Bipartisan Housing Act Passes Congress to Ease Cost of Living

The House of Representatives delivered final approval for a sweeping bipartisan housing package on June 23, 2026, aiming to mitigate escalating costs of living through streamlined building regulations, local incentives, and strict limits on institutional home buyers before upcoming midterm elections.

WASHINGTON – The House of Representatives passed a bipartisan bill June 23 that seeks to alleviate a growing housing crisis by streamlining construction regulations, encouraging local innovation and limiting investor purchases of homes, among other steps.

The legislation – a major priority for both Republicans and Democrats ahead of this fall’s midterm elections – passed overwhelmingly, with a final tally of 358-32. The vote comes a day after the Senate passed the bill 85-5. It will go to President Donald Trump‘s desk, where he is expected to sign it on Wednesday at the Capitol.

After clearing logjams in the White House and House of Representatives, the legislation drew broad support in an election year in which both parties are increasingly aware that voters have said they’re fed up with the high cost of living. This shared pressure reflects intensifying public anxiety over broader economic hardships, including inflation, high fuel prices, and the persistent disruptions linked to international trade tariffs.

The 21st Century Road to Housing Act has been over a year in the making and has encouraged a national discussion of why housing is so unaffordable – and what can be done to fix it. Dozens of individual bills were combined to build the package following months of intense dealmaking, a unique display of unity in a divided congressional session.

“It’s a highly consequential piece of legislation,” said Dennis Shea, the executive vice president of the Bipartisan Policy Center’s Terwilliger Center for Housing Policy. “It demonstrates that members of both parties are working together to tackle the housing affordability challenge. They’re hearing from their constituents that rising housing costs are a real problem.”

The bill was largely championed in Congress by Rep. French Hill, R-Arkansas; Rep. Maxine Waters, D-California; Sen. Elizabeth Warren, D-Massachusetts; and Sen. Tim Scott, R-South Carolina. Representative Jim Himes, a Connecticut Democrat, praised the rare bipartisan breakthrough, stating that lawmakers achieved concrete progress despite a polarized environment.

Hill, the chairman of the House Financial Services Committee, characterized it “one of the most significant bipartisan housing reforms in recent memory.” He emphasized that Congress has successfully enacted measurable, accountable reforms to help build more inventory and protect the American dream.

In a speech, he called the legislation an example of “Congress working at its best, tackling the challenges of the American people, offering solutions and having those enacted into law.”

Waters, the ranking Democrat on the Financial Services Committee, said it was a “first step” toward addressing the nation’s affordable housing crisis. She noted that the average first-time homebuyer is now 40 years old, demanding bold systemic change.

“This bill speaks to the real change that our constituents have been demanding,” she said.

Why is there a housing crisis in America?

There are numerous reasons for the housing shortage, but one of the most important is the sharp decline in development after the financial crisis of 2008. New-home construction tumbled, then stayed depressed for over a decade. Recent federal assessments indicate an absolute supply deficit of 10 million properties nationwide.

With so little supply, prices are surging, keeping housing both for rent and for purchase out of reach of many Americans. The median price of a previously owned home sold in May was $429,300, according to the National Association of Realtors. That’s up a whopping 52% from just before the pandemic.

As housing remains out of reach, meanwhile, more Americans are feeling the pinch. One-quarter of all owners and half of all renters are “cost-burdened,” meaning they pay more than one-third of their income for housing. Rent costs remain 17.2% higher than pre-pandemic baselines despite three years of modest monthly declines.

The number of people living with family or friends is also increasing: Household formation has fallen sharply since the pandemic, according to a report released earlier in June. A Harvard University study confirmed that existing home sales crashed to three-decade lows because of these historic acquisition barriers.

The broader real estate market has been stuck in a deep slump since 2022, when mortgage rates spiked from historic pandemic lows. Annual sales velocity has hovered around 4 million units, far below the historical baseline of 5.2 million homes.

What is in the housing bill that just passed Congress?

With the crisis so deeply entrenched in the economy, housing observers believe it needs to be tackled on a variety of fronts. The finished framework secured support from a broad coalition, including tenant advocacy networks and landlord trade groups.

Shea thinks one of the bill’s key components is a change to federal regulations of manufactured housing that would streamline construction of such houses. Factory-built homes can cost hundreds of thousands of dollars less than those built on the property site.

The legislation also seeks to limit large investors – those with at least 350 properties – from buying homes. That idea has broad support from lawmakers, although most housing experts disagree that such a step is needed. A separate requirement forcing immediate sales within 7 years was omitted.

The package provides direct capital grants to local municipalities that exceed median homebuilding paces, funds infrastructure conversion projects, and creates a zoning reform framework. It further raises funding caps for public housing renovations and creates a streamlined disaster recovery rebuilding program.

The bill “is not going to solve the affordability challenge,” Shea told USA TODAY. “That will take action at the state and local level and with the private sector. But it is very meaningful.”

Future Outlook

Industry analysts expect the provisions within the 21st Century Road to Housing Act to phase into the market over the next several years. While the regulatory easing for modular housing will immediately reduce manufacturing costs, the localized zoning incentives rely entirely on voluntary participation by municipal governments.

Large-scale infrastructure conversions, such as turning abandoned commercial properties into multi-family residential complexes, will require significant local planning and matching capital. In high-density states like California, federal funding grants targeting urban centers could accelerate affordable housing pipelines, though the ultimate impact on median home prices will depend heavily on private sector execution and mortgage rate stabilization.

FAQs

Why is there a housing shortage in the United States?

The shortage stems primarily from a decade-long collapse in residential construction following the 2008 financial crisis. Combined with rising material costs and restrictive local zoning laws, the nation has accumulated a housing deficit estimated at 10 million units.

How does the bill restrict corporate landlords and institutional investors?

The legislation restricts large-scale corporate investors that possess a portfolio of 350 or more properties from purchasing additional single-family homes. This provision aims to reduce competition for working-class families trying to buy starter homes.

What are cost-burdened households?

A household is considered cost-burdened when it spends more than 33% of its gross monthly income on housing expenses, including rent, mortgages, utilities, and property taxes. Currently, half of all American renters meet this definition.

How does the bill encourage affordable home construction?

The act streamlines federal regulatory oversight for factory-manufactured and modular housing, which are significantly less expensive to build than traditional sites. It also rewards local governments with additional federal grant funding if they exceed median homebuilding rates.