US Republicans and Democrats in Congress are lining up behind legislation to encourage more affordable housing, in a rare example of bipartisan action on a quality-of-life issue for voters.
The bill, which has drawn broad support from industry groups, would overhaul regulations to make it faster and cheaper to build new housing. It would also modernize rules for factory-built housing and ban large investment groups from buying more single-family homes, a measure backed by President Donald Trump.
The affordability debate has encompassed everything from the cost of eggs to child care, but few items account for a larger share of household budgets than housing.
Economists say the U.S. has a shortage of roughly 4 million homes after years of underbuilding following the 2008 financial crisis, while local zoning rules often make it difficult to build in developed areas.
Supply-chain disruptions during the COVID-19 pandemic drove building-material costs higher as well, while the sharp increase in interest rates that followed also pushed up mortgage costs.
According to Harvard University’s Joint Center for Housing Studies, home prices have risen 60% since 2019.
The median price of a single-family home in 2024 reached five times the median household income—well above the ratio widely considered to be affordable.
Curbing Corporate Home Purchases:
Lawmakers are eager to show voters that they are tackling the issue ahead of the November 2026 midterm elections, which will determine control of Congress.
The legislation would streamline federal environmental reviews for construction projects and make it easier to convert vacant buildings into apartments.
It also would expand financing for affordable housing and increase loan limits for federally backed mortgage insurance programs for multifamily homes.
The National Association of Realtors and civic groups like the National League of Cities support the bill.
Companies that own more than 350 single-family homes would be prohibited from buying more, in an effort to prevent them from outbidding individual buyers.
Even the bill’s champions say it will not fix the problem. Warren said it “takes a good first step” to rein in corporate landlords, while Norbert Michel of the libertarian Cato Institute said it mainly tweaks existing policy in an attempt to show voters that lawmakers are taking action.
“It’s a political ploy to say they are doing something about housing,” he said.
