Senate Approves Sweeping Housing Reforms Amid Inflation Concerns
In a rare display of bipartisan unity, the U.S. Senate overwhelmingly passed a comprehensive package of reforms this week aimed at lowering housing prices, a top voter concern as inflation spikes ahead of the November midterm elections. The vote, which concluded with an 89-10 tally on Thursday, marked a significant legislative effort to address the high cost of living, exacerbated by rising food and gas prices amid the ongoing war in Iran. However, even before the gavel fell, Republicans in the House began issuing demands for alterations, threatening to unravel the coalition that supported the bill in the Senate and potentially spoil what could be the last major opportunity this Congress has to tackle affordability issues.
The 21st Century ROAD to Housing Act: Key Provisions and Support
The legislation, known as the 21st Century ROAD to Housing Act, was authored by Senator Elizabeth Warren, a Democrat from Massachusetts, alongside Senator Tim Scott, a Republican from South Carolina and chair of the Senate Banking Committee. It includes dozens of bipartisan provisions designed to make homeownership more accessible. Key measures involve speeding up affordable housing development, expediting approval processes, boosting federal housing counseling, encouraging states and localities to liberalize zoning laws, and streamlining numerous regulations. The bill has garnered support from key stakeholders and an endorsement from the White House.
Senator Scott emphasized the bill's potential impact, stating, "We can do what so many folks failed to do in this legislative body for the last few decades. That is, pass consequential legislation that makes it easier to become a homeowner for those that are ready for that part of their journey."
House Republican Opposition and Demands for Changes
Despite the Senate's strong backing, some House Republicans are insisting on a conference committee to reconcile differences with their version of the bill, which passed earlier this year with a bipartisan vote of 390-9. This move could delay or even stall the legislation's passage. Hard-line conservatives have expressed opposition to Warren's role in shaping the Senate bill, particularly a controversial provision backed by former President Donald Trump that prohibits institutional investors from purchasing single-family housing. Warren defended this measure, telling HuffPost it aims to prevent private equity from reaping all profits from new housing sales, but critics argue it would stifle new construction.
Other GOP lawmakers are frustrated that Senate Republicans refuse to eliminate the filibuster to pass the SAVE America Act, a conservative priority that would nationalize elections and restrict mail-in voting. Representative Bill Huizenga, a Republican from Michigan, criticized the Senate's approach online, writing, "Since the Republican Majority in the Senate won't fight for the Save America Act, it shouldn't be surprising to watch them support Senator Warren's housing bill. The House passed a superior bipartisan product to deliver meaningful reforms and improve housing affordability. I encourage Speaker Johnson to go to conference to improve this subprime Senate product for the American people."
Trump's Influence and Internal GOP Struggles
Former President Trump has complicated matters for top Republicans by threatening not to sign any legislation until Congress passes the SAVE Act, a demand echoed by MAGA influencers. In a conversation with House Speaker Mike Johnson, a Republican from Louisiana, Trump reportedly said, "no one gives a shit about housing," according to Punchbowl News. However, the SAVE Act faces insurmountable hurdles in the Senate, where Democrats oppose it and Republicans lack the votes to bypass the filibuster.
Senate GOP leaders plan a lengthy debate next week to appease their base, which believes voting changes are crucial to avoiding electoral losses in November, rather than focusing on housing affordability. Senator Ruben Gallego, a Democrat from Arizona, condemned the SAVE Act as voter suppression, stating, "This is a proposal to change who can actually vote to help the Republicans and the president save their sorry asses."
Bipartisan Concerns Over Institutional Investor Provision
The provision requiring large institutional investors to sell rental properties to families after seven years has sparked bipartisan consternation. Senator Brian Schatz, the lone Democrat who opposed the bill, and members of the Yes In My Backyard (YIMBY) movement warn it could jeopardize new housing construction. Senator Thom Tillis, a Republican from North Carolina and another opponent, called the provision "absurd," arguing, "The problem that we have with housing is about 4 million too few houses. We need housing starts. That's how you can look the American people in the eye and say we've addressed affordability. You can't look them in the eye with a straight face and say this ban on institutional investment has anything to do with that."
Uncertain Future for Housing Legislation
As the 21st Century ROAD to Housing Act faces a bumpy ride in the House, Senator John Kennedy, a Republican from Louisiana, noted the pride among members in both chambers and the potential need for further compromises. He remarked, "I don't know what changes, if any, we'll have to make to accommodate the House. I know we've already made some. I think we'll have to make others. If they turn this thing into something out of 'Alien,' then I'll vote against it, but I don't think that's going to happen." The National Association of Home Builders has also urged the two chambers to resolve differences through a conference, highlighting the high stakes for addressing housing affordability in a time of economic pressure.
