Bipartisan Home Affordability Bill Moves Forward

The House of Representatives has progressed a bipartisan bill to tackle the nation’s housing affordability crisis. Lawmakers voted on Wednesday to pass the legislation, aimed at encouraging homebuilding across the United States and curbing corporate landlords from acquiring more than 350 houses. The bill passed with a vote of 396 to 13. It amends a version earlier passed by the Senate two months prior. Both chambers must align on a single version before it can proceed to the President.

This legislative action comes as both parties aim to demonstrate proactive efforts before the midterm elections. Home prices currently average $400,000, a figure out of reach for many Americans due to a housing shortage. Realtor.com estimates a 4 million unit gap between available homes and demand, suggesting that accelerating the supply of homes could alleviate this deficit.

If enacted, this would be the largest housing legislation in several decades. The bill’s provision restricts corporations from purchasing additional single-family homes if they own more than 350 properties. This policy represents a bipartisan concern, where corporate landlords are perceived to outbid American families by utilizing substantial cash reserves. Although these investors comprise merely 3% of the single-family rental market nationally, their impact is felt more heavily in regions like the Sun Belt and cities such as Indianapolis and Seattle.

President Trump had previously signed an order discouraging federal support for large investors purchasing single-family homes. Sen. Raphael Warnock, D-GA, has championed this initiative, and it is reflected in the Senate version of the bill.

Alternatively, the Senate’s proposal allows investors to construct homes to rent, termed “build-to-rent” properties. This segment now constitutes 7% of all single-family home construction. Proponents argue this approach expands housing supply, thus reducing costs. However, the Senate bill’s provision, requiring investors to divest these homes to families after seven years, faced strong opposition from the homebuilding industry. The House bill excludes this requirement.

The legislation also simplifies regulatory hurdles. Factory-built homes no longer need a permanent chassis, potentially reducing costs. Streamlined environmental reviews for in-fill development and community grants to design preapproved housing patterns are other features. Cities utilizing such designs report quicker and cheaper construction, benefiting affordability.

While President Trump urged support for the original Senate bill, he has yet to express views on the House’s adjusted proposal. The bill returns to the Senate for further consideration.