The House of Representatives gave final approval on Tuesday to a sweeping bipartisan bill designed to lower housing costs, passing it 358-32. The legislation now heads to President Donald Trump, who is expected to sign it into law on Wednesday at the Capitol. The Senate had already passed the bill 85-5 on Monday.
The bill aims to reduce federal regulations, streamline environmental reviews, speed up construction, and limit the ability of corporate landlords to purchase single-family homes. It represents one of the most significant efforts in decades to increase housing supply and bring down prices, as voters express deep frustration over the cost of living.
Key Provisions and Support
Democratic Rep. Maxine Waters of California, who helped negotiate the bill, noted that the median age of a first-time homebuyer is now 40 and that rents have surged about 47% since the COVID-19 pandemic. “Our country must do better and today we will,” she said.
The final package combines dozens of bills after months of negotiations, marking a rare moment of bipartisanship in a congressional session often marked by bitter standoffs. House Financial Services Chairman French Hill, an Arkansas Republican who worked with Waters and the Senate, said it is the first time in years that Congress has made “measurable, accountable changes” to housing laws. The bill will “help build more homes to meet that growing demand and keep the American dream within reach,” he added.
Expanding Financing and Protections
The legislation expands financing, encourages innovative housing like modular homes, requires new renter protections, and enhances programs to end homelessness. It also offers funding to local governments that build more housing, including Community Development Block Grant money to areas exceeding the median homebuilding rate. New dollars will help communities convert abandoned infrastructure into housing, and the bill provides a framework for reforming outdated zoning regulations that often limit larger developments.
Additionally, the bill raises limits on public housing units eligible for renovation financing and codifies a recovery program to expedite funds for communities rebuilding after disasters. Notably, it does not include a Senate provision that would have required investors to sell newly constructed homes within seven years.
Bipartisan Concern Over Housing Costs
Both Republicans and Democrats have embraced the bill as a way to address the nation’s affordability crisis, driven by rising home prices due to a shortage of affordable housing. The U.S. housing market has been sluggish since 2022, when mortgage rates began climbing from pandemic-era lows. Sales of previously occupied homes have hovered near a 4-million annual pace since 2023, well below the historical norm of 5.2 million. Sales slowed to a 30-year low last year and remain weak, declining in January and February compared to a year earlier.
The Economic Report of the President in April identified a shortage of 10 million homes. A report this month from the Joint Center for Housing Studies at Harvard University found existing home sales at three-decade lows and inventories rising due to high buying costs. “Cost burdens for both renters and owners continue to climb, while assistance remains profoundly underfunded,” the report said. While the median U.S. monthly rent has been declining for nearly three years, it was still 17.2% higher in May than before the pandemic, according to Realtor.com data.
The legislation drew widespread support from housing organizations, including those representing landlords and large property owners as well as tenant and low-income renter advocacy groups. It also united Republicans and Democrats, with many noting the unusual bipartisanship. “In this polarized and angry Congress, we are actually getting something done,” said Rep. Jim Himes, D-Conn.
