U.S. senators are preparing to vote this week on a major bipartisan housing package designed to increase the nation’s housing supply and improve affordability for American families.
The legislation, known as the 21st Century ROAD to Housing Act, combines key elements from housing proposals developed separately in the House and Senate. Lawmakers also incorporated several provisions supported by the White House before bringing the bill to the floor.
The proposal comes as housing affordability remains a major concern nationwide. Recent federal data shows the median home price in the United States has climbed above $405,000, while the median household income sits below $84,000.
Supporters of the bill say the legislation targets the root causes of the housing shortage by expanding supply and reducing regulatory barriers.
Senate Banking Committee Chairman Tim Scott (R-S.C.) said the proposal focuses heavily on empowering local communities while limiting federal red tape that can slow housing development.
According to Scott, the legislation prioritizes three major goals: reducing unnecessary federal regulations, giving local jurisdictions more flexibility, and expanding the overall housing supply while addressing affordability challenges.
One of the bill’s central focuses is expanding access to manufactured housing, which lawmakers view as a more affordable pathway to homeownership.
The legislation would revise the federal definition of manufactured housing to include units that are not built on permanent chassis. It would also create a specialized grant program for communities with manufactured housing developments.
In addition, the bill would update Federal Housing Administration mortgage standards for manufactured homes in an effort to expand financing options for buyers.
Beyond manufactured housing, the legislation includes several measures aimed at boosting housing construction and redevelopment.
One provision would streamline environmental reviews for new housing projects, a process that developers often say delays construction and increases costs. Another would increase the limit on banks’ private investments in affordable housing projects from 15 percent to 20 percent.
The bill also proposes a pilot program aimed at converting vacant and abandoned buildings into residential housing, potentially adding new housing units in areas where unused properties already exist.
Two provisions added to the legislation have drawn the most attention.
The first would block the Federal Reserve from issuing a central bank digital currency until at least 2030. The measure addresses concerns among some lawmakers about financial privacy and government oversight of digital payments.
The second provision would temporarily restrict large institutional investors from purchasing single-family homes. Under the proposal, large investors would be barred from buying those homes for the next 15 years.
Supporters argue the restriction could help prevent large investment firms from dominating the housing market and make more homes available to individual buyers.
However, the restriction would not apply to manufactured homes, multifamily housing, or homes specifically built as rental properties.
The bill also includes a requirement that institutional investors sell rental homes they build to individual buyers within seven years of construction. Lawmakers believe that provision could gradually increase the number of homes available for purchase and help reduce housing prices.
The Senate could hold a vote on the measure as early as Thursday. If approved, the bill would move to the House of Representatives before heading to the president’s desk for final approval.
Supporters from both parties say the legislation represents one of the most comprehensive federal efforts in years to address the nation’s housing shortage.
