Senate Unites on Bipartisan Housing Bill to Boost Supply

The Senate has introduced a major bipartisan bill to address America’s housing shortage.

The Renewing Opportunity in the American Dream to Housing Act of 2025 aims to boost the country’s supply of affordable housing, Marketwatch reported. The legislation was introduced by Sen. Tim Scott (R-S.C.) and Sen. Elizabeth Warren (D-Mass.), and according to Politico, is the first large housing package in a decade to win bipartisan support.

The bill addresses housing supply in several key ways.

It streamlines the development process by directing the Department of Housing and Urban Development to develop best practices for reexamining zoning and land-use policies. It also creates a pot of flexible funding for communities that are building more housing, as well as a pilot program to incentivize development in Community Development Block Grant participating jurisdictions.

The ROAD to Housing Act also cuts red tape surrounding the environmental review process and “right-sizes” the National Environmental Protection Act review for small developments.

The legislation also focuses on prefabricated and modular housing, encouraging construction of and improving access to financing for this type of housing.

The bipartisan support for this legislation signals the severity of the country’s housing crisis. Home prices hit another record high in May, as prices that month rose 2.3 percent year over year. Mortgage rates remain high, inching toward 7 percent. Despite increasing supply, demand has been sluggish as buyers are concerned about affordability.

“In the past, when federal lawmakers talked about ‘affordable housing’ they were referring to subsidized housing for low-income individuals and families,” Lisa Sturtevant, chief economist at Bright MLS, told MarketWatch. “However, the affordability challenge has moved up the income ladder and more and more Americans are struggling to afford to buy or rent a home.”

The bill offers an alternative path to affordable home ownership, as the White House has focused on lower interest rates as the solution for the housing market. President Trump has also mulled eliminating the capital gains tax on home sales. This could free up more inventory as owners whose homes have appreciated in value wouldn’t take a tax hit for selling.

However, the proposed legislation relies heavily on the Department of Housing and Urban Development, directing it to create several new programs and reexamine existing policies. This may prove difficult as Trump has pushed for staffing and funding cuts to the department.

The bill advanced unanimously past the Senate Budget Committee, and now goes to the full Senate chamber for a vote. It is reportedly expected to pass before Congress recesses in August.

— Quinn Waller