The Senate passed its first major housing bill since the subprime mortgage crisis. Can it actually become law?

by Rachel Morgan News Editor

A comprehensive bipartisan bill aimed at addressing the nation’s housing affordability crisis passed the Senate on Thursday by a vote of 89-10. The 21st Century Road to Housing Act, sponsored by Republican Senator Tim Scott and Democratic Senator Elizabeth Warren, combines elements from previous housing legislation considered by both chambers of Congress.

The bill includes provisions designed to lower housing costs and increase supply. These include changes to manufactured home requirements, simplified environmental reviews for smaller building projects, and tying state and local funding to housing production goals. Congress and the White House have identified housing affordability as a growing economic and political concern nationwide.

Did You Know? Since 2019, home prices have risen more than 50% on average, while wages have only grown by 22% during the same period.

Senator Tim Scott stated before the vote, “We can do what so many folks failed to do in this legislative body for the last few decades — not few years, but few decades — and that is pass consequential legislation that makes it easier to become a homeowner for those who are ready for that part of their journey.” The bill has garnered support from organizations focused on low-income housing, city and state housing finance authorities, the National Association of Realtors, and the Manufactured Housing Institute.

Dennis Shea, executive vice president and chair of the J. Ronald Terwilliger Center for Housing Policy at the Bipartisan Policy Center, said, “It’s very decent that Congress is taking meaningful action.” He too noted the importance of state and local officials working to improve affordability in their communities, stating, “We really need to have multiple levers of policy. It’s a tough problem to solve.”

Expert Insight: This bill represents a rare instance of bipartisan agreement on a significant economic issue. However, the inclusion of provisions restricting large investors could have unintended consequences, potentially impacting the overall housing supply and the availability of rental options.

A potentially divisive aspect of the bill prohibits many large investors from purchasing single-family homes and requires others to sell off rental properties to individuals within seven years. Concerns have been raised that these rules could discourage investment in the build-to-rent market and potentially worsen housing shortages.

The bill now moves to the House, where it may face opposition from conservative Republicans. The White House has indicated support for the bill, and President Trump’s advisors would recommend he sign it. However, recent reports suggest the president’s focus has shifted to voting legislation, and he has even pledged not to sign other bills until voting legislation is passed.

Frequently Asked Questions

What is the 21st Century Road to Housing Act?

The 21st Century Road to Housing Act is a bipartisan bill designed to improve housing affordability and increase the supply of housing. It combines elements from previous housing bills considered by both the House and Senate.

Who sponsored the bill?

The bill was sponsored by Republican Senator Tim Scott and Democratic Senator Elizabeth Warren.

What are some of the key provisions of the bill?

Key provisions include initiatives to lower the costs of manufactured homes, simplify environmental reviews for little building projects, and tie state and local funding to housing production goals. It also includes a provision restricting large investors from buying single-family homes.

As this legislation moves forward, will it successfully address the complex challenges of housing affordability across the country?

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