Housing relief passes senate, but house fate remains uncertain
Washington – A sweeping bipartisan package of bills aimed at lowering housing costs cleared the Senate on Thursday, marking the most significant housing legislation in decades. The 21st Century ROAD to Housing Act, championed by Senators Elizabeth Warren (D-Mass) and Tim Scott (R-S.C.), now faces an uncertain path in the House, encountering opposition from some conservative lawmakers despite President Trump's support. The vote in the Senate was a resounding 89-10, a rare display of unity during an election year.
The bill’s provisions target both construction and investment, but house hurdles loom.
The legislation seeks to streamline the development of new homes and ease regulations to reduce costs. A key component prohibits institutional investors from purchasing single-family homes, a measure favored by the White House. Proponents argue this will curtail competition and benefit prospective homebuyers.
“This bill offers real solutions that will unlock new home construction, drive down prices, and increase the supply of affordable homes,” stated Senate Majority Leader John Thune (R-S.C.) prior to the vote. The bill’s passage in the Senate follows a House approval last month with a 390-9 vote, but the Senate has since introduced amendments, necessitating a return to the House for reconsideration.
The White House has signaled its support for the Senate version, viewing it as a significant step towards expanding housing supply and affordability. However, President Trump has prioritized the SAVE America Act, a bill focused on corporate homeownership, raising concerns about the housing bill's momentum. The president has repeatedly emphasized the public’s desire for the SAVE Act, potentially complicating the legislative process. The Office of Management and Budget indicated support for the Senate bill, citing its advances in federal housing policy.
The need for action is stark. A recent CBS News poll revealed that over 8 in 10 Americans find it more difficult to buy a home than previous generations. Federal Reserve data indicates homebuyers now need to earn 43% more than the average worker to afford a typical home. The Senate’s move underscores the urgency of addressing escalating housing costs, even as political divisions threaten to derail progress.
House conservatives have voiced concerns, particularly regarding a temporary ban on the central bank issuing digital currency, which some seek to make permanent. House Freedom Caucus Chairman Andy Harris (R-Md.) indicated the House will address housing issues, but not necessarily in the way the Senate has presented it.
The next steps hinge
on the White House’s influence. Thune suggested the president’s advocacy could sway the House leadership. A conference committee to reconcile the differing versions of the bill remains a possibility, but the quickest route would be for the House to approve the Senate’s changes. The bill’s passage, or lack thereof, will have profound consequences for the nation’s housing market – a market already strained by affordability challenges.