Senate Passes Bipartisan Housing Affordability Bill

On March 12, 2026, the Senate passed the 21st Century ROAD to Housing Act, a bipartisan initiative aimed at improving housing affordability. The bill, co-authored by Senator Tim Scott (R-SC) and Senator Elizabeth Warren (D-MA), includes approximately 40 provisions designed to increase housing supply and lower costs. Key elements of the legislation include easing zoning regulations, expanding manufactured housing, and banning large institutional investors from purchasing single-family homes. The Senate's version of the bill is now set to be reconciled with a narrower House counterpart, the Housing for the 21st Century Act, led by Representative French Hill (R-AR).

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The legislation emerges from a persistent housing shortage exacerbated by the 2008 financial crisis, which has led to rising home prices across the United States. According to a Goldman Sachs report, easing zoning restrictions could potentially add 5 million housing units over the next decade. The Senate bill aims to encourage local governments to adopt more pro-housing land use policies and streamline construction processes.

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Senator Warren emphasized the bill's focus on increasing housing supply, stating, “This is a bill about increasing supply, and anybody who wants to try to block this bill is going to have to explain to the American people why they don’t want to see us build more housing.” Senator Scott highlighted the need for affordable housing, noting that the average age of a first-time homebuyer is now 40, which he deemed "too old" to experience the American Dream. The National Housing Conference's president, David Dworkin, called the bill “an important step forward” but noted concerns about provisions that could hinder investor participation in rental housing.

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Despite bipartisan support, the bill faces opposition from some conservative lawmakers. Senator Thom Tillis (R-NC) criticized the collaboration with Warren, questioning, “My God, when did conservative Republicans start carrying Elizabeth Warren’s banner on housing strategy?” Additionally, House Freedom Caucus Chairman Andy Harris (R-MD) expressed skepticism about the bill's reception in the House, suggesting it may not align with conservative values. Critics argue that banning institutional investors could inadvertently push renters out of neighborhoods and increase overall rent prices, as noted by rental housing economist Jay Parsons.

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While the Senate bill includes provisions to ban large institutional investors from buying single-family homes, some analysts argue that these investors account for less than 1% of the housing market. A report from the American Enterprise Institute indicates that most investor-owned homes belong to smaller landlords, raising questions about the effectiveness of the proposed ban in addressing the broader affordability crisis.

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The Senate's passage of the 21st Century ROAD to Housing Act sets the stage for negotiations with the House to reconcile differences between the two bills. The outcome will determine the final legislative framework aimed at addressing the ongoing housing affordability crisis in the United States.

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