Trump’s Housing Bill Passes Congress
In a significant achievement for President Donald Trump, Congress has approved a major housing bill designed to boost the national housing supply and reduce costs. On Tuesday, the House voted overwhelmingly in favor of the Senate-passed bill, achieving a bipartisan consensus of 358-32, where the sole opposition came from Republicans. Every Democrat present supported the measure.
The legislation, known as the 21st Century Road to Housing Act, marks one of the most critical housing initiatives in decades. It features a crucial component from Trump’s proposal that seeks to restrict large institutional investors from purchasing single-family homes, aiming to empower individual buyers against private equity firms.
The bill also aims to simplify federal environmental housing reviews, loosen regulations on factory-built homes construction, and encourage local governments to revise zoning laws to facilitate more housing development, among other provisions—over 45 in total.
Federal grants will be directed to municipalities known for new housing constructions, and a pilot program will be established to revitalize vacant properties within communities. “This policy is all about building more homes, which could lead to lower costs and greater opportunity for all Americans,” expressed Rep. Mike Haridopoulos (R-Fla.) after the vote.
It’s expected that the president will sign the bill into law by Wednesday.
This vote comes amid rising home prices, with national median home costs surpassing $400,000 and median rents exceeding $1,760—reflecting increases of 34.4% and 17.9% since 2019, respectively.
House Speaker Mike Johnson (R-Louisiana) utilized a fast-track procedure known as suspension of rules to pass the bill, which requires a two-thirds majority. Interestingly, more Democrats supported the bill than Republicans.
However, some conservatives voiced their opposition, citing frustrations that the SAVE America Act, which includes voter ID requirements and a ban on men in women’s sports, was not attached to the housing package. “The Senate can’t keep blocking President Trump’s policies like this,” remarked Rep. Anna Paulina Luna (R-Fla.) on social media.
There are also calls from conservative groups to link this act with a renewal of a significant surveillance program, though differing opinions among Republicans might derail that plan. Some Republicans showed skepticism towards the bill, arguing it included proposals favored by progressive Democrats.
“This housing bill is filled with wasteful spending,” commented Rep. Chip Roy (R-Texas) in a social media post.
Ultimately, the bill also reached a compromise that restricts large investors, who own 350 or more single-family homes, from making further purchases while allowing exceptions for rental property construction. Such investors, however, aren’t required to divest their existing properties.
Critics contend that large investors contribute minimally to housing shortages, owning less than 1% of the housing stock according to the Parkle Institute. A government report found that the ownership rate for single-family rentals is slightly higher, between 1% and 3%, particularly in markets like Jacksonville, Florida (22%) and Phoenix (13%).
The bill’s approval comes as Republicans confront challenges with voters concerned about economic conditions and living costs. However, this measure could provide tangible solutions for housing affordability, an increasingly pressing issue as the upcoming midterm elections approach.
Recent polling indicated that merely 31% of voters approve of President Trump’s economic handling, although this is a slight uptick from a record low of 29% in May.
