WASHINGTON — The House passed a major housing affordability bill Tuesday aimed at boosting the supply of homes and cracking down on large investors’ buying up houses.
Subscribe to read this story ad-free
Get unlimited access to ad-free articles and exclusive content.
The bill passed 358-32 one day after it cleared the Senate by a vote of 85-5. It now goes to President Donald Trump, who is supportive and is expected to sign it into law.
It is a rare bipartisan achievement for a largely gridlocked Congress in Trump’s second term, giving Republicans, who control both chambers, a desperately needed victory on the politically potent issue of lowering costs just months ahead of the midterm elections.
The 21st Century ROAD to Housing Act includes grant funding and pilot programs to build new homes. It would also ease some regulations and empower local governments to expedite reviews to build housing. And a key section titled “Homes Are For People, Not Corporations” would limit any “large institutional investor” from buying single-family homes.
The bill had stalled for months amid disputes between the House and the Senate. But a breakthrough came last week when key committee leaders in both chambers struck a deal, namely Sens. Tim Scott, R-S.C., and Elizabeth Warren, D-Mass., and Reps. French Hill, R-Ark., and Maxine Waters, D-Calif.
The national political environment has deteriorated for Republicans ahead of the midterms. Trump’s approval rating is just 37% in a recent Associated Press poll, dragged down by the fact that just 33% approve of his handling of the economy.
The cost of living continues to rank as a top issue for voters, often the No. 1 concern. A June NBC News poll found that almost 80% of U.S. voters believe the “American Dream” is harder to achieve today than it was a generation ago.
The bill gives the Republican-led Congress a tangible victory on a top affordability concern as housing costs squeeze American families. GOP leaders highlighted the deregulatory provisions aimed at boosting housing supply, while Democrats like Warren focused on policies taking on private equity and investors accused of buying homes and raising prices for regular people.
Waters said the bill “reflects meaningful progress and incorporates over 50 housing and banking provisions which Democrats fought to secure.”
“This is an important step forward, not the final destination,” she said in a statement. “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.”
Democrats also faced the political question of whether to give Trump a victory while his ratings are low on this very issue. But Democratic sources said that between the liberal policy achievements in the bill and the overwhelmingly bipartisan vote, the political credit would break both ways.
“It’s a significant crackdown on Wall Street landlords that will help working people — and the bipartisan support means the political credit is shared,” said a Democratic strategist, who spoke on condition of anonymity to discuss the calculation.
Scott called it 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.”
The package includes a provision from Sens. Bernie Moreno, R-Ohio, and Raphael Warnock, D-Ga., to bar institutional investors that own over 350 single-family homes from buying more.
That compromise began when Moreno reached out to Warnock this year to discuss how to restrain private equity investors’ buying starter homes for rent, two sources familiar with the matter told NBC News. Warnock is close to the issue, as the booming Atlanta area has plenty of those investors.
Senate Majority Leader John Thune, R-S.D., had also pushed to get the bill over the line after it stalled for months.
“There’s a lot of good in there. And I think it maximizes both the equities the House has in it, the Senate has in it, and both parties have had opportunities to weigh into this,” Thune told reporters. “But in the end, it’s about increasing the supply of housing in this country and making it more affordable, and I think that is something that the American people want to see us working on.”
