The Next Steps in U.S. Housing Legislation

## Bipartisan Momentum Builds for Comprehensive U.S. Housing Affordability Reform

Federal efforts aimed at tackling the deeply entrenched U.S. housing affordability crisis are gaining significant traction on Capitol Hill, spurred by a wave of unexpected bipartisan consensus. Legislative analysts now suggest that this robust cross-aisle support could be sufficient to propel major housing reform measures through Congress and toward enactment in the coming year.

According to market commentary, including assessments from firms like Raymond James, this legislative push is strongly favoring mechanisms designed to stimulate housing supply, with specific emphasis placed on manufactured and high-density multifamily residential developments. These areas are central to both the House and Senate proposals, which focus on cutting regulatory barriers and accelerating construction timelines.

The renewed focus on supply-side solutions was recently demonstrated by key committee actions. This week, the House Financial Services Committee delivered a powerful signal regarding the bill’s viability by overwhelmingly approving the "Housing for the 21st Century Act" in a striking 50-to-1 vote. This follows the Senate's earlier passage of its own corresponding measure, the "ROAD to Housing Act," which was notably advanced as part of the broader National Defense Authorization Act (NDAA).

Analysts highlighted the constructive and collaborative nature of the committee debates as a crucial indicator of future progress. While lawmakers acknowledge that the current bills represent an initial stride rather than a complete cure for the housing deficit, this unified approach drastically increases the probability of continued legislative momentum into the new year.

The House bill, in particular, aims to modernize and streamline the current array of federal housing initiatives. Its core provisions include offering official guidance on best practices for local zoning, creating new grants administered by HUD to incentivize regional planning and the adoption of pre-approved construction designs, increasing maximum loan limits for multifamily construction projects, and implementing changes to federal permitting rules to shorten approval queues.

A dedicated component of the legislation seeks to broaden the market for manufactured and modular housing by dismantling specific structural requirements and establishing the Department of Housing and Urban Development (HUD) as the primary regulatory body for the sector. Amendments added during the committee markup also focused on support for veteran homeownership and expanded height allowances for certain multifamily developments.

The next procedural step will see the "Housing for the 21st Century Act" head to the full House floor for a vote, expected in early 2026. This action will officially initiate negotiations with the Senate during the spring session. While both the House and Senate packages share substantial overlap in their primary objectives and structure, financial advisors note that differences remain, particularly concerning the ultimate scale of financial incentives and long-term financing support that will be offered.