New Housing Act Passes in Senate
The US Senate approved the 21st Century Road to Housing Act on Thursday with a strong bipartisan vote of 89-10. This legislation is being described as one of the most significant housing reform measures in a long time, focusing on the pressing issues of national housing shortages and increasing costs.
The act, a collaborative effort by Senator Tim Scott (R-S.C.) and Senator Elizabeth Warren (D-Mass.), aims to tackle the affordability crisis as the midterm elections approach. It outlines various grants and pilot programs intended to stimulate new construction across the country.
A key aspect of the law is its effort to modify the federal definition of housing units, which, in theory, encourages a wider range of housing options. The legislation also seeks to prevent large investors from buying up single-family homes. It targets “bureaucratic bottlenecks” at the Department of Housing and Urban Development (HUD) and simplifies the inspection processes by establishing alternative routes for projects to comply with federal standards.
This legislation is a combination of the House-passed 21st Century Act and the Restoring the American Dream to Housing Opportunity Act. These bills were initially included as amendments to the National Defense Authorization Act for Fiscal Year 2026 when they passed the Senate.
The final version integrates several new sections to unify the two proposals into a single, comprehensive package. Scott argues that this bill reflects the Trump administration’s affordability policies by reducing regulatory hurdles and enhancing the housing supply without increasing federal expenditure.
“It’s significant that President Trump, Elizabeth Warren, and Senate Republicans are aligning on housing legislation to focus on a major issue affecting Americans,” Scott commented.
Warren added, “For the first time, this means we can start moving home prices in a better direction. Homes should belong to the families living in them, not Wall Street investors.”
A few Senators opposed the bill, including Ted Budd (R-Texas), Ron Johnson (R-Wis.), and Mike Lee (R-Utah), among others. Notably, Senator Marsha Blackburn (R-Tenn.) missed the vote due to distractions from the Tennessee gubernatorial race. Meanwhile, Senator Raphael Warnock (D-Ga.) referred to this legislation as “once-in-a-generation housing legislation.”
“When you hear Tim Scott and Elizabeth Warren walk into a bar, it sounds like the start of a joke,” Warnock quipped. “Yet, we got it through the committee with significant support in the Senate, and we’re on track to finalize it.”
Recently, President Trump called for restrictions on large investment firms buying single-family homes to help stabilize supply and prices for potential homeowners. An executive order he signed back in January sought to “prevent competition between Wall Street and Main Street homebuyers.” This directive instructed federal agencies to limit funding or support for corporate acquisitions.
The order also tasked the Department of Justice and the Federal Trade Commission with reviewing large housing acquisitions as potentially monopolistic practices. The goal is to curb companies from dominating local markets, inflating prices, and constraining inventory for first-time buyers.
