Congress has reached a rare bipartisan agreement on a potential solution for housing affordability, but the legislation’s fate remains uncertain due to political maneuvering. The 21st Century ROAD to Housing Act, which aims to address the country’s housing shortage, has been sidelined after President Donald Trump canceled a signing ceremony and tied the bill’s passage to separate election legislation.
The housing shortage is a pressing issue, with home prices up roughly 54 percent nationally since 2020 and existing-home sales near 30-year lows. They seek to address this problem by streamlining environmental reviews, tying federal funding to local housing production, and providing communities with new tools and incentives to build more homes.
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The legislation would also expand the definition of manufactured housing, potentially helping developers sidestep restrictive local zoning, and boost support for accessory dwelling units and other lower-cost housing options. It would provide new resources for rehabilitating aging properties and converting underutilized infrastructure into housing, which could help increase the supply of affordable housing.
For builders, developers, and investors, certainty may be the biggest immediate benefit. The revised legislation limits large institutional investors’ ability to buy single-family homes, but avoids potentially derailing an entire corner of the housing market by stripping out a forced-sale provision, a move that had previously frozen capital across the sector, with one survey estimating that $3.4 billion in investment and roughly 10,000 housing units were put on hold.
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The bill’s support from homebuilders, realtors, and housing advocates alike reflects a growing consensus that increasing supply is essential to addressing affordability, and they are waiting for the bill’s passage to move forward with new projects. The company’s plans are on hold until the bill is signed into law.
Despite the bill’s potential, its delay will stretch the timeline for new projects, which still need financing, approvals, and time to break ground. Each day the bill sits on the president’s desk will further delay the implementation of these measures, affecting the entire real estate industry, including selling strategy and investment plans.