The House of Representatives has given its final approval to a comprehensive bipartisan bill designed to lower housing costs, marking a significant legislative effort to address affordability concerns ahead of the midterm elections.
The bill, which passed the House with a 358-32 vote, is expected to be signed into law by President Donald Trump on Wednesday. The Senate had previously passed the legislation with an 85-5 vote.
This legislation represents one of the most substantial attempts in recent decades to increase the supply of housing and reduce prices, a move prompted by widespread voter frustration over the rising cost of living. The bill seeks to achieve its goals by reducing federal regulations, streamlining environmental reviews, accelerating construction timelines, and limiting the ability of corporate landlords to purchase single-family homes.
Democratic Rep. Maxine Waters of California, a key negotiator of the bill, highlighted the increasing age of first-time homebuyers, now around 40, and a reported 47% surge in rents since the COVID-19 pandemic began.
"Our country must do better and today we will," Waters stated.
The final package is a consolidation of dozens of smaller bills, forged through months of negotiation and representing a rare instance of bipartisanship in a congressional session marked by significant disagreements.
House Financial Services Chairman French Hill, a Republican from Arkansas who collaborated on the bill with Waters and Senate members, noted that this is the first time in years that Congress has united to enact "measurable, accountable changes" to national housing laws.
"The bill will help build more homes to meet that growing demand and keep the American dream within reach," Hill said.
Expanding Financing and Protecting Renters
The legislation also includes provisions to expand financing options and enhance protections for renters. It encourages the development of alternative housing models, such as modular homes, and mandates new renter protections. Programs aimed at combating homelessness will also receive enhanced support.
Local governments that increase housing construction will be eligible for funding, including Community Development Block Grant money allocated to areas that exceed the median rate of homebuilding. The bill also provides resources for communities to repurpose abandoned infrastructure into housing and establishes a framework for localities looking to reform restrictive zoning regulations that often impede larger housing developments.
Furthermore, the bill will increase the limits on financing available for the renovation of public housing units and formalizes a recovery program designed to expedite financial assistance to communities recovering from disasters.
Notably, a Senate provision that would have required investors to sell newly constructed homes within seven years was not included in the final House-passed bill.
Addressing Housing Costs Across Parties
Both Republicans and Democrats have supported the bill as a means to demonstrate action on the nation's affordability crisis, which has been exacerbated by a shortage of available housing driving up prices. The U.S. housing market has experienced a downturn since 2022, coinciding with an increase in mortgage rates from their historically low pandemic-era levels.
Sales of existing homes have remained below historical averages, with sales in 2023 reaching a 30-year low and continuing to be sluggish into 2024. Data indicates a shortage of 10 million homes nationally. Reports also show existing home sales at three-decade lows and rising inventories due to high purchasing costs.
"Cost burdens for both renters and owners continue to climb, while assistance remains profoundly underfunded," stated a recent report from the Joint Center for Housing Studies at Harvard University.
Despite a recent decline in the median U.S. monthly rent over the past three years, it remains 17.2% higher than pre-pandemic levels, according to data from Realtor.com.
The bill garnered broad support from various stakeholders in the housing sector, including organizations representing landlords and property owners, as well as groups advocating for tenants and low-income renters. The bipartisan nature of the legislation was frequently cited by lawmakers.
"In this polarized and angry Congress, we are actually getting something done," said Rep. Jim Himes, D-Conn.