Housing Bill Sits in Limbo

This week, Congress did something unusual. It came to an agreement on a potential solution for housing affordability.

Then the politics got in the way.

The bipartisan 21st Century ROAD to Housing Act sailed through Congress with overwhelming support, only to be sidelined when President Donald Trump abruptly canceled a signing ceremony and tied the bill’s fate to passage of separate election legislation. Whether the delay lasts days or weeks remains unclear, but the important takeaway is still what this bill could eventually mean for housing supply and investment.

No one in the industry expects the legislation to magically lower home prices or rents overnight. The housing shortage is too vast. Home prices are up roughly 54 percent nationally since 2020, existing-home sales remain near 30-year lows and the country still suffers from years of underbuilding.

But the bill intends to do something Washington has struggled with for decades by attacking the supply problem from multiple angles.

The legislation would streamline environmental reviews, tie certain federal funding to local housing production and provide communities with new tools and incentives to build more homes. It expands the definition of manufactured housing, potentially helping developers sidestep restrictive local zoning and boosts support for accessory dwelling units and other lower-cost housing options. There are also new resources for rehabilitating aging properties and converting underutilized infrastructure into housing.

It’s an approach we’ve seen happening more and more across the country, as states and cities increasingly experiment with ways to speed approvals, loosen zoning restrictions and incentivize new construction.

The effects would likely be gradual, taking years rather than months. More townhomes, ADUs, multifamily projects and manufactured housing could slowly add inventory to markets that desperately need it. Even then, many of the obstacles in building more housing remain local, from restrictive zoning rules to community opposition that has stymied similar reform efforts in states across the country.

For builders, developers and investors, certainty may be the biggest immediate benefit.

That became clear during the debate over one of the bill’s most controversial provisions. An earlier Senate version would have forced build-to-rent investors to sell homes within seven years of construction. The proposal effectively froze capital across the sector, with one survey estimating that $3.4 billion in investment and roughly 10,000 housing units were put on hold.

The revised legislation still limits large institutional investors’ ability to buy single-family homes, a politically popular measure championed by Trump himself. But by stripping out the forced-sale provision, lawmakers avoided potentially derailing an entire corner of the housing market.

That helps explain why the bill attracted support from homebuilders, realtors and housing advocates alike. Despite disagreements over issues like rent regulation and institutional investors, there’s a growing consensus across the industry that increasing supply has to be part of any affordability solution.

The irony is that the industry may end up waiting a little longer for the first significant federal housing legislation in decades. The downstream effects won’t be immediate. New projects still need financing, approvals and time to break ground.

But each day the bill sits on the president’s desk will stretch that timeline even further.

There was plenty of other real estate news this week. New York City is officially getting a rent freeze, George Pino was acquitted and Ryan Serhant is expanding into Texas. These and more stories below

It’s official: New York City is getting a rent freeze

The city’s Rent Guidelines Board voted seven to one in favor of a freeze Thursday night, at El Museo del Barrio in Manhattan. The board approved rent increases of 0 percent on one-year leases and 0 percent on two-year leases.

Soloviev eyes record $400 rent at nearly full 9 West 57th Street

Stefan Soloviev is taking Manhattan’s trophy office market to new heights with a bid for a record-breaking $400 per square foot lease at 9 West 57th Street. The asking rent is for an 11,155-square-foot space on the 50th floor and would eclipse the building’s own $327.50 per square foot record set earlier this year.

Jury acquits George Pino in boat crash death of 17-year-old

A Miami-Dade jury acquitted commercial real estate broker George Pino of all criminal charges tied to the 2022 boat crash that killed 17-year-old Luciana “Lucy” Fernandez. After less than two hours of deliberation, jurors found Pino not guilty on manslaughter and vessel homicide charges stemming from the Labor Day weekend accident.

Ryan Serhant lassos the Lone Star State with four Texas offices

The celebrity broker is planting flags in Houston, Dallas, Austin and San Antonio with a founding team recruited from rival firms. The expansion signals Serhant’s push to capture a share of Texas’ growing luxury market as the brokerage continues its rapid national rollout.

Rosen roadblock? SL Green sues RFR over Madison Avenue building access

SL Green sued RFR, claiming Aby Rosen’s firm is blocking access needed to move forward with its planned 346 Madison Avenue office tower. The REIT says months of stalled negotiations have delayed demolition and construction on one of Midtown’s highest-profile developments.

Measure ULA tax could see nearly 75% haircut under new state bill

A proposed state law would cap local transfer taxes at 1.5 percent, dramatically undercutting Los Angeles’ Measure ULA rates. If enacted, it would reshape one of the state’s most closely watched real estate taxes while reducing funding dedicated to affordable housing programs.

Mamdani-backed candidates sweep NYC’s Democratic primaries

Candidates backed by Mayor Zohran Mamdani and the Democratic Socialists of America swept several key New York City Democratic primaries. The results could strengthen support for progressive housing and tax policies with major implications for the real estate industry.

S2 Capital’s REIT troubles ratchet up with $140M in multifamily foreclosures

Scott Everett’s S2 Capital is facing another $140 million in multifamily foreclosures after its REIT warned investors to expect a total loss of equity. The latest filings underscore how floating-rate debt and stubbornly high interest rates continue to batter once-booming value-add apartment strategies.