Bipartisan Reforms Target Housing Affordability Crisis with Supply Boosts and Investor Curbs

The Senate passed a rare bipartisan housing bill Thursday seeking to bring down prices while boosting housing supply.

Sen. Tim Scott (R-SC) and Sen. Elizabeth Warren (D-MA) joined together to author the 303-page legislation known as the 21st Century ROAD to Housing Act. The bill passed by an 89-10 vote. 

“The 21st Century ROAD to Housing Act is about helping people like my mom have a place to call home,” Scott wrote on X following the vote. “That’s what happens when red, white, and blue come together to get things done.”

The 21st Century ROAD to Housing Act seeks to cut regulatory barriers and modernize programs like the HOME Investment Partnerships to make affordable homes easier to build and buy.

Notably, one of the reforms would restrict large institutional investors from snapping up single-family homes, aiming instead to give regular families a shot at homeownership, with potential heavy penalties for investors who do not comply.

Additional key changes would include streamlining environmental reviews for smaller projects, expanding options for manufactured housing. Additional community grants will also be available to speed up construction development.

Prior to the Senate's approval, the House passed its own housing legislation. Instead of approving separate bills, Scott and Warren merged the two pieces of legislation.

With Scott as the chairman of the Banking, Housing and Urban Affairs Committee and Warren as the ranking member, the two created the legislation to tackle major affordability issues ahead of the midterm elections.

A recent New York Times/Siena poll found that a majority of the 1,625 registered voters nationwide don't feel confident in their ability to pay for housing, retirement and health care.

Notably, 54% of voters said they felt housing was unaffordable, with 31% saying housing is somewhat affordable and only 13% saying housing is mostly affordable.

Before the bill heads to President Donald Trump’s desk for approval, the House of Representative will have a chance to review the changes made by the Senate.