The United States Senate on Monday passed the 21st Century ROAD to Housing Act in an 85-5 vote, advancing a bipartisan housing package aimed at lowering costs by boosting supply and limiting institutional home buying.
The bill now heads to the House and would move to President Donald Trump for signature if approved.
The legislation, led by Sen. Tim Scott (R-S.C.) and Sen. Elizabeth Warren (D-Mass.), includes more than 45 provisions designed to expand housing supply, reduce construction barriers and improve affordability. Warren has described the measure as the biggest housing bill in more than 30 years.
A major provision would bar companies that already own more than 350 single-family homes from purchasing additional existing homes.
“Housing prices are too darn high and housing supply too low,” Scott said on the Senate floor.
Warren called the vote proof that bipartisan lawmakers can still deliver meaningful policy, saying the bill would help address America’s housing crisis.
In a post on X, Warren said Congress had “sat on its hands for decades” while homeownership became increasingly out of reach for American families, adding that lawmakers were now taking “a huge step” toward fixing the problem.
Will It Lower Home Prices?
Experts remain divided on how much impact the legislation could have.
The bill seeks to accelerate homebuilding through zoning reforms, streamlined environmental reviews and pre-approved housing designs. It also includes a new Innovation Fund, which would provide $200 million annually for five years to communities with a track record of increasing housing supply, according to CBS News.
Housing affordability has worsened sharply over the past decade. The median U.S. home price is now around $403,000, up 77% from roughly $227,000 in 2011, according to Federal Reserve Bank of St. Louis data cited by CBS.
Still, Daryl Fairweather, chief economist at Redfin, said limiting private equity may not dramatically change supply because investors could restructure holdings through smaller entities.
“A lot of people think that if we get rid of private equity, there will be all these houses available for sale for first-time homebuyers,” Fairweather said. “But that’s not going to happen.”
Supply Crunch Remains Key Challenge
The broader affordability debate increasingly centers on whether Wall Street investors or limited housing supply is the bigger problem.
That supply shortage remains severe. U.S. housing starts fell 15.4% in May to 1.18 million units, the lowest level since 2020, while higher mortgage rates and elevated construction costs continue to pressure builders.
Starter homes now cost at least $1 million in 242 U.S. cities, highlighting how affordability pressures continue to intensify across the housing market.
Disclaimer: This content was produced with the help of AI tools and was reviewed and published by Benzinga editors.
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