Congress passes the largest housing affordability bill in decades

Congress passes the largest housing affordability bill in decades

Workers work on the roofing structure of new home under construction, Tuesday, July 15, 2025, in Richardson, Texas.

Tony Gutierrez/AP


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Tony Gutierrez/AP

If there’s room for agreement on anything in Washington, it’s that lawmakers need to do something to make homeownership more affordable. On Tuesday, legislators on both sides of the aisle clinched the final vote in the House to pass the largest piece of housing legislation in decades.

The bill, called the 21st Century Road to Housing Act, passed 358 to 32 in the House. The Senate approved it Monday with similarly overwhelming bipartisan support. It now heads to President Trump’s desk for his signature.

In an interview with NPR, Sen. Elizabeth Warren, D-Mass., a co-sponsor of the bill, said housing affordability has become a priority for Congress.

“Every time every member of Congress goes back home they hear how urgent it is to bring down home prices. And that’s what the bill does,” she said.

A number of factors have made homes out of reach for many U.S. buyers. According to the real estate broker Redfin, a family needs an income of about $117,000 a year to afford the typical home on the market, almost $30,000 more than what most U.S. households earn.

Mortgage rates have also risen over the past several years, and that boosts the monthly cost of ownership. Rates had been falling earlier this year, but the war in Iran raised the cost of borrowing, and the nationwide average is now about 6.5%. Families also have less purchasing power, as inflation has outstripped wages.

But the main issue this bill tries to address is that the U.S. does not have enough houses to keep up with demand. Realtor.com estimated that last year the U.S. was short by more than 4 million housing units.

“Supply is the key problem here,” said Jeanna Kenney, assistant professor of economics, finance and real estate at Villanova University. “Anything you can do to make supply easier is going to be helpful in the long term.”

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