A bipartisan push in Congress to tackle housing affordability is gaining momentum. This week, the House of Representatives overwhelmingly passed the Housing for the 21st Century Act, and the Senate is expected to vote soon on a similar measure.
The legislation, approved 390-9 in the House, seeks to increase community bank lending, encourage updates to local zoning laws that often limit new home construction, lower costs for manufactured homes, and make it easier to convert vacant office buildings into apartments.
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Dennis Shea, executive vice president at the Bipartisan Policy Center, said changing local zoning rules remains a major component.
"Since the Great Recession, I think it will be the most consequential housing package out of Congress," Shea said.
The push comes as financial pressures worsen for millions of Americans. A recent survey from Current, conducted by Talker Research, found nine in 10 Americans believe the nation is in a “cost-of-living crisis.” Harvard’s Joint Center for Housing Studies reported this month that “the number of cost-burdened households rose to record highs in 2024 as housing affordability remained a widespread challenge.”
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Danielle Hale, chief economist at Realtor.com, said the reforms could make a difference if enacted, but the impact will not happen overnight.
"I think the challenging thing with tackling the housing shortage is there is no silver bullet solution," Hale said. "You've got to do a lot of little things and you need to do them well."
While Congress debates housing changes, President Trump is moving forward with his own plans. He has said his choice to lead the Federal Reserve, Kevin Warsh, will further cut interest rates. The president’s upcoming State of the Union address at the end of the month is also expected to address additional housing proposals, including potential restrictions on investment groups purchasing single-family homes.
