The United States Congress has achieved a rare bipartisan victory with the passage of a sweeping housing affordability bill. This legislation, now awaiting President Donald Trump’s signature, aims to lower housing costs and restrict Wall Street investors from buying up single-family homes. The bill’s passage comes as voter frustration over the cost of living continues to rise, making it a desperately needed win for Republicans ahead of the 2026 midterm elections.
The 21st Century ROAD to Housing Act is a comprehensive piece of legislation that addresses several aspects of the housing crisis. It includes provisions to streamline the construction process, reduce federal regulations, and limit the ability of large institutional investors to purchase single-family homes. The bill was negotiated by a diverse group of lawmakers, including Sens. Tim Scott, R-S.C., and Elizabeth Warren, D-Mass., and Reps. French Hill, R-Ark., and Maxine Waters, D-Calif.
The Path to Passage
The bill’s journey to passage was not without its challenges. It was stranded for months on Capitol Hill after the Senate passed a version in March and the House approved a different version in May. The final package came together after the Senate agreed to add a series of provisions sought by the House while dropping a provision the House objected to, which would have required large investors that construct or own at least 350 single-family homes to sell them after seven years.
The Senate voted overwhelmingly on Monday to pass the bill, with a vote of 85-5. Several senators missed the vote due to severe thunderstorms in the Washington area that led to a ground stop at Ronald Reagan National Airport. The House gave final approval on Tuesday, with a vote of 358-32. The bill is now expected to be signed into law by President Trump on Wednesday at the Capitol.
The Impact of the Bill
The legislation is expected to have a significant impact on the housing market. It includes a series of funding and grant programs for constructing new homes, slashes red tape, and empowers local governments to expedite reviews to build more housing. A key section titled Homes Are For People, Not Corporations would restrict any large institutional investor from buying single-family homes.
Republicans have focused on the provisions to reduce mandatory regulations, with Hill calling the bill a meaningful step toward increasing housing supply, improving affordability, and helping more Americans achieve homeownership. Democrats like Warren have celebrated the restraints on institutional investors, saying the bill is about stopping private equity from buying up homes and raising costs for consumers.
The Role of President Trump
President Trump had championed provisions to ban large Wall Street investment firms from buying up in the thousands single-family homes as he put it in this year’s State of the Union speech. However, to the frustration of some Republicans, the achievement has been overshadowed by Trump’s actions on other issues. His on-again, off-again Iran deal and recent moves that led to the expiration of the FISA Section 702 warrantless surveillance program have dominated headlines.
White House spokesman Davis Ingle said the Trump administration is proud to have worked alongside our partners in Congress to move this legislation forward that advances the President’s housing affordability agenda. However, some Republican lawmakers have noted that Trump had not been personally engaged in developing the bill, which caused the process to drag on for months before the negotiators resolved the disputes.
The Housing Crisis
The legislation comes as the U.S. housing market continues to struggle. Sales of previously occupied U.S. homes have been hovering close to a 4-million annual pace going back to 2026 – well short of the 5.2-million annual pace that’s historically been the norm. Sales slowed last year to a 30-year low and have remained sluggish so far this year, declining in January and February versus a year earlier.
The Economic Report of the President in April found a shortage of 10 million homes, while a report this month from the Joint Center For Housing Studies at Harvard University found sales of existing homes were at three-decade lows and inventories were rising due to high home buying costs. Cost burdens for both renters and owners continue to climb, while assistance remains profoundly underfunded the report said.
While the median U.S. monthly rent has been declining for nearly three years, it was still 17.2% higher in May than it was before the pandemic, according to data from. The legislation drew widespread support in the housing community, both from organizations representing landlords and large property owners as well as groups that advocate for tenants and low-income renters.
