A comprehensive legislative package aimed at reducing housing costs and encouraging home construction recently received bipartisan backing from Congress. However, President Donald Trump has placed a major obstacle in its path to becoming law. While the White House initially backed the 21st Century ROAD to Housing Act, Trump halted the signing ceremony on Wednesday, refusing to sign until Congress enacts legislation requiring voters to prove citizenship.
Importance of the Housing Legislation
This legislation represents months of effort by lawmakers to compile multiple bills addressing the growing unavailability of affordable housing in the U.S. It proposes to ease federal regulations, quicken environmental assessments, and hasten the construction process. It further seeks to limit the purchase of single-family homes by corporate landlords. Despite its strengths, the bill doesn’t tackle all the drivers of low housing affordability. It leaves untouched issues like limited construction labor, increased insurance costs, and wage growth that hasn’t kept pace with soaring rents and housing prices.
According to Daryl Fairweather, chief economist at Redfin, the housing market, suffering from inventory shortages, needs legislation to remove building barriers: “Homebuyers who were hoping for relief may have to wait even longer, and in a market already starved for inventory, that’s a tough pill to swallow.”
Reasons Behind Passing This Major Housing Legislation
Voter attention to housing issues has intensified in recent years, with both homeownership and renting becoming increasingly unaffordable for many Americans. The U.S. housing market has struggled since 2022, triggered by rising mortgage rates. Sales of pre-owned homes remain around historical lows. An acceleration in May brought sales to their fastest pace since December, yet remaining below the historic norm of 5.2 million due to high mortgage rates.
Home prices have surged 54% across the nation since 2020, with the median single-family sales price nearly quintuple the median household income, according to Harvard’s Joint Center for Housing Studies. Renters struggle too, with monthly rent only recently declining over three years but still 17.2% higher than pre-pandemic levels, as Realtor.com reports.
Consequences if the Bill Doesn’t Become Law
A large imbalance of supply and demand has limited homeownership for many. Reduced housing availability props up prices even amid slumps, while low mortgage rates cause bidding wars. The bill proposes increased housing supply, particularly smaller, affordable starter homes. It plans to amend existing regulations to boost manufactured home construction, expand government-backed loans, and turn defunct infrastructure into housing.
Communities wishing to revise outdated zoning laws and enable larger developments would receive guidance. As per Fairweather, this increase in townhomes, multifamily housing, and accessory dwelling units will eventually ease home price pressures, aiding aspiring homebuyers.
Impact on Renters
The bill includes expanded rental assistance and affordable housing development programs. It encourages states and local areas to facilitate new homes and apartments through federal funding to places surpassing median homebuilding rates. Public housing units could gain renovation financing, while a recovery program aids rapid fund distribution in disaster-hit areas. Renter protections are reinforced.
San Diego Mayor Todd Gloria, U.S. Conference of Mayors president, stresses the urgency: “Families are struggling under the heavy weight of housing costs that have climbed for decades. There’s no time to waste. Without federal action, America’s housing shortfall will continue to grow, falling another 2 million units behind in the next five years.”
Potential Delays in the Bill’s Signing
While seen as significant, the federal government’s sway over construction volumes or rent regulation remains limited, with state and local jurisdictions governing these areas. Thus, even delays won’t instantly change local house prices, but could stall construction projects.
Danielle Hale, chief economist at Realtor.com, notes that bill timing is crucial for consumer benefit: “The sooner this bill becomes law, the sooner builders and homebuyers will benefit from its downstream effects.” The transition from planning to tangible consumer impact takes time, regardless of when the bill is signed.
Next Steps
Trump’s refusal to sign the bill immediately may only delay its effect temporarily. The House’s 358-32 vote and the Senate’s 85-5 vote show a veto-proof majority. Speaker Mike Johnson expressed optimism after speaking with Trump, hopeful for a signature. Johnson remarked, “The president, when we go through the details of the bill, he’s going to understand that it’s a good product.”