Senate Passes Landmark Bipartisan Housing Bill to Address Affordability Crisis

The Senate passed a sweeping bipartisan housing bill on Monday with an 85-5 vote, sending the 21st Century ROAD to Housing Act to the House for final approval. The legislation, considered the most significant housing reform in decades, aims to increase housing supply and lower costs by restricting institutional investors from purchasing single-family homes and streamlining environmental reviews to accelerate construction. The bill now heads to the House, which is expected to give final approval later this week before being sent to President Donald Trump, who has signaled his support.

The final version of the bill bans corporate investors from buying single-family homes but does not include a Senate provision that would have required investors to sell newly constructed homes within seven years. The legislation includes over 45 housing provisions, including measures to update chassis requirements for manufactured housing, create an innovation fund for communities increasing housing supply, and support housing opportunities for veterans. It also offers Community Development Block Grant money to localities that exceed the median rate of homebuilding and provides new dollars for converting abandoned infrastructure into housing.

Senate Banking Committee Chairman Tim Scott, R-S.C., 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." Sen. Elizabeth Warren, D-Mass., the top Democrat on the banking panel, said the legislation "acknowledges that the federal government has a role to play in lowering housing prices" and noted that "for the first time ever, private equity will be blocked from buying up single-family homes and trying to turn housing into one more Wall Street investment." Rep. Maxine Waters, D-Calif., who helped negotiate the legislation, described it as a "huge step toward finally addressing the affordable housing and homelessness crises in this country."

The bipartisan achievement comes as housing costs remain a top concern for voters heading into the midterm elections. The Economic Report of the President in April found a shortage of 10 million homes, while a report from the Joint Center for Housing Studies at Harvard University noted that sales of existing homes were at three-decade lows. The bill represents a rare legislative victory for Republicans, who have seen their midterm prospects deteriorate amid low approval ratings on pocketbook issues. An AP-NORC poll found that just 33% of U.S. adults approve of Trump's handling of the economy.

The legislation now moves to the House, which returns from recess this week and is expected to act quickly. House Financial Services Committee Chairman French Hill, R-Ark., said the bill is "a meaningful step toward increasing housing supply, improving affordability, and helping more Americans achieve homeownership," and expressed optimism that President Trump will sign it into law.