Congress Passes Historic Bipartisan Housing Reform Bill
Congress has passed the 21st Century Road to Housing Act, a sweeping bipartisan housing reform package aimed at tackling the nation's 3.7 million unit housing shortage. The House voted 358-32 on Tuesday, following an 85-5 Senate vote the day prior, sending the legislation to President Donald Trump's desk. The bill increases housing supply by loosening restrictive regulations and limiting Wall Street investors from buying homes meant for families.
Why is Congress addressing the housing crisis now?
With midterm elections on the horizon, the affordability crisis has become a central talking point in races across the country. Lawmakers are facing intense pressure to act as housing costs continue to skyrocket. A recent Zillow analysis found that the cost of buying a starter home is now $1 million or more in a record 242 cities across the United States. Meanwhile, a 2024 study from Freddie Mac estimated that the country faces a shortfall of 3.7 million housing units, a systemic deficit that continues to drive up costs and shut everyday Americans out of homeownership.
How does the 21st Century Road to Housing Act work?
The legislation takes a two-pronged approach to addressing the housing shortage by targeting both supply and corporate speculation. First, it loosens restrictive regulations that have historically blocked housing construction, paving the way for more homes to be built. Second, it limits the ability of Wall Street investors to purchase single-family homes, keeping those properties available for families rather than corporate portfolios. Additionally, the bill provides grants to convert vacant buildings into affordable housing. By boosting the overall supply of homes for sale, the legislation aims to lower costs and rebalance the market for everyday people.
What did supporters say about the housing bill?
Senator Elizabeth Warren, the top Democrat on the Senate Banking Committee, celebrated the vote as proof that bipartisan legislation does not have to be weak.
