Congress passed landmark housing affordability legislation Tuesday, advancing one of the most significant federal housing packages in nearly two decades.
The 21st Century ROAD to Housing Act moved forward on a House vote of 358-32. It now heads to President Trump, who is expected to soon sign the measure into law.
The legislation is the culmination of nearly two years of sustained advocacy by the National Association of REALTORS® and its nearly 1.5 million members. During that time, NAR worked closely with lawmakers in both parties, holding thousands of meetings with members of Congress and their staffs, commissioning original research and public opinion polling, launching targeted calls for action and providing technical expertise on housing policy solutions.
NAR members helped deliver the final push toward passage last week when nearly 8,000 REALTORS® traveled to Washington, D.C., for the REALTORS® Legislative Meetings. During hundreds of meetings on Capitol Hill, REALTORS® urged lawmakers to move the legislation across the finish line.
“We are deeply grateful for the leadership and commitment shown by members of the House and Senate, as well as the White House, to do something big on housing affordability,” says Shannon McGahn, NAR executive vice president and chief advocacy officer. “This is the most significant housing legislation to pass Congress in nearly 20 years. At a time when affordability remains one of the nation’s greatest challenges, lawmakers came together in a bipartisan way to advance solutions that will help communities build more homes, expand housing opportunities and strengthen pathways to homeownership.”
"This achievement is a testament to REALTORS® across America who engaged in the process, shared their expertise, and made their voices heard," McGahn says. "Housing is a bipartisan issue. Every community in America is feeling the effects of our housing shortage, and this legislation reflects what can happen when lawmakers work together to address real challenges facing American families."
Why This Matters
The legislation comes at a critical time for the housing market. After more than a decade of underbuilding, NAR estimates the United States faces a housing shortage of approximately 4.7 million homes. The lack of available inventory has driven up prices, limited options for buyers, and made homeownership increasingly difficult for many Americans, especially first-time and first-generation home buyers.
The shortage is particularly acute for middle-income households. According to NAR research, roughly 310,000 homes priced at $261,000 or less are missing from the market, leaving many working families with few affordable options. As demand continues to outpace supply, prospective buyers are often forced to compete for a limited number of homes or delay purchasing altogether.
NAR's Road to ROAD
“The path to final passage of the 21st Century ROAD to Housing Act was long, but it demonstrates how major legislation is built and how sustained advocacy can produce meaningful results,” McGahn says. “Our work on this bill spanned two NAR presidents—Kevin Sears and Kevin Brown—both of whom testified before Congress in support of the measure.”
The final package combines nearly 50 individual housing proposals addressing housing supply, affordability, financing, zoning, workforce development, fair housing, property rehabilitation and other housing challenges. NAR engaged in every component of the legislation, providing research, policy recommendations, technical expertise and real-world perspectives from housing markets across the country.
From committee hearings and stakeholder meetings to floor votes and final negotiations, members of NAR helped ensure lawmakers had the information and local insights needed to advance meaningful housing solutions.
The result is a bipartisan housing package designed to increase housing opportunities, support housing production and help more Americans achieve the dream of homeownership.
For nearly two years, NAR members across the country made this legislation a national priority. Through meetings with lawmakers, grassroots advocacy, research, polling, testimony and direct engagement on Capitol Hill, NAR members helped build the momentum that ultimately carried the legislation to passage.
“You can’t build an advocacy operation like this overnight,” McGahn says. “It took years of building relationships with policymakers, backing our case with NAR research and sustained engagement from REALTORS® across the country.”
Advocacy Wins in the Final Bill
Measures to increase housing supply:
- Sec. 107—Housing Supply Frameworks. Directs the Department of Housing and Urban Development to develop zoning and land-use best practices to help communities remove barriers to housing development.
- Sec. 201—Increasing Housing in Opportunity Zones. Prioritizes HUD grants that support housing construction and preservation in Opportunity Zones.
- Sec. 202—Whole-Home Repairs Act. Supports grants and forgivable loans to preserve and stabilize aging housing stock.
- Sec. 204—Affordable Housing Construction Eligibility. Allows Community Development Block Grant funds to be used for new housing construction.
- Sec. 205—BUILD Housing Act. Streamlines environmental reviews to reduce delays and encourage housing development.
- Sec. 206 —Unlocking Housing Supply Through Streamlined Reviews. Simplifies federal reviews for small and infill housing projects.
- Sec. 207—Grants for Housing Planning and Implementation. Helps state, local and tribal governments plan for and support housing growth.
- Sec. 208—Innovation Fund. Provides flexible funding to communities expanding housing supply and supporting infrastructure.
- Sec. 209—Accelerating Home Building Act. Encourages preapproved housing designs and faster local permitting.
- Sec. 210—RESIDE Act. Supports converting vacant and abandoned buildings into housing.
- Sec. 211—Housing Affordability Act. Increases Federal Housing Administration multifamily loan limits to better support affordable housing development.
- Sec. 301—Housing Supply Expansion Act. Modernizes manufactured housing rules to encourage innovation and expand affordable housing options.
- Sec. 302—Modular Housing Production Act. Reduces financing barriers to modular housing construction.
- Sec. 303—Property Improvement and Manufactured Housing Loan Modernization Act. Expands financing options for manufactured and factory-built housing.
- Sec. 501—HOME Investment Partnerships Reform Act. Modernizes and reauthorizes a key affordable housing production program.
- Sec. 502—Rural Housing Service Reform Act. Preserves affordable housing opportunities in rural communities.
Measures to expand access to homeownership:
- Sec. 105—FHA Small-Dollar Mortgages. Creates a pilot program to expand access to mortgages of $100,000 or less.
- Sec. 401—Creating Incentives for Small-Dollar Loan Originators. Examines barriers to originating small-dollar mortgages.
- Sec. 402—Small-Dollar Mortgage Points and Fees. Reviews regulations that may limit the availability of small-dollar loans.
- Sec. 404—Helping More Families Save Act. Encourages savings and economic mobility to support future homeownership.
- Sec. 405—Choice in Affordable Housing Act. Reduces inspection delays and expands housing options for voucher holders.
- Sec. 601—Military Service Question. Helps ensure veterans are informed about available VA home loan benefits.
- Sec. 602—Housing Unhoused Disabled Veterans Act. Expands access to housing assistance for disabled veterans.
Measures to expand access to capital:
- Sec. 203—Community Investment and Prosperity Act. Increases banks' capacity to invest in affordable housing.
- Sec. 907—American Access to Banking. Streamlines bank formation and reviews restrictions that may limit capital access.
- Sec. 908—Promoting New Bank Formation. Encourages the creation of new financial institutions through a phased regulatory framework.
- Other provisions to expand access to capital. The legislation includes additional measures intended to strengthen lending capacity and support housing finance.
To support veterans:
- Sec. 603—Veterans Affairs Loan Informed Disclosure (VALID) Act. Improves transparency for veteran home buyers by ensuring they can better compare VA and FHA financing options. NAR supports the VALID Act.
