For years, the U.S. has simply not built enough homes. That chronic underproduction is a major driver of today’s high housing costs. The surprising bipartisan momentum signals a shared recognition that the federal government may need to play a more active role in expanding housing supply.
What’s new
The House of Representatives passed the Housing for the 21st Century Act last night with overwhelming support—390 to 9. A companion bill in the Senate, the ROAD to Housing Act, cleared the Senate Banking Committee unanimously last year.
Before anything becomes law, the two versions must be merged, approved by both chambers, and sent to President Trump for signature.
What the bills aim to do
Both proposals use federal incentives to encourage more homebuilding. Key elements include:
• Developing best‑practice guidance for state and local land‑use policies
• Streamlining environmental review processes for housing projects
• Raising Federal Housing Administration loan limits for multifamily construction
• Eliminating the requirement that manufactured homes have a “permanent chassis,” a rule that has added cost and slowed adoption of modern factory‑built housing
None of these changes alone would transform the housing market, but together they chip away at long‑standing barriers to building more homes.
The numbers behind the shortage
Homebuilders have started roughly 1.4 million units annually for the past three years.
That’s below the 1.6 million starts seen in 2021—and far below the 2 million‑plus levels reached in earlier decades when the U.S. population was smaller.
This persistent gap helps explain why national home prices have climbed about 88% over the past decade, according to the S&P CoreLogic Case‑Shiller Index.
What experts say
Redfin chief economist Daryl Fairweather told Axios that encouraging better zoning practices and reducing federal bottlenecks could “unlock more housing supply, particularly in high‑demand markets.” She added that making it easier to build a wider range of housing types should help moderate prices for both renters and buyers.
What the bills don’t solve
Some forces pushing prices higher are outside the scope of the legislation:
• Construction costs have risen due to labor shortages and pricier materials like lumber, drywall, and copper.
• High interest rates continue to challenge builders.
• Zoning authority ultimately rests with states and local governments, where political battles over new development vary widely.
As Libby Cantrill of Pimco noted, many restrictive land‑use rules are local, meaning federal action can only go so far in reducing red tape.
The Trump administration’s role
The administration has leaned heavily on executive authority to address housing affordability, though many of its actions focus on demand and financing rather than supply. Examples include:
• Directing Fannie Mae and Freddie Mac to purchase billions in mortgage‑backed securities
• Floating the idea of 50‑year mortgages
• Proposing limits on large institutional investors buying single‑family rentals
• Supporting access to retirement funds for down payments
What to watch next
The White House has signaled support for the legislative push. However, according to the Wall Street Journal, Congressional Republicans have resisted efforts to include a ban on Wall Street firms purchasing single‑family homes