The Senate passed a piece of bipartisan legislation Monday that aimed to lower the cost of housing.
The upper chamber passed the 21st Century ROAD to Housing Act, which aimed to tackle the housing affordability crisis by cutting red tape and increasing the housing supply, expanding loans to build housing and curbing Wall Street’s ownership of single-family homes. While the House and Senate initially had their own versions of the bill, both chambers reached a deal Tuesday.
Young people and families have struggled to afford a home. The typical age of first-time homebuyers rose to an all-time high of 40 years in November 2025, according to the National Association of Realtors, with the share of first-time home buyers falling to 21%.
The Senate passed a version that was amended by the House, and the House will have to approve the Senate’s tweaks before sending it to President Donald Trump’s desk. A version of the bill initially passed the Senate in a 89-10 vote on March 12, and the House passed an amended version on May 20 in a 396-13 vote.
The bill advanced out of the Senate Banking, Housing and Urban Affairs Committee and the House Financial Services Committee. Republicans and Democrats in the committees celebrated their cooperation on the legislation.
Republican Louisiana Sen. John Kennedy told reporters Monday that the bill “is better than sex.”
“2026 is the Year of Affordability, and the 21st Century ROAD to Housing Act gives Congress a chance to deliver a major win for families across the country,” Banking, Housing and Urban Affairs Committee Chairman Tim Scott said. “This bill is the result of years of work to lower costs, expand housing supply, cut red tape, protect taxpayers, and help more Americans achieve the dream of homeownership. For me, this is personal. I know what it means for a family to have a safe, affordable place to call home because I watched my mother work hard to make that dream a reality in North Charleston, South Carolina. Now it is time to move forward, get this bill across the finish line, and deliver real relief for the American people.”
Republican Arkansas Rep. French Hill, the chair of the House Financial Services Committee, said the legislation is a “meaningful step” toward housing affordability.
“Bipartisan, bicameral legislating is never easy – but progress matters. I appreciate the Senate including a three-year sunset on the CDBG-DR program and adopting key House priorities including 9 community banking bills and the House’s language limiting institutional investors from outcompeting American families in the housing market,” Hill said. “This bill is a meaningful step toward increasing housing supply, improving affordability, and helping more Americans achieve homeownership. I look forward to President Trump signing it into law.”
Trump signed an executive order on Jan. 20 to prevent large institutional investors from buying single-family homes that could otherwise be purchased by families. He has called on Congress to permanently codify a ban on investors buying up these homes, stating that “people live in homes, not corporations.”
The legislation cuts red tape by streamlining environmental reviews, modernizes zoning and reduces regulatory barriers to accelerate housing construction, according to the Senate Banking, Housing and Urban Affairs Committee. It also included provisions to raise loan limits for multifamily programs, modernized HOME Investment Partnerships Program rules and increased bank investment caps in affordable housing.
The bill further allowed up to 20% of Community Development Block Grant (CDBG) funds for new affordable housing construction.
Democratic Massachusetts Sen. Elizabeth Warren, the ranking member of the Senate committee, said the legislation would “represent the biggest housing bill in more than 30 years.” House Financial Services Committee ranking member Maxine Waters stated the bill represented “meaningful progress,” though there was more work to be done.
“While no compromise is perfect, this legislation reflects meaningful progress and incorporates over 50 housing and banking provisions which Democrats fought to secure, but our work is far from done,” Waters said. “This is an important step forward, not the final destination. I look forward to continuing my work to lower housing costs, address homelessness, expand affordable housing, and ensure every family has access to a safe and stable place to call home.”
The National Association of Home Builders expressed their support for the bill, stating it was a “historic housing package” that would “expand housing opportunities” and help fight affordability challenges.
“NAHB congratulates congressional leaders for reaching a bicameral and bipartisan agreement to move forward a final version of the 21st Century Road to Housing Act. This landmark legislation would expand housing opportunities for buyers and renters, strengthen homeownership, and help tackle the affordability challenges facing communities nationwide. It’s time for Congress to move this historic housing package across the finish line,” Bill Owens, chairman of the National Association of Home Builders, said in a statement.
Some lawmakers continued to oppose the bill, citing concerns about federal overreach and restrictions for home and rental buyers. Republican Sens. Ted Cruz of Texas, Rand Paul of Kentucky, Mike Lee of Utah, Tommy Tuberville of Alabama, Ron Johnson of Wisconsin, Alan Armstrong of Oklahoma, Rick Scott of Florida and Todd Young of Indiana voted against the bill’s advancement in a procedural vote Tuesday.
In March, Cruz argued the legislation restricted Americans hoping to build new rental housing by “requiring build-to-rent homes to be sold within seven years.” He argued against giving the Department of Housing and Urban Development (HUD) authority to develop zoning and land-use frameworks, stating that Washington bureaucrats should not dictate zoning decisions for local communities.
“I agree with President Trump that large banks should not be buying single-family homes,” Cruz said. “Unfortunately, this legislation goes beyond that principle and restricts those hoping to build new rental housing for Americans by requiring build-to-rent homes to be sold within seven years. Restricting the supply of newly built rental units should not be enshrined in law.”
“Additionally, giving the Department of Housing and Urban Development authority to develop zoning and land-use frameworks raises serious concerns. Washington bureaucrats should not dictate zoning decisions for local communities like my hometown of Houston,” Cruz continued.
A spokesperson for Lee said he voted against the bill because it would expand HUD programs “eliminated in previous budget requests by President Trump” and gave the federal government more authority over local zoning and land-use decisions.
All thirteen members who voted against the bill in the House were Republicans, including Reps. Lauren Boebert of Colorado, Andy Biggs of Arizona, Keith Self of Texas and Warren Davidson of Ohio.
U.S. housing prices have remained high, growing 2.4% year-over-year in March, according to CEIC. The median price for single-family homes was roughly $436,523, and 30-year fixed mortgage rates were averaging close to 6.02%.
However, the legislation didn’t directly address labor shortages or rising input costs in the construction industry. The construction industry needed an estimated 349,000 new net workers in 2026 to meet the demand for construction services, and 456,000 net workers would be needed in 2027, according to Associated Builders and Contractors (ABC). The prices of construction materials surged 2.6% in June, up nearly 10% year-over-year, according to ABC data.
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