primarily through encouraging more supply, including of manufactured homes; and through encouraging local governments to reform zoning and permitting restrictions. The bill also includes a first-of-its-kind limit on private equity by prohibiting large investors from buying single-family homes. Removing the chassis requirement could cut $5,000 to $10,000 off of construction costs, and allow for designs that could more easily incorporate a second story or basement.
Bipartisan Achievement
It is a rare bipartisan achievement for a largely gridlocked Congress in Trump's second term, giving Republicans, who control both chambers, a desperately needed victory on the politically potent issue of lowering costs just months ahead of the midterm elections. The idea behind the bill, led by Republican Tim Scott and Democrat Elizabeth Warren in the Senate, and Republican French Hill and Democrat Maxine Waters in the House, was to tackle that housing shortage directly.