The U.S. House of Representatives has approved a substantial bipartisan housing package geared toward alleviating the ongoing affordability crisis by promoting increased residential construction and easing regulatory impediments at the state and local levels.
The bill, known as the Housing for the 21st Century Act, is spearheaded by House Financial Services Committee Chair French Hill, a Republican from Arkansas, alongside Ranking Member Maxine Waters, a Democrat from California. On Monday, the legislation passed the House with a decisive vote tally of 390 in favor and 9 against, signaling a rare moment of consensus in an otherwise divided Congress.
This legislative package amalgamates over 20 distinct provisions designed to strengthen housing initiatives. Among these are directives for new studies by the Government Accountability Office focused on identifying and addressing gaps within existing federal housing programs. Additionally, the bill proposes updates to the Department of Housing and Urban Development's HOME Investment Partnerships Program to better support affordable housing efforts.
Crucially, the package incorporates incentives aimed at local governments that commit to relaxing zoning laws and other development constraints that have historically discouraged or delayed residential construction. The overarching goal is to stimulate supply-side solutions to the housing shortage by motivating jurisdictions to reduce barriers and facilitate the expansion of housing inventories.
Having advanced from committee with a near-unanimous 50–1 vote in December, the bill is now poised for Senate consideration. Lawmakers in the upper chamber are expected to refine the legislation and negotiate a version that can achieve final approval.
However, concerns regarding adequate funding for essential rental assistance and homeownership programs remain prominent. Representative Waters highlighted that policy adjustments alone will not resolve the housing shortfall if underlying funding deficiencies persist, emphasizing the necessity of properly financing these programs to ensure their effectiveness.
Senators Tim Scott (R-South Carolina) and Elizabeth Warren (D-Massachusetts) previously advocated for a bipartisan measure known as the ROAD to Housing Act, which the Senate had incorporated into its version of the defense authorization bill. Nonetheless, the housing components were ultimately excised during final legislative negotiations.
Senator Warren criticized House Republicans for obstructing efforts related to the measure, arguing that expanding supply and modernizing federal housing programs would contribute to cost reductions and improved access. Chair Hill has since expressed commitment to collaborating with Senator Scott and other stakeholders to achieve a housing bill acceptable to both chambers and signable by the President.
The proposed legislation enjoys backing from a broad coalition encompassing more than 50 housing industry and advocacy organizations. Notable supporters include the Affordable Housing Tax Credit Coalition, the American Hotel & Lodging Association, and Americans for Prosperity, reflecting widespread endorsement of supply-focused strategies to improve housing affordability.
In financial markets, key housing sector equities exhibited modest price movements following the bill's passage in the House. For example, shares of Opendoor Technologies Inc. (NASDAQ:OPEN) edged up 0.20% to $4.94 in after-hours trading, while Offerpad Solutions Inc. (NYSE:OPAD) experienced a 2.25% gain, reaching $0.89 per share.
Conversely, shares of major home improvement retailers such as Home Depot Inc. (NYSE:HD) and Lowe’s Companies Inc. (NYSE:LOW) slipped slightly, declining 0.17% to $380.34 and 0.82% to $276.00 respectively. Real estate investment funds showed marginal positive shifts, with the Vanguard Real Estate Index Fund ETF (NYSE:VNQ) increasing 0.28% to $92.90 and the iShares U.S. Real Estate ETF (NYSE:IYR) rising 0.05% to $98.11 at the time of reporting.