WASHINGTON – The U.S. House of Representatives on Monday overwhelmingly approved a bipartisan package of legislation aimed at addressing the nation’s housing affordability crisis. The Housing for the 21st Century Act passed by a vote of 390-9, signaling a rare moment of consensus in a deeply divided Congress. The bill now moves to the Senate, where a similar measure passed last year, setting the stage for negotiations to reconcile the two versions.
The legislation comes as the housing market continues to grapple with a significant shortage of homes and rapidly increasing prices. According to Realtor.com® economists, the nation faces a shortfall of approximately 4 million homes, a deficit that has contributed to a 69% increase in median house prices between 1995, and 2024. Even with substantial changes to housing policy, experts estimate it would take a decade to address the current supply gap.
“The housing and homelessness crisis has reached a breaking point,” stated Representative Maxine Waters, D-Calif., on the House floor. The bipartisan support for the bill, championed by Representatives French Hill, R-Ark., and Waters, reflects a growing recognition of the urgency of the situation.
The House bill contains roughly two dozen provisions designed to streamline the homebuilding process and expand access to financing. Key elements include measures to reduce regulatory hurdles, incentivize local governments to adopt more builder-friendly zoning practices, and encourage the construction of more factory-built homes. Specifically, the bill seeks to remove a requirement dating back to the 1970s that manufactured homes be built on permanent chassis, even if they are never moved from their initial location, thereby reducing construction costs.
The legislation also aims to bolster community banks, providing them with greater flexibility in custodial and reciprocal deposits, potentially enabling them to offer more mortgages. Changes are also proposed to ease the process of starting new banks and to modify the Federal Deposit Insurance Corporation’s (FDIC) approach to banking mergers.
While the House and Senate bills share the common goal of increasing housing affordability, there are notable differences. The Senate version, which passed as part of a larger defense measure, focuses more heavily on creating new housing programs, while the House bill emphasizes regulatory reform. The Senate bill received unanimous support from the Banking, Housing, and Urban Affairs Committee, with 24 senators voting in favor. The House Financial Services Committee advanced its bill with a vote of 50-1 in December.
One area where the bills diverge is in the treatment of community banks. The House bill includes specific provisions to support these institutions, while the Senate version does not. This difference is likely to be a key point of negotiation as lawmakers work to reconcile the two measures.
Despite the broad bipartisan support, some lawmakers caution that the legislation’s impact will be limited without adequate funding for housing programs. Representative Waters emphasized that “policy reforms alone are not enough” and that “these programs must be funded if they are going to work.”
Representative French Hill expressed optimism about reaching a compromise with the Senate. “Getting a housing bill across the finish line is a shared goal” between himself and Senator Tim Scott, R-S.C., he stated, adding that he would work collaboratively to identify areas of common ground and secure a bill that President Donald Trump will sign into law.
Representative Mike Flood, R-Neb., highlighted the personal significance of homeownership for many Americans. “Nothing’s more personal to Americans than their opportunity to have a home,” he said, underscoring the widespread desire to address the housing crisis.
Notably absent from the current legislation is a formal ban on large investors purchasing homes, a proposal championed by President Trump. However, Representative Hill indicated that lawmakers are considering separate bills that would address this issue and could be incorporated into the final package if consensus emerges in both the House and Senate.
The passage of the House bill represents a significant step forward in the effort to address the nation’s housing challenges. With momentum building in both chambers of Congress and support from the White House, there is a growing expectation that a comprehensive housing package could become law before the end of the year, offering a potential boost to the housing market and increased opportunities for homeownership.
