A new bill aims to make homes affordable again. Here's how

Housing affordability is a hot-button issue that’s holding many Americans back from realizing their dream of homeownership. But with the passage Tuesday of a House bill that’s being hailed as the most comprehensive, bipartisan housing legislation in nearly a decade, lawmakers hope to change their fortunes.

The House passed H.R. 6644, or the Housing for the 21st Century Act, with overwhelming bipartisan support in a 390-9 vote. Introduced late last year, the legislation has drawn praise from key players in the housing industry for streamlining cumbersome regulatory guidelines and expanding affordable housing finance options.

The House bill is similar to the Senate’s Renewing Opportunity in the American Dream (ROAD) to Housing Act of 2025 (S.2651), which was first introduced in July but hasn’t gone to the floor for a vote. Once the Senate passes its bill, Congress can reconcile both pieces of legislation before sending a final package to President Donald Trump for his signature.

How the bill could help bring down housing costs

The House’s legislation would require best-practice frameworks for state and local authorities to streamline land-use policies and zoning requirements. These barriers, home builders say, hamper their ability to build homes faster and more affordably due to construction delays from lengthy permitting processes. 

For the first time in recent history, new homes outpaced resales in price cuts, with nearly one in five new homes recording price reductions compared to 18.3% of existing homes in the fourth quarter of 2025, according to a new report from Realtor.com. Nationally, the median existing-home price reached $396,800 in January, up 0.9% from a year ago, according to the National Association of Realtors (NAR). This marks the 31st consecutive month of annual price increases, NAR said.

The bill also streamlines environmental reviews for smaller-scale housing projects and allows government-backed housing developments to skip redundant paperwork. These provisions, housing experts say, could help bring down housing costs and boost housing supply in a meaningful way that benefits everyone.

Rep. Mike Flood (R-Nebraska), one of the bill’s four bipartisan sponsors, told The Hill that one of the “neatest” things about the bill is relaxing rules for manufactured homes.

Specifically, it nixes the requirement that the structure must be on a chassis to qualify for most loan programs, opening up financing for this affordable housing option to more homebuyers. According to the Manufactured Housing Institute, the average manufactured home price is $123,300 compared to the average stick-built home price of $405,939.

The bill would raise multifamily loan limits and index them in a way that will “better reflect the trust cost of construction and help stimulate new apartment construction by making these loans more financially feasible to use,” according to the National Association of Home Builders (NAHB).

Housing industry praises progress on addressing affordability

Trade groups representing all corners of the housing industry — real estate, mortgage finance, home building and multifamily — have applauded the new legislation.

“With the nation facing a shortage of roughly 5 million homes and first-time buyers now entering the market at a median age of 40, bold action to expand supply and remove barriers to homeownership has never been more urgent,” Shannon McGahn, NAR’s executive vice president and chief advocacy officer, said in a statement. 

“Buying a home remains one of the greatest drivers of generational wealth and long-term financial stability.”

NAR also praised the bill’s provision of modernizing existing federal programs like HOME Investment Partnerships and the Community Development Block $SQ Grant Program, which provide federal grants to build affordable housing in local communities across the U.S.

NAHB Chairman Buddy Hughes also praised the legislation’s passage, noting that it “will reduce impediments to increasing the housing supply.”

The mortgage industry is happy about the bipartisan effort, too.

“This legislation advances several core MBA priorities, including regulatory modernization, broader [Federal Housing Administration] multifamily financing, stronger rural housing programs, and better coordination across federal housing agencies,” Bob Broeksmit, president and CEO of the Mortgage Bankers Association (MBA), said in a statement.

As the legislation moves through Congress, lawmakers must reconcile both chambers’ packages before becoming law. Critics note that the bills don’t directly address how to solve the housing shortage or how to increase new construction funding.

Still, housing advocates consider the momentum a major win after years of government inaction on an issue with far-reaching implications for Americans' budgets, future security and ability to create generational wealth.