The U.S. Senate voted Thursday to pass the 21st Century ROAD to Housing Act, a housing affordability package aimed at increasing the nation’s housing supply and lowering costs for buyers.
The bill, introduced by Sen. Tim Scott (R-S.C.) and Sen. Elizabeth Warren (D-Mass.), passed with an overwhelming 89–10 vote, marking one of the most significant bipartisan housing efforts in years.
If ultimately approved by the House and signed into law, the legislation would represent the most comprehensive federal housing bill since the aftermath of the 2008 financial crisis.
A Bipartisan Effort to Address Housing Supply & Affordability
The legislation focuses on expanding housing supply while addressing concerns about institutional investors purchasing single-family homes.
The 303-page bill includes a range of programs designed to:
- Encourage new housing construction
- Streamline federal housing programs
- Improve the coordination between government agencies involved in development approvals
Supporters say the legislation reflects a growing recognition on both sides of the aisle that the U.S. housing shortage is one of the primary drivers of affordability challenges.
Shannon McGahn, executive vice president and chief advocacy officer at the National Association of Realtors (NAR), stated:
“REALTORS® applaud the Senate’s bipartisan approach to addressing our nation’s housing supply crisis. By tackling housing barriers at every level of government, the 21st Century ROAD to Housing Act offers the kind of comprehensive approach needed to address the affordability crisis and expand homeownership opportunities for more Americans.”
Investor Restrictions Spark Debate
One of the most closely watched sections of the bill targets institutional investors in the single-family housing market.
The provision, titled “Homes Are for People, Not Corporations,” restricts large institutional investors from purchasing additional single-family homes if they already own at least 350 properties. Investors who develop new housing units would be allowed to own them but would be required to sell those homes within seven years.
Sen. Warren framed the measure as a way to protect access to homeownership for families. In an interview with CNBC, Warren said:
“There’s a point of principle here, and that is that private equity cannot come in and buy up all of the housing supply in America. Homes should be for families, not for giant corporations.”
However, some industry groups and lawmakers argue the provision could have unintended consequences.
Bob Broeksmit, president and CEO of the Mortgage Bankers Association (MBA), said the bill includes “many positive provisions to boost housing supply,” but raised concerns about the investor restrictions. Broeksmit stated:
“The restrictions on institutional investment in single-family housing would further limit financing for build-for-rent housing communities. The goal should be clear: a final package that puts the country on a path to increased affordability, lower operational costs, less red tape, and more housing, not less.”
The National Association of Home Builders (NAHB) expressed similar concerns, warning that the seven-year sale requirement could reduce investment in rental housing development.
In a statement, NAHB Chairman Bill Owens said:
“While the Senate-passed housing package includes several favorable provisions that would streamline environmental reviews, encourage land use and zoning reforms and improve our aging housing stock, we are very concerned about a provision that could significantly curtail housing supply. Specifically, the provision requiring institutional investors to sell built-for-rent single-family homes within seven years would severely reduce investment in rental housing and could slash single-family production by nearly 40,000 units per year.”
Next Steps in the Legislative Process
Despite the strong Senate vote, the bill still faces uncertainty in the Republican-controlled House, which passed its own housing legislation earlier this year.
House leaders have indicated that the Senate version will likely require further negotiation before moving forward.
If the two chambers reach agreement and the bill reaches the president’s desk, it would mark one of the largest federal policy efforts to address housing supply and affordability in decades.
