The 21st Century ROAD to Housing Act: A Bipartisan Push for Affordable Housing

The United States Congress has passed a major bipartisan housing bill aimed at addressing the national affordability crisis by increasing supply and limiting large-scale investor purchases.

The House of Representatives approved the legislation on Tuesday by a vote of 358-32, following Senate passage on Monday by a vote of 85-5. The bill now proceeds to President Donald Trump for his signature.

The Crisis Behind the Bill

The legislation directly confronts a national housing shortage estimated by Realtor.com at approximately 4 million units.

Average home prices have risen to around $400,000 — and since 2019, prices have increased by over 50% while wages have grown by just 22%. As of early 2025, the typical income required to afford a median-priced home is approximately $117,000, compared to a median household income of roughly $87,000.

Key Provisions

Restrictions on Large-Scale Investors

The bill prohibits entities that already own 350 or more single-family homes from purchasing additional single-family properties. According to analyses cited by multiple sources, large corporate investors owning 1,000 or more homes in three or more markets represent approximately 3% of the national single-family rental market.

The final version removed a Senate provision that would have required large investors to sell newly constructed "build-to-rent" homes within seven years, with the renter receiving the first opportunity to purchase. The House version allows investors to build and hold rental properties.

Deregulation and Construction Streamlining

• Manufactured homes: Federal requirements for a permanent chassis on factory-built homes are removed. Policy experts estimate this could reduce construction costs by $5,000 to $10,000 per unit and allow for more flexible designs.
• Environmental reviews: Builders may skip environmental reviews for projects located between two buildings that have already undergone the review process.
• Preapproved designs: A grant program will be established for communities to develop "pattern books" of preapproved housing designs to reduce approval times.

Incentives for Local Governments

Federal funding, including Community Development Block Grants, will be allocated to communities that increase housing production, with reduced incentives for those that do not.

Banking and Financing Changes

• The cap on Public Welfare Investments (PWI) for banks will increase from 15% to 20% of risk-adjusted capital, intended to enable greater investment in affordable housing construction.
• Limits on the number of public housing units receiving private financing through Section 8 will be raised.

Timeline and Legislative Process

The bill was negotiated by Senators Tim Scott (R-SC) and Elizabeth Warren (D-MA), and Representatives French Hill (R-AR) and Maxine Waters (D-CA). Both chambers had previously passed their own versions with strong bipartisan support.

Disputes over investor regulations, particularly the sale requirement for build-to-rent homes, delayed reconciliation. A compromise was reached, with House provisions being added and the Senate sale requirement being dropped.

Statements from Lawmakers and Officials

Senator Tim Scott (R-SC) called the bill the "result of years of work to lower costs, expand housing supply, cut red tape, protect taxpayers, and help more Americans achieve the dream of homeownership." He also stated that communities not building more housing should lose incentives.

Senator Elizabeth Warren (D-MA) said the bill "acknowledges that the federal government has a role to play in lowering housing prices" and that "private equity will be blocked from buying up single-family homes and trying to turn housing into one more Wall Street investment."

Representative Maxine Waters (D-CA) stated the bill "reflects meaningful progress and incorporates over 50 housing and banking provisions which Democrats fought to secure," calling it "an important step forward, not the final destination."

Senate Majority Leader John Thune (R-SD) said, "There's a lot of good in there... it's about increasing the supply of housing in this country and making it more affordable."

White House spokesman Davis Ingle stated the administration supported the legislation.

Senator John Kennedy (R-LA) noted that while President Trump was not heavily involved in the bill's development, the president expressed a desire for its passage.

Support and Opposition

The bill has received support from:

• The National Association of Realtors
• The Manufactured Housing Institute
• Groups focused on low-income housing
• Advocacy groups for cities
• State housing finance authorities

Industry groups representing large investors and property managers, including the Institute of Real Estate Management, expressed concern that the original Senate sale requirement could hinder the production of build-to-rent housing. The Cato Institute criticized the bill as a continuation of previous federal housing policies.

Senator Bernie Moreno (R-OH) stated the final House version "basically gutted President Trump's principal priority" regarding homeownership access for young people, arguing that requiring investors to sell build-to-rent homes was key to expanding homeownership.

Limitations and Next Steps

The bill does not provide new federal funding for housing construction. Congress has no direct control over mortgage rates, which are influenced by Federal Reserve interest rate decisions.

President Trump had previously called on House Republicans to support the unamended Senate version. A bill can become law without a presidential signature if no action is taken within 10 days while Congress is in session.

The legislation is considered the most significant federal housing effort since 1990.