Senate Passes Bipartisan Bill to Lower Housing Costs

On Monday, the Senate approved a bipartisan bill intended to reduce housing expenses. This legislation, referred to as the “Road to 21st Century Housing Act,” aims to address the housing affordability crisis by removing bureaucratic obstacles, boosting housing supply, increasing financing options for home building, and limiting the impact of single-family home purchases by Wall Street. While both the House and Senate initially proposed their own versions, they came to an agreement on Tuesday.

Current housing prices are beyond reach for many young families. Notably, the average age of first-time homebuyers hit a record high of 40 as of November 2025. Data from the National Association of Realtors indicates that the share of first-time buyers has fallen to just 21%.

The Senate approved the House’s revised version, but the House still needs to accept any amendments from the Senate before it can be presented to the President. Earlier, the Senate passed an earlier version of the bill with a vote of 89-10 on March 12, and the House revised and approved it with a vote of 396-13 on May 20.

This bill gained support from both the Senate Banking, Housing, and Urban Affairs Committee and the House Financial Services Committee, with members from both parties praising their collaboration. Republican Senator John Kennedy from Louisiana light-heartedly remarked the bill is “better than sex.”

Tim Scott, the Chairman of the Banking, Housing, and Urban Affairs Committee, expressed optimism, stating, “2026 is the year of affordable housing. This bill presents Congress a chance to achieve substantial progress for families in America.” He reflected on his personal connection to homeownership, noting, “I’ve seen what it takes to secure a safe and affordable home.”

Rep. French Hill, Chair of the House Financial Services Committee, considered the bill a “meaningful step” towards making housing more affordable.

Hill acknowledged the challenges of crafting bipartisan legislation. He noted that the Senate incorporated important elements from the House, such as a three-year expiration for a key program and provisions aimed at restricting institutional investors from outbidding American families in the housing market. “This bill is an essential stride towards increasing housing supply and improving affordability,” he stated, expressing hope for the President’s endorsement.

Following a series of developments, President Trump enacted an order on January 20 to prevent large institutional investors from acquiring single-family homes that are affordable to families. He urged Congress to make this ban permanent, emphasizing the importance of families having access to reasonable housing.

The new legislation aims to simplify environmental reviews, modernize zoning, and lower regulatory barriers to expedite housing development. It also seeks to increase lending limits for multifamily programs and raises the caps on banks’ investments in affordable housing. Furthermore, it proposes that up to 20% of Community Development Block Grant funds be allocated for new affordable housing projects.

Senator Elizabeth Warren remarked that this being “the largest housing bill in over three decades” demonstrates significant progress. Still, fellow lawmakers like Maxine Waters acknowledged that there is much more work to do. “This is a step forward, but it’s not the final destination,” she asserted, emphasizing the need to continue efforts on housing affordability and homelessness.

The National Association of Home Builders welcomed the legislation, calling it a “historic housing package” and stressing that it would help tackle affordability challenges across the nation.

Despite the bill’s advancement, some lawmakers remain opposed, raising concerns about federal overreach and restrictions on homebuyers. A number of Republican senators, including Ted Cruz and Rand Paul, voted against the bill, citing worries about its implications for rental housing development and local control over zoning.

Cruz specifically criticized parts of the bill that limit the time frame for new rental housing creation, while other critics expressed concerns over increasing federal authority in local land use decisions.

As for the current housing market, home prices continue to trend upward, with a reported increase of 2.4% in March from the previous year. The median price for single-family homes aligns closely with mortgage rates that hover around 6.02%.

However, the legislation does not directly tackle persistent labor shortages or rising construction costs. The construction sector anticipates needing hundreds of thousands of new workers to address service demand in the forthcoming years, while material costs have surged significantly in recent months.