The 21st Century ROAD to Housing Act (H.R. 6644) is a landmark bipartisan legislative package approved by Congress to address the nation’s housing affordability crisis by increasing housing supply, reducing regulatory barriers and reforming numerous federal housing programs. The legislation now heads to President Trump, who is expected to sign it into law.
This legislation has been a major priority of the National Association of REALTORS® and many housing organizations for nearly two years. Throughout the process, NAR and its nearly 1.5 million members worked closely with lawmakers from both parties, holding thousands of meetings on Capitol Hill, commissioning original housing research and public opinion polling, providing technical expertise, and advocating for policies that would increase housing opportunities across the country.
The final package combines nearly 50 individual housing proposals that address housing supply, affordability, financing, zoning, workforce development, fair housing, property rehabilitation and other housing challenges. It represents one of the most significant federal housing packages enacted in nearly two decades.
Some of the legislation’s key provisions include:
Investor Restrictions: Prohibits large institutional investors—those owning more than 350 single-family homes—from purchasing additional single-family homes, helping level the playing field for individual homebuyers.
Housing Supply and Zoning: Streamlines environmental reviews for qualifying housing projects while providing grants and loans to state and local governments that modernize zoning regulations and encourage new residential construction. Since local zoning has traditionally been governed through “home rule,” these incentives are intended to help communities address barriers to new housing.
Conversion and Rehabilitation: Provides funding to convert underutilized commercial buildings into residential housing, expand home rehabilitation programs and support manufactured housing initiatives, all aimed at creating additional housing supply at a lower cost.
Affordable Housing Expansion: Expands the HOME Investment Partnerships Program by increasing eligibility to households earning up to 100% of area median income while also increasing FHA multifamily mortgage limits to encourage additional housing development.
Banking and Investment: Raises the public welfare investment cap for banks from 15% to 20%, increasing their capacity to finance affordable housing projects and small-dollar mortgage programs. The legislation also includes several tax and financing provisions that homeowners should review with their accountants and financial advisors.
The legislation comes at a critical time. After more than a decade of underbuilding, the National Association of REALTORS® estimates the United States is short approximately 4.7 million homes. The lack of available inventory has contributed to rising home prices and rents, while higher mortgage rates, increasing property taxes and insurance costs have made homeownership more difficult for many Americans.
The shortage is especially challenging for middle-income families. NAR research estimates that approximately 310,000 homes priced at $261,000 or less are missing from today’s housing market, leaving many working families and first-time buyers with few affordable options.
The path to passage was lengthy, but it demonstrates what can be accomplished when lawmakers, industry professionals and housing advocates work together. The bill was supported by two consecutive NAR presidents and culminated last week when nearly 8,000 REALTORS® traveled to Washington, D.C., during the REALTORS® Legislative Meetings to urge Congress to move the legislation across the finish line.
Housing affordability has become one of the nation’s most pressing challenges. This legislation is designed to increase housing production, reduce regulatory barriers and create more opportunities for Americans to achieve the dream of homeownership. It represents a rare example of bipartisan cooperation and reflects the recognition that expanding housing supply is essential to making housing more affordable and attainable for future generations.
Please feel free to contact the Franklin Lakes office of Prominent Properties Sotheby’s International Realty if you have questions about how this legislation may impact the housing market or your real estate plans.
Charlie Oppler served as President of the National Association of REALTORS® in 2021 and is CEO of Prominent Properties Sotheby’s International Realty. This article was prepared using information from the 21st Century ROAD to Housing Act, the National Association of REALTORS®, Congress.gov and published reports.
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