A comprehensive legislative package designed to alleviate housing costs and encourage new home construction has been stalled in its path to becoming law due to President Donald Trump’s refusal to sign it. The 21st Century ROAD to Housing Act, which had garnered bipartisan support in Congress, was slated for a White House signing ceremony on Wednesday, but Trump rescinded his approval, stating he would not sign the bill unless Congress enacts legislation mandating proof of citizenship for all voters.
The bill represents the culmination of months of negotiations among lawmakers seeking to address the growing unaffordability of housing for both renters and aspiring homeowners across the United States. It includes measures aimed at reducing federal regulations, expediting environmental reviews, streamlining the construction process, and curbing the influence of corporate landlords by limiting their ability to purchase single-family homes.
While not a comprehensive solution to all factors contributing to housing affordability issues—such as labor shortages in construction, rising insurance costs, and stagnant wage growth relative to increasing rents and home prices—the bill has garnered support from a wide range of stakeholders. This includes the real estate industry, encompassing homebuilder and apartment complex owner organizations, as well as housing advocates.
Daryl Fairweather, chief economist at Redfin, noted the potential impact on homebuyers. "Homebuyers who were hoping for relief may have to wait even longer, and in a market already starved for inventory, that’s a tough pill to swallow," she said. "We need more homes built, and legislation that removes construction barriers is exactly what the market needs right now."
The U.S. housing market has experienced a downturn since 2022, marked by rising mortgage rates. Sales of existing homes have remained near a 30-year low, with recent acceleration still falling short of historic norms. Years of significant home price increases, fueled by low mortgage rates, have priced many prospective buyers out of the market. A persistent shortage of homes for sale, partly due to underinvestment in new home construction, has also contributed to elevated home prices.
Since 2020, nationwide home prices have risen by 54%. Last year, the median sales price for an existing single-family home was nearly five times the median household income, according to research from Harvard's Joint Center for Housing Studies. Renters have also faced affordability challenges, with the median U.S. monthly rent remaining 17.2% higher in May than pre-pandemic levels, despite a nearly three-year decline.
Addressing Supply and Affordability
The housing bill specifically targets the imbalance between housing supply and demand. It aims to increase the supply of housing, particularly more affordable starter homes, by amending regulations to support the construction of manufactured homes and expanding access to government-backed loans for building standalone rental units.
The legislation also allocates funding for communities to redevelop abandoned infrastructure into housing and provides frameworks for local governments to reform outdated zoning regulations that often restrict larger housing developments. Fairweather anticipates that over the coming years, the bill's provisions will lead to increased construction of townhomes, multifamily housing, and accessory dwelling units (ADUs), which she believes will ease pressure on home prices and improve market accessibility for homebuyers.
Further provisions include expanding government rental assistance and affordable housing construction programs. The bill also encourages state and local governments to facilitate new home and apartment construction through federal funding incentives for communities exceeding median homebuilding rates. It also includes measures to raise financing limits for public housing renovations and establish a recovery program for disaster-affected communities, alongside new renter protections.
San Diego Mayor Todd Gloria, president of the U.S. Conference of Mayors, emphasized the urgency of the housing crisis, stating, "Families are struggling under the heavy weight of housing costs that have climbed for decades. There’s no time to waste. Without federal action, America’s housing shortfall will continue to grow, falling another 2 million units behind in the next five years.”
Despite the bill's broad support and potential benefits, the federal government's direct influence on local construction and rental markets is limited, as most regulations are determined at the state and local levels. Experts suggest that even if enacted, the bill's impact on local housing prices would not be immediate, but it would accelerate new construction projects.
Danielle Hale, chief economist at Realtor.com, commented on the timeline for consumer impact: "The sooner this bill becomes law, the sooner builders and homebuyers will benefit from its downstream effects. Even if the president were to sign this bill immediately, many of the provisions will take time to impact builder planning and projects in the pipeline, so there is going to be a delay before consumers feel the impacts of this legislation either way."
Trump's decision to withhold his signature could result in a temporary delay. The House passed the bill with a vote of 358-32, and the Senate approved it 85-5, indicating a veto-proof majority. However, if Trump were to formally veto the measure, both chambers of Congress would need to reconvene to override the veto. House Speaker Mike Johnson expressed confidence that Trump would ultimately sign the bill after reviewing its details.