Congress has reached a bipartisan agreement on a major housing affordability bill, poised for passage before the end of the month. The legislation includes a controversial provision limiting large investors from purchasing single-family homes, capping their purchases at 350 units. The bill, known as the 21st Century ROAD to Housing Act, aims to increase housing supply by easing federal regulations and encouraging states and cities to reform land-use rules.
Key Developments
The agreement was finalized after months of negotiations between Republicans and Democrats in both the House and Senate. House Speaker Mike Johnson (R-LA) and Senate Majority Leader John Thune (R-SD) played key roles in the deal, which also involved input from House Financial Services Committee Chairman French Hill (R-AR) and ranking member Maxine Waters (D-CA). The bill is expected to be signed into law by President Donald Trump ahead of the midterm elections.
Policy Details
The legislation includes provisions to ban large investors from purchasing single-family homes, a measure demanded by Trump during the State of the Union. This provision has strong support from some populist Democrats but faces opposition from other quarters. The bill does not include a controversial requirement for investors to sell housing units within seven years, as previously proposed.
Reactions and Implications
Senate Banking, Housing, and Urban Affairs Committee Chairman Tim Scott (R-SC) praised the bill, stating it would lower costs, expand housing supply, and help more Americans achieve homeownership. Sen. Elizabeth Warren (D-MA) highlighted the bill's significance in restricting private equity's influence, calling it a historic move to protect neighborhoods from investor-driven housing markets.
The bill's passage would mark the second-biggest economic legislative achievement for Trump’s second term, following last year’s tax cuts. The Senate could vote on the bill as early as this week, with the House expected to take it up next week.